MEMPHIS, Tenn. -- Seessel's Supermarkets here will replace its closed video rental sections by the end of the year, or in the first quarter at the latest, with other products or services.
Different stores will get products or services appropriate for their neighborhoods, said Tom Styers, director of general merchandise and health and beauty care. He would not say exactly what the retailer will put in the spaces because contracts have not been signed yet.
"Our hope is something will go in by the end of this quarter. We have some retrofitting and so forth to do, depending on the vendor. But this is a busy time of year in the grocery market," he said.
The company had five live inventory, store-within-a-store video rental departments and two nonlive sections, he said.
The program ended earlier this year, said Styers.
Choice Network, here, operated the five 1,000-square-foot departments on a leased-space basis and the two smaller ones under a shared-revenue arrangement, said Styers. The retailer had put in the rental program four or five years ago, he said.
The rental program had been operating satisfactorily from Seessel's point of view, according to Styers, who would not comment on why the rental departments were taken out or on what has become of Choice Network. "We just got out of it because it was a good business decision to do so," is all he would say.
Efforts to reach Choice Network were unsuccessful as two phone numbers listed to the company have been disconnected. When contacted, video distribution sources knew nothing about the company.
Although Seessel's is moving away from video rental, Styers has not completely soured on its prospects in a supermarket environment. "I think it can be a positive as long as the company you are leasing to is strong, or if there is a commitment from upper management to put the money in to develop the business. That's what it is all about.
"If you are able to bring in enough A-titles, as well as keeping the B-titles, which is where the money is, you can make money on it and it's a good draw. It's a convenience item that brings the customer back into your store one more time," said Styers.
Seessel's will continue with sell-through video, he noted. "Sell-through is always good and strong for us. We'd like to make more money on it, but nobody else does. But it is good for your customer base," said Styers.
