Marbecks' managing director Roger Harper describes it as a "boutique Borders", complete with a cafe. If it is successful, more stores will be rolled out around the country.
Alongside this move, The CD and DVD Store, which bought Marbecks three years ago, is being rebranded as Marbecks next week.
"We are increasing the amount of merchandise we do - T-shirts, headphones, posters and books - so the brand name of The CD and DVD Store is a bit restrictive," Harper says.
The marbecks.co.nz website has been trading for more than 10 years, and Harper says the company is ramping up the online side of its business, introducing books, hardware and T-shirts to its existing music, movie and game products.
Its own music download service is also in the pipeline.
"Initially, we viewed downloading as a threat, now we are working it into our business strategy, seeing it as an opportunity - we're not going to sell more CDs tomorrow."