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Wal-Mart Shrinks DVD Department
DVDs apparently don't drive traffic to the store these days, and they can lead to clutter with promos on the hot new titles.
According to the WSJ:
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.
The studios can't be happy. Wal-Mart accounts for one-third of all DVD sales, and the category is struggling to begin with. Overall retails sales fell 13.5 percent to $5.4 billion during the first half of 2009, according to the Digital Entertainment Group. DVD rentals, meanwhile, are up. So are digital sales from online content providers.
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Article Topics
Blogs · Big-Box Retailers · Blu-ray · Digital Media · Blu-ray · Big-box Retailers ·About the Author
3 Comments (displayed in order by date/time)
By making more room for its “higher-end items,” I assume Wal-Mart plans to expand its selection of farmer overalls and old-man jumpsuits.
I am too confused by what “Higher End” means for Wal-Mart. I think they prey on consumer ignorance especially with their ad’s stating you can buy the “same” TV’s here at a lower price. Most consumers think all electronics are the same and if it is the same manufacturer it has to be the same product, right? Wal-Mart is using this to their advantage. Having recently walked through their electronics dept I was reminded of this seeing the low quality pictures and then what amazed me even more is that people thought they were so Hi-tech? I am a firm believer that you pay for quality. I don’t think a place that sells a $10 microwave is where you should shop for quality electronics!
“The studios can’t be happy.”
That’s because they think if they wish hard enough we will go back to when they had complete control over everything.
If the company thats responsible for 1/3 of all DVD sales is saying “hey! these are not moving like the used to” you would think that would send them a message.
I am going to outline what the future holds JIC the right executive reads this..
Hard copy media sales will slowly shrink and eventually disappear as download sales rise.
Thats it. 1 sentence. Time to pull your money out of the horse and carriage industry and invest in the automobile.
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