HMV is re-vamping its retail outlets, replacing old-style music promotions with digital download hubs and Mac-based internet cafes.

A Guardian report reveals the music retailer - which has seen profits fall as it faces the onslaught of digital on music sales - has put together a new plan for the future of its business.

HMV's first next generation store opened in Dudley last week, with another opening in Tunbridge Wells on Wednesday.

The new store set-up is designed to help the business meet new challenges, as CD and DVD sales go into decline.

The new plans see the business change its tack, introducing juice bars, Macs for surfing the internet and checking MySpace and Facebook sites - an attempt to bring digital into retail.

"The new design reflects the way customers consume media and the way they spend their time," said HMV chief executive Simon Fox. "It's becoming an entertainment store rather than a music and DVD store."

The retailer insists music retail sales have a future, pointing out that 90 per cent of such sales are still in physical formats.