Two-year contract from August
Woolworths has revealed its entertainment wholesale subsidiary, Entertainment UK (EUK), is to supply Asda with selected products including CDs, video games and DVDs.

The variety retailer said it anticipates that supply will be phased in from August for a minimum of two years. On a full-year basis, the retailer forecasts that this will increase EUK's turnover by about£200 million.

Woolworths chief executive Trevor Bish-Jones said: 'It marks another important step in the development of EUK. Over the past 18 months, through a series of contract wins and acquisitions, we have significantly improved the underlying quality of the EUK business. We now have a fully diversified base of quality retailers as our customers.'

Seymour Pierce analyst Richard Ratner said: 'After set-up costs, it is unlikely to make a contribution in this financial year. For next year we add£4 million to profits to give£34 million. [Woolworths] is building up a good distribution business.'

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