Borders, Target give Blu-ray a bigger footprint

Book chain sees opportunity in catalog titles

By Susanne Ault -- Video Business, 5/23/2008

MAY 23 | Borders and Target are among retailers markedly ramping up promotion and merchandising of the Blu-ray Disc format.

Electronics stores, as large providers of hardware and software, took an early lead in offering high-def products to customers. But until the end of the format war, other classes of retailers, such as bookseller Borders and mass merchant Target, had been among those featuring relatively slim BD displays.

Through late last year, a selection of Borders stores sold BD and HD DVD in a few scattered endcaps per outlet, limited to the DVD section. Borders has since completed a rollout of BD titles throughout its 511-store chain in the U.S. in March.

Target has likewise pumped up its in-rack BD displays. At least two Los Angeles-area outlets jumped from 60 BD facings in January to 90 title slots by May. The chain also is devoting more space in its newspaper circulars to the format, notes industry researcher DisplaySearch.

At Borders, each store will feature at least one ‘bay’ or rack fixture full of BD titles on one side. Larger stores can carry up to three bays. Additionally, Borders has created BD displays sitting near its highly trafficked entrances. Going forward, Borders will use these front-of-store displays to feature a BD new release alongside its standard-definition counterpart.

Overall, Borders’ BD library has at least tripled since last year, taking over floor space previously occupied by CDs and standard DVDs.

“We all breathed a sigh of relief when the format war was over,” said Patti Russo, director of music and movies at Borders. “With our high-end customer base more likely to be early adopters, we want to be there for them when they convert to Blu-ray.”

The chain hopes to carry its expertise as a catalog specialist over to its Blu-ray titles. “As studios release more and more catalog on Blu-ray, that will be an advantage to us,” said Russo. “We have a high market share in catalog. We are really excited to see international, British and Criterion films.”

Also, inside Borders’ new high-tech concept stores, Blu-ray is getting priority treatment.

“It does get price of place there,” she said. “Blu-ray has a very visible space in the DVD department.”

In June, Borders will be rolling out its first BD Father’s Day promotion, featuring 20th Century Fox Home Entertainment titles among others, priced at $19.99. Members of the Borders Rewards frequent buyer program are increasingly being treated with temporary discounts of up to 40% on BD titles.

Earlier this month, DisplaySearch especially took note of what appears to be the first time Target stamped a PlayStation 3 picture with a ‘Built-in Blu-ray’ message in its weekly circular. Further underscoring the BD component, Target headlined the ad ‘PS3 Blu-ray player does it all’ and featured both games and BD titles on either side of the console. Traditionally, Target has included BD titles in its circular solely within its DVD pages.

Paul Erickson, DisplaySearch director of DVD and HD market research, believes the chain’s emphasis of PS3 as a Blu-ray player could go a long way in spurring adoption.

“Many people don’t realize it is a high-definition movie player and are using it exclusively for games,” said Erickson. “And many others have low awareness overall of what Blu-ray is or what value it offers them.”

“Target is committed to providing our guests with the best solutions in home entertainment and electronics,” said a Target spokesman. “We believe the Blu-ray format currently offers our guests the best solution for their high-definition needs.”

He believes other retailers would benefit in similarly highlighting PS3’s BD abilities.

“Increased promotion of PS3 Blu-ray capabilities across all marketing assets, from box art, to point of sale, to media campaigns, and even retailer promotions would be a good start,” said Erickson. “There are still going to be some consumers that will balk at the use of a game console for movie playback, whether due to form factor, looks or even just the principle of it. They might not be reachable, but the rest might respond favorably given the right messaging and the right push.”