The Homa Files

TakeAway:  Surprise surprise … DVDs are no longer worth the floor space. 

Now, Wal-mart has essentially crushed this product in one fell swoop.  When you leave it up to retailers to force product evolution, chances are that it is too late.

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Excerpted from WSJ “Wal-Mart Scales Back DVD Displays” By Nat Worden, October 5, 2009

Wal-Mart accounts for nearly a third of DVD retail sales in the U.S. … But, as part of a larger effort to clean up its aisles and appeal to higher-end shoppers, Wal-Mart is doing away with display cases to promote the latest hot movie titles.

The move comes as major film studios are reeling from declines in revenue from DVD sales as consumers turn to low-cost rental services and digital downloads for home movies …

“We think the new strategy implies Wal-Mart no longer sees DVDs and Blu-ray discs as traffic drivers” .

The change to its DVD selling strategy is part of a larger merchandising overhaul the company calls “Project Impact,” in which it has been devoting more shelf space to top-selling products and cutting back on items that linger.

The discount giant also is trying to spruce up its image and cut back on clutter in its aisles, like corrugated displays for DVDs, in hopes that it can attract a more upscale shopper …

Meanwhile, Wal-Mart and other major retailers, along with several fast-food chains, have been adding low-cost DVD rental kiosks, such as Redbox, near store entrances … And studios have cut deals with services like Netflix …

Edit by TJS

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Full Article
http://online.wsj.com/article/SB125470337132563199.html?mod=WSJ_hps_sections_tech

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This entry was posted on October 22, 2009 at 7:35 am and is filed under Digital Media, Retailing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.