SELF-SERVE RENTAL RESERVATION GO ON-LINE

RANDY WEDDINGTON

LEXINGTON, Ky. -- Grocers and other retailers in this area are the first to benefit from the Internet's first automated movie-rental reservation system, which debuted last month on Cinevault.com and is operated by Video Vending North America here.

The system, initially available in 10 locations from Lexington through Northern Kentucky to Cincinnati, "has been in testing for a number of months," VVNA President Michael McLaughlin told SN. "But it has just been unveiled to the public at large."

The service adds new functionality to VVNA's CineVault "movie dispensers" -- vending machines that deliver self-service video rentals, "installed through the wall, with outdoor access, 24 hours a day, like an ATM," he said.

On-line customers can browse these locations, through store-specific inventories, to choose rentals. "Members can log on before leaving home or the office, make their reservation, and within two hours pick it up at the store," McLaughlin said. The on-line orders are received through the vending machines and ready for customer dispensing and pick up.

This capability could be a boon for supermarkets. "A person might choose to reserve their movie at one of our locations which is tied to a grocery store that they might not regularly shop at, given the fact that they have a movie waiting for them there," he said. "So, supermarkets could realize some incremental business and introduce new customers to their stores."

Supermarkets with the machines are naturally expectant. "We're very interested in seeing what the new Internet reservation system will do," said Brad Newsome, president, Sloane's Signature Markets, Lexington, Ky. "It's a technological feature that allows us to be more on the cutting edge."

The seven-store chain currently has CineVaults in two locations, which have been in place for approximately a year and a half. "They're in probably the two most upscale stores we have," Newsome said.

Additional locations listed on the CineVault site include shopping centers and convenience stores, as well as two Kroger stores in Lexington, but more locales are planned. "We're in the process of finding Kroger stores in which to locate in the Cincinnati area," said McLaughlin.

In considering potential sites, "What we're looking for in a supermarket is volume," said McLaughlin.

Product assortments are similar to those of other rental operations as well. "In terms of title mix, it's equivalent to what you'd find in a video department," he said. "We are largely new-release driven, but we do have catalog movies. And we have both VHS and DVD in every machine."

The primary differences are operational. "We're simply changing the tools," said McLaughlin, by dealing with product "in a lower-cost environment because we don't have the staffing or overhead that a video store or a video department would have."

And supermarkets appreciate these differences. "These programs are nice when you don't have to have additional labor hours," said Newsome.

"All we ask from our supermarket partners on a day-to-day basis," McLaughlin said, "is to provide membership applications."

The self-service program can be further extended into supermarkets without adding to the store workload. "In one of our stores, we have a kiosk that customers can order from as they start through, reserving their movie," Newsome said. "After they complete their shopping with us, they can pick up their movie outside."