For long now, people believe the Holy Grail of retailing in the future lies in the Internet, and as a result more and more companies are taking their business online. Now, Video City, Inc. and West Coast Entertainment Corporation announced that all Video City website customers wishing to purchase movies online will be automatically linked to West Coast Video’s website.

Video City has signed a definitive merger agreement with West Coast Entertainment. This acquisition will make Video City the fifth largest video specialty retailer in the U.S. The completion of the merger is subject to certain conditions including the obtaining of financing, stockholder approval and certain regulatory and other third party approvals.

Upon completion of its merger with West Coast Entertainment, Video City will own 320 stores and will have an additional 107 franchise outlets. It has grown from 18 stores in the past year and a half and is one of the nation’s fastest-growing entertainment companies.