SIR Richard Branson has announced plans to turn his Our Price record stores into a pioneering new Internet-led brand.

The new V Shops will encourage people to use in-store Internet-linked computers to buy Virgin products.

Sir Richard opened the first store at Notting Hill Gate and said he planned to have 100 Our Price stores, including many in the region, converted to V Shops by November.

Inside, people will be able to buy CDs, mini discs and mobile phones among other products.

Anything from the Virgin brand including gas and electricity that is not available in the shop can be purchased over the Net on the computers inside.

"V Shops across the country will introduce millions of British consumers to a new way of shopping," he said.

"Stealing the idea from Dr Who, the V Shop is the ultimate 21st century Tardis introducing a new find-and-buy touch-screen kiosk, offering access to a further 110,000 music and movie products."

The scrapping of Our Price comes two years after Virgin paid £145m for the 75 per cent of the business owned by WH Smith.

The shops were deemed too small to become part of the Virgin brand and Sir Richard already owned the larger Virgin Megastores.

More than £20m is now being invested by the Virgin Entertainment Group into altering the Our Price stores.

Last month Our Price music and video stores up and down the region closed their doors, with management confiming that the stores were undergoing a transformation.