Although some chains have found the rental business lacking in profits, a survey conducted by PolyGram Video, New York, indicates that video rental customers are spending significant sums on other products.
re projected nationally, said Allan Golden, PolyGram's's vice president of sales.
The average customer who goes to a supermarket primarily to rent a video spends $15.61 on other products, the survey showed. Customers who go for other reasons, but also rent videos, spend much more.
"That video is drawing people into the supermarket environment and giving them the opportunity to spend money on those other things is a very strong positive," Golden said. The video trade needs to do more research into the viability of its products in the supermarket channel, he noted.
A video executive with a major Midwestern chain, who asked not to be identified, confirmed the findings of the PolyGram study. "In our stores where video is a destination, customers definitely are coming into the supermarket to pick up other items," he said.