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Borders (and B&N) to Increase Selection of DVDs

Old 10-28-06, 09:38 AM
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Borders (and B&N) to Increase Selection of DVDs

Interesting article from Video Business on Borders' plan to increase its square footage of DVDs and decrease its square footage of CDs. Article notes that this could fill in a "gap" in the DVD market caused by the demise of Tower and Musicland.

I know, some are going to cynically say, "Yeah there's a gap for retailers who sell DVDs at list price", but I've always liked shopping at Borders because of the wider selection and their frequent coupons and Borders rewards program help make them price competitive. I look forward to finding an even greater selection of DVD titles at their stores in the future.

http://www.videobusiness.com/article....html?nid=2705

"Borders builds up its DVD section
Bookseller adds more stores, trims CD space
By Susanne Ault 10/27/2006
OCT. 27 | Big bookseller Borders is expanding its store count and its DVD sections at the same time.

Borders is reconfiguring its merchandising to slim dedicated music sections and shifting square footage to stronger product categories, including DVD.

Studio sources said many Borders stores also are changing disc displays to a face-out design. Previously they showed spines, much the way books are shelved.

“It’s a good thing to get away from the spine,” one studio executive said. “That is a book mentality, but it wasn’t working for video sections. It’s good for [shoppers] to be able to see that package sleeve and really see the film. It’s a dramatic difference.”

Research firm NPD reports that Borders is gaining DVD unit sales volume, while losing CD unit sales volume. Year-to-date through August, Borders DVD volume is up 38%, and CD volume is down 4% versus the comparable 2004 period, according to NPD estimates.


The book specialty chain will have opened 35 new stores through its fiscal 2006 year, double its 2005 growth rate. In October in the U.S., Borders bowed stores in Pennsylvania, New York, New Mexico, Arkansas and West Virginia, among other locations.

Borders has more than 1,200 outlets worldwide.

“In response to the decline in music sales, Borders has taken steps to offset the sales decline while still offering our customers a broad selection of CDs,” Borders spokeswoman Ann Binkley said. “Although we are reducing the square footage dedicated to music, we are still committed to providing a broad assortment in our music sections.”

The current product mix at Borders is 72% books, magazines and calendars; 20% CDs and DVDs; 4% gifts and stationary; and 4% café and food items.

NPD notes that the entire bookstore channel has spiked 60% year-to-date in DVD unit volume and fallen 11% year-to-date in music unit volume, vs. 2004 levels.

Borders rival Barnes & Noble has reversed the emphasis within its music and movies sections over the last 18 months, from 60% music and 40% DVD space dedication to 60% DVD/40% music, studio sources said.

Borders and other booksellers could fill the void in the DVD market created when two entertainment chains, Musicland and Tower, filed for bankruptcy, causing a mass closure of stores.

“I do think consolidation offers Borders and other book retailers and non-book specialty retailers an opportunity to take more market share and make a bigger statement with the DVD category,” said Jeff Baker, Warner Home Video senior VP and general manager of theatrical catalog. “There are fewer locations that have a wide and significant assortment of DVDs.”

Bookstores make up about 2% of studio DVD sales. But NPD president of music and movies Russ Crupnick nevertheless believes suppliers should be especially supportive of the growing bookstore channel, as it caters to a desirable consumer base.

Half of the Borders DVD buyers come from households making more than $75,000 in annual income, according to NPD. Also, Border’s biggest age group for DVD shoppers is attractively young, with 24% of shoppers 18-24 years old, compared to just 14.5% of overall bookstore shoppers falling into that age range.
Old 10-28-06, 06:24 PM
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In 2000 Borders started taking about $5 off the list price of every DVD, bringing them about in line with Best Buy. After a year or so they started going up a few dollars again til they were back up to list price. There's so many places that sell DVDs below list price that you have to be pretty desperate to pay list for anything, though I'm not sure if the stores that do sell below list make any money off them.

I will give them props for being the only place I could find the Sesame Street Old School DVD this week though. This was the first new release I had to go someplace other than Tower for since that's dying now; didn't find it at Fry's, Best Buy, Barnes & Noble, Target or Wal-Mart, but Borders had it and on sale too.
Old 10-28-06, 07:18 PM
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everything i have seen at borders are list price or what seems like higher. but they do have more criterions than i have seen anywhere else.
Old 10-28-06, 08:51 PM
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When retailers who basically charge MSRP expand their DVD selection, it simply means that they will now have more DVDs that I won't be buying from them.
Old 10-29-06, 01:57 AM
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I agree. I'd be more excited if just kept their DVD selection the same and announced they were lowering prices. My only motivation to go looking in the DVD section of these stores is to see some things I might have missed in my online shopping and I won't buy it from the store but will go home to order it online.
Old 10-29-06, 12:09 PM
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Studio sources said many Borders stores also are changing disc displays to a face-out design. Previously they showed spines, much the way books are shelved.

“It’s a good thing to get away from the spine,” one studio executive said. “That is a book mentality, but it wasn’t working for video sections. It’s good for [shoppers] to be able to see that package sleeve and really see the film. It’s a dramatic difference.”
This is the worst way to display DVDs or books. It makes them so hard to find and you have to continously flip over the racks to find the DVDs you are looking for.
Old 10-29-06, 12:45 PM
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It's ridiculous that even with a 25% coupon plus the Borders Rewards 5% back that I could not find a disc that would be cheaper than other places. It's difficult enough with the books, but it's near impossible with the discs.
Old 10-29-06, 01:55 PM
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I like their selection, but I hate their prices.
Old 10-29-06, 10:38 PM
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It's unfortunate that they're going to be increasing DVD space at the expense of CDs.

Borders is great for carrying more obscure genres of music than you find at most other places, like jazz and classical. My g/f buys a fair amount of world music at Borders since it's the only place that carries it in any depth. (And with the 30% off coupons, they beat most online prices.)

I just hope that Borders DVD and CD section doesn't start looking like Best Buy or Circuit City.

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