BOUND FOR SUCCESS

JOEL ELSON

CHATTANOOGA, Tenn. -- Red Food Stores is producing impressive sales per square foot with special-interest videos cross-merchandised in grocery aisles.

This month, for example, the chain will place shippers of the "Kathy Ireland Total Fitness Video" from UAV Corp., Fort Mill, S.C., at diet food sections and at checkout stands. The 90-minute video will retail for $14.99.

Although Red Food executives declined to comment on the special-interest cross-promotions, a source close to the chain said sales per square foot of special-interest videos have soared when cross-promoted in other areas of the store.

"Cartoons merchandised at the cereal aisle, NASCAR tapes placed with racing and car magazines, and children's subjects set up by the toys drive special-interest volume about 15 times higher than normal sales per square foot at the chain," said the source.

Red Food carries special-interest tapes at some 40 stores and "has floor shippers out almost continuously," the source added.

The special-interest tapes are merchandised as in-and-out promotions, with products retailing from $1.99 for cartoons to $9.99 for racing car tapes. Subjects appeal to all age groups. Children's educational tapes have done especially well at Red Food, according to the source.