Shrink is an issue that all retailers face when it comes to prominently merchandising sell-through videos. For some, it is an occasional problem. But it keeps other stores from maximizing their video sales potential, retailers said. Theft is an obstacle to placing videos in the main part of the store at Harp's Food Stores, Springdale, Ark., according to Randy Weddington, video specialist. Away from secured video departments, "it's harder to keep an eye on it," he said. "Unfortunately, in high-shrink areas, you have to put the sell-through videos behind the counter where the customers can't find them," said a video executive with a Midwestern chain, who asked not to be identified. While that approach results in significantly fewer sales, "when you lose two or three pieces of selling at such a low margin, you might as well not have carried it at all," he said. In one high-theft location, Bel Air Markets, Sacramento, Calif., displays empty boxes and gives the customers the tapes when they pay, said Rick Ang, buyer at Video Mart, Sacramento, which racks Bel Air's video program. But shrink is less of an issue than competition for space. "Theft is a problem, but it is like any other product in your store. We are not hiding the cosmetics. We are not hiding the meat. So there is no reason to hide the video either," he said. "Theft is a small concern, but it's always a concern," said Matt Dillon, video director at Boogaart Retail division of Fleming Cos., Concordia, Kan. "It hasn't been a huge problem, but it is always an issue. That is another reason we try to get the videos displayed in a more visible location. That way we can keep an eye on it from the service center or checkstands," said a video executive with a Southwestern chain, who did not want to be identified. Positioning video sell-through in high-profile areas is one way to keep shrink in check, said the retailers. Another is to pull the shippers off the sales floors at night in 24-hour stores. "It just has to be monitored and managed," said Clifford Feiock, video coordinator at Nash Finch Co., Minneapolis. "Our stores that have been successful in meeting the shrink challenge are finding that their sell-through results are fantastic, compared with just displaying the product in the rental area," he said. "It hasn't been a big problem for us, but it's something we keep an eye on," said Jeff Olson, video specialist at Copps Corp., Stevens Point, Wis. Tighter controls, people checking the racks regularly and high-visibility positioning are keys to keeping theft in check, he said. "If you have [sell-through] near a service area, then you've got an extra set of eyes watching it and that cuts down on the shrink," he said. The price points of sell-through videos are now in line with other supermarket products, said Tom Hembree, vice president of operations at K-VA-T Food Stores, Grundy, Va. In many cases, "the pricing is not any more than, say, a 100-count bottle of Tylenol. So as long as the prices are not too high, we are OK with it," he said.
