CHICAGO -- Jewel-Osco is testing video rental at a store that opened here last month, marking the first time that it has offered the service in this market.
The video department, which SN estimated to measure about 450 square feet, is being merchandised by Video II, Sandy, Utah, which merchandises video rental departments for Jewel-Osco's parent company, Albertson's, Boise, Idaho. Albertson's is one of the few supermarket chains that is adding video rental departments, according to sources in the industry.
Karen Ramos, spokeswoman, Albertson's, said the service is a one-store test, and there are no plans to expand to other units.
"We think this is a good area to try it," she said, adding that the neighborhood is largely residential and located near a college.
The video rental department is housed in the Osco side of the combo store near the photo-processing lab and the service desk.
SN estimated that the store offered about 1,500 to 2,000 units of rental inventory. A sign in the store said it carried more than 800 new releases.
As a grand opening promotion, the store offered any video or DVD for 79 cents with a Preferred Card.
A store employee said business was brisk, but Ramos said the company planned to eye results over the long term.
