Wholesalers are gearing up for growth in writable compact discs, but as is often the case with new items, finding space for them is the biggest problem.
"The future of CD-Rs looks very good," said a general merchandise executive with a national wholesaler, who asked to not be identified. "It should do very well, and anyone should consider getting into that market because it is growing so fast."
The problem for many independents is space. "We've been dabbling with it a little bit, with some three-packs and five-packs. The challenge for us is to find room in our stores for the larger pack sizes: the 10s, 20s or 50s. That's really what seems to be selling out in the marketplace. Our three-packs and five-packs are selling slowly, but not nearly as much as I think we could do if we had some larger packs. But the challenge is finding the shelf space to display them," he said.
For many Southern California retailers, the store size of independents is an issue, as is pilferage, said a general merchandise executive with a West Coast wholesaler, who also asked not to be named. "I don't think there is any question that there is opportunity for retailers in high-tech products, but they often just don't have enough footage to cut in a 4-foot section, or even put a freestanding fixture on the floor," the executive said.
"To a lesser degree in certain areas, pilferage is a challenge. We are talking about high-ticket items," he said.
The growth of CD-Rs relates to increases in the home office category, said Charles Yahn, vice president, nonfoods division, Associated Wholesalers, York, Pa. "That whole category is starting to grow, not at a fast rate, but steadily. As technology becomes cheaper and better to use, it will continue to grow."
Millbrook Distribution Services, Leicester, Mass., is building CD-Rs into the stationery sets that it provides to its customers, said Ted Gardner, executive vice president. "It's a convenience opportunity. The retailers don't need it to drive their business."
CD-Rs can be sold promotionally in some supermarket locations -- for instance, in college towns. "If you go to the bookstore on college campuses, they are not that price-competitive, so that's an opportunity a number of our retailers have taken advantage of," Gardner said.
"Overall, there are going to be more and more technological bells and whistles and gadgets that are going to find their way into all the channels of consumption that are associated with food, whether it is mass or drug or grocery. So from my perspective, it is large, it is growing and it is going to continue to grow," he said.
