Giant Eagle switches to Redbox kiosks
Grocer to replace its in-store rental departments
By Susanne Ault -- Video Business, 10/5/2007
OCT. 5 | One of the few grocers to house a relatively large permanent in-store DVD display, Giant Eagle is replacing its rental departments with Redbox kiosks.
Over the last several months, Redbox machines have been installed in 106 Giant Eagle locations, including five of the grocer’s GetGo locations. That will soon extend to more than 200 Giant Eagle storefronts, spanning 90% of the chain, in such markets as Pittsburgh, Cleveland and Akron, Ohio, according to Gary Lancina, Redbox VP of marketing.
Chuck Porter, who has led Giant Eagle’s rental department for some time, will stay in that position and oversee the new Redbox structure, said Daniel Donovan, grocery chain spokesman.
Giant Eagle is trying to modernize its video rental operations by embracing Redbox, said Donovan.
“In general, customer interests have moved away from renting videos in bricks-and-mortar rental stores and toward both video purchasing and newer, more convenience-oriented rental services,” namely via online and kiosks, he said. “As Giant Eagle changes its video business with these trends, we have made the decision to transfer our video rental offerings away from our Iggle Video departments and focus on both our video sell-through offering as well as our Redbox rental kiosks.”
Redbox machines typically hold each week’s Top 100 new releases, offering a smaller selection of titles than what was offered for rental at a number of Iggle Video departments.
However, customers can rent DVDs from any Giant Eagle Redbox location and return them to any Redbox kiosk nationwide. Redbox now spans more than 4,900 locations at McDonald's restaurants and various grocery chains.
Also, Redbox’s $1-a-night pricing is cheaper than most bricks-and-mortar rental offerings.
Giant Eagle is placing its Redbox machines within the grocer’s main lobbies or right outside the stores’ main front entrance.
Until recently, Redbox’s grocery expansion has primarily been into outlets that previously never offered extensive DVD rental offerings.
