PRICE CHOPPER TESTS DVD RENTAL VENDING MACHINES

DAN ALAIMO

SCHENECTADY, N.Y. -- Price Chopper Supermarkets here began testing DVD rental vending machines in three Albany, N.Y.-area stores last month, confirmed Mona Golub, spokeswoman for the chain.

"We have high hopes for the program, and if it is as successful as we expect it to be, there will be more stores on board soon," she told SN.

When asked about the chain's existing video rental program, Golub said the company was focused on the test. "DVD vending appears to be an exciting, cutting-edge technology that will be very attractive to, and convenient for, our customers," she said.

The DVmatic machines are from ELO Media, New York. The machines hold 180 different titles, including video games, and a total of 700 inventory units, although 150 are designated for future sell-through use, possibly of previously viewed movies, said Oren Hon, president of ELO. The machines do not offer new DVDs for sale because of Price Chopper's presence in the category, he said.

The machines are located in the front ends of the three stores, he said. Two are before the checkouts in the traffic pattern and one is after. None are in the vestibule, he said.

"Price Chopper really wanted to bring people into the store. If it's in the vestibule, people returning the movies don't have to go into the store. This way, they are creating more foot traffic," he said.

New releases are about 50% of the machines' inventory, 5% or less is in games, and the rest is comprised of titles from the past six months, Hon said. The rental rate for all titles is $2.99 for 48 hours, with payment by credit or debit card. Transactions involve swiping the card and punching in a code for the title selected, and the movie comes out in less than 50 seconds, he said. Returns are accomplished by swiping the card, pressing "return," and sliding the movie back into the machine. "It's one machine that does the work of a video store," Hon said.

Price Chopper has been noted for its video promotions, and Hon noted there will be promotions for the DVmatic machines as well.

"The promotional programs we are exploring with DVmatic increase its value, and make the product more attractive to consumers," Golub added.