The variety store group warned in January that the tie-up may not be renewed, but fears were confirmed when Tesco informed EUK that it would not continue with the contract beyond April 2007.
However, the news was offset by a separate agreement with Tesco for EUK to supply books until March 2008. EUK has also secured a contract to supply WHSmith's core DVDs, as well as its supply of music and non-core videos.
Woolworths chief executive Trevor Bish-Jones said: 'EUK's trading relationship with Tesco has been a successful one and we are therefore sorry to see part of this relationship come to an end.'
The Tesco contract is thought to represent a sizeable part of the EUK business, although Woolworths has not disclosed its value.
A Tesco spokesman said: 'We have learned a lot from EUK over the years, but believe we are now ready to take greater control of this area of our business. This will enable us to continue to offer customers low prices and better service in this increasingly competitive market.'
TNS Worldpanel reported last month that a quarter of all CDs and DVDs are now purchased through supermarkets.
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