BOISE, Idaho -- In a chainwide expansion that was completed last month, Albertson's has significantly increased its video rental and sales program, according to video-industry sources.
Companies racking the Albertson's rental departments have doubled their spending on new releases, while the retailer has increased the amount of labor hours it devotes to the department, the sources said. Meanwhile, space allotted for sell-through video also has been increased and CD-ROMs will be added in some divisions.
The program was initiated about six months ago and reached all stores last month.
When contacted, Ron McMillin, vice president of sales for Sight & Sound's Western Region, St. Louis, declined comment, except to acknowledge "Albertson's business with us has doubled." Albertson's uses three video rackers to service its stores. Video Two, Sandy, Utah, buys from Sight & Sound. Executives at Albertson's and Video Two did not return calls for comment.
Local sources in the Salt Lake City area confirmed the changes in two stores. Local sources reported increased signage for the video departments, such as mobiles, banners and posters. Three-sided permanent sell-through fixtures also were seen in the stores, along with "Top 10" displays near the video service counters, they said.
Sight & Sound provides accounts with a permanent sell-through program where inventory is controlled through an electronic planogram system. This increases turns on titles that generate more profits than the price-sensitive "event" titles, said McMillin.