Retail gives high-def more presence

Stores, including Target, enhance their in-store offerings

By Susanne Ault -- Video Business, 10/27/2006

OCT. 27 | Across the country, retailers are enhancing high-definition product offerings for the fourth quarter.

The Video Buyers Group’s 1,700 rentailing members will launch HD DVD and Blu-ray Disc title sections in November. VBG hopes to take advantage of the ongoing absence of high-def titles at competing bricks-and-mortar Blockbuster Video stores.

Ultimate Electronics is shifting emphasis to Blu-ray through the fourth quarter, with merchandising dedicated to newer Panasonic and Sony players. Toshiba HD DVD player models, which launched earlier in the spring, are moving from individual store displays into Ultimate’s regular DVD player sections.

Meanwhile, Target this month began rolling out HD DVD and Blu-ray discs in it stores, with signage highlighting key differences between the formats.

“I applaud what [Target] is doing,” said Jeff Baker, Warner Home Video senior VP and general manager of theatrical catalog. “I haven’t seen that kind of consumer attention before, [regarding] what they are doing to educate people about high-definition software.”

For example, a sign at a Los Angeles-area Target explains that HD DVD has three times the capacity of standard DVD, and Blu-ray has five times the capacity. Also, the HD DVD and Blu-ray sides of the sign warn shoppers they must own format-compatible hardware to play titles.

Additionally beneficial, many Target high-def displays are housed within the stores’ heavily trafficked new release section.

Target did not return calls for comment, but other supplier sources confirmed the chain was launching this product in this fashion at a number of its stores.

“This is a company that really isn’t selling hardware yet, but they’ve experienced some great sales,” a studio source said of Target. “This means that retailers are really starting to embrace high-def.”

VBG stores also are emphasizing education in their HD DVD and Blu-ray bows. A free in-store magazine will feature several pages promoting titles on both formats and their explaining unique features. Several shelf talkers also will inform consumers about the formats.

“Our surveys show that consumers don’t know what this is about,” VBG president Ted Engen said. “We are committed to getting the formats out of the chute."

At VBG member chain Total Entertainment, store buyers are ordering about one rental copy each of all available HD DVD and Blu-ray titles per outlet. To start, the 30 largest market outlets of Total’s 82-store chain will carry these high-def titles.

The remaining VBG stores are strictly ordering the elite titles for rental, including Oct. 30 release Mission: Impossible III and Nov. 28 release Superman Returns, which will street on standard DVD, Blu-ray and HD DVD simultaneously.

Engen believes VBG will offer high-def title sales as hardware penetration rises.