COBORN'S UPGRADING TWO VIDEO SECTIONS IN ACQUISITIONS

DAN ALAIMO

ST. CLOUD, Minn. -- Coborn's is upgrading the video rental departments in two of the five stores it is acquiring from the Holiday Cos., Bloomington, Minn.

The other three stores are being considered for the video rental program, said Brad Ufer, video merchandiser. Four of the five stores were acquired last month, with a fifth to be purchased at a later date, he said. Work on the first of the two departments was completed last month, with the other to follow soon, he said.

"Initially, this means two more video locations for us. Ultimately it means the possibility of having five more video departments," he said. Coborn's now has 18 stores, all offering video rental.

"Coborn's has found video to be a viable source of profit for its operation. We agree with the industry analysts who say that video's potential is just beginning," said Ufer.

The retailer is enhancing the inventory and the presentation of the two video departments, he said. "We are going to increase the number of new releases and modify the pricing to give the customer a better value," he said. "At this point, less than 10% of their stock is new releases. In our stores, about 25% to 30% is new releases. We intend to change their position and have more new movies for customers to rent," said Ufer.

Fixturing and signs will be "upgraded and refurbished," he said.

As in Coborn's other stores, the two new departments will have permanent sell-through sections and use the shared transaction fee program of SuperComm, Dallas, to boost new release depth and breadth, he said.