Tesco has ended its entertainment distribution contract with high street retailer Woolworths.

Entertainment UK, the entertainment distribution business of Woolworths, had a contract with Tesco to supply it with DVDs, music and computer games.

However, in a statement released this morning, Woolworths said that it had been formally advised that Tesco would not be renewing the contract. The agreement will now terminate in April next year.

Trevor Bish-Jones, Woolworths’ group chief executive, 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.”

Earlier this year Woolworths warned that its Tesco contract may not be renewed.

Meanwhile, Tesco has extended its book supply contract with Entertainment UK until March 2008.