The only Virgin Megastore I know is the one at Union Square, always bustling in there, loud music and all. So maybe they do well only in high traffic urban environments. I used to go to a little music store in the Village, they sold new and used cds, I noticed they closed recently but their other store at Union Square is still open.
My last two trips to Tower, they packed my cds in artstore.com bags...buggers, I guess I will miss out on the future collectability of Tower stuff.