INGLES MARKETS SETS THE STAGE FOR CD-ROM MOVIE ROLLOUT

AMITY K. MOORE

BLACK MOUNTAIN, N.C. -- Ingles Markets here is introducing CD-ROM movies to about 150 of its stores this month, as well as adding titles to its existing CD-ROM software mix.

Six months ago, Ingles added computer software to its overall store inventory. However, the primary thrust in this latest rollout is the CD-ROM films. "We're bringing in different software titles, but the CD-ROM movies is the one major thing we're bringing in. It is completely new," said Harold Grogan, director of video at Ingles.

He expects there to be around 30 stockkeeping units, priced from $9.99 to $19.99. "Mask," "Seven," "The Lawnmower Man," "Dumb & Dumber" and "Teenage Mutant Ninja Turtles" will be among some of the titles first released.

Additional titles will be added, about three or four per month, as technology advances and more movies are put on CD-ROM, said Margaret Pacheco, vice president of marketing at Major Connections, the Dallas-based merchandiser and distributor of consumer software to supermarkets.

"Ingles has always supported the latest advances in computer technology. Very early on we saw the enormous revenue potential for CD-ROM software within our stores," Tony Federico, vice president of nonfood at Ingles, said in a written statement.

CD-ROM software has been so well received by the chain's customer base that executives decided to expand the number of titles from 40 original SKUs to 100, according to Grogan. CD-ROM software prices range from $9.99 to $49.99.

"Our consumers have embraced the software category, and we've seen significant sales increases month after month," Federico commented.

Of the chain's 193 stores, 150 units will sell the CD-ROM movies and software merchandised on spinner racks provided by the distributor, according to Grogan.

Larger stores will move from a spinner rack display to 12 feet of dedicated shelf space, Grogan said. Smaller stores will allocate about 8 feet, added Pacheco. "We're doing all of our upcoming stores this way," Grogan said.

"It's very unique in that [Ingles is] dedicating some of their own shelf space [as opposed to just spinner racks] to the software. It indicates their commitment to the whole category," Pacheco said.

According to Grogan, displays will be found in the video department "right at the end where our video rental stops." Ingles maintains 48 rental and sell-through video sections. In the stores without video departments, spinner racks have been placed near the front end, Pacheco added.

Advertising and promotional programs will be a joint effort between Major Connections and Ingles.