The station, which launches across 220 stores nationwide from 30 October, will feature exclusive new releases and celebrity interviews and will be presented by Kiss FM DJ Justin Wilkes.
There are also plans further down the line for an in-store music video TV channel, which would link in with the radio station.
Initially available in-store only and delivered via broadband, the station will eventually be introduced on HMV's website, www.hmv.co.uk. Advertising spots will be available for record companies only at this stage.
USP will use the station to promote the full range of HMV retail outlets, from stores to online to catalogues.
"A brand like HMV cries out to have its own media channel and we are proud to be producing it," said Dominic Smales, sales and marketing director at USP.
"We are aiming to provide the perfect companion and mentor to the HMV shopper. The output should inspire and offer suggestions as to what you might want to consider while browsing.
'It will also provide HMV with a unique opportunity to deliver commercial messages to the consumer without interrupting their shopping."
Smales, who has not ruled out offering the channel via mobile phones at a later date, added: "We are now in a place where brands can own their own content, which communicates exactly what they want to say about themselves, in an entertaining and engaging way.