Standing out in the supermarket
SUPERMARKET CHANNEL GUIDE: 4Kids aims high with ‘DVDouble Shot’
By Susanne Ault -- Video Business, 5/1/2006
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Many grocers demand that stock from all product vendors be 100% returnable. This can mean as much as 50% returns on a DVD title, which is significantly higher than the 20% retail average.
To secure sell-through activity, suppliers are devising product that marries family content with attractive price points.
4Kids Entertainment believes it’s on track to sell 50,000 units, or 90% of its initial shipment, of DVDouble Shot at Winn-Dixie. Most of Winn-Dixie’s 850 stores are carrying 96 copies of DVDouble Shot each. The titles, priced at $4.99 to $5.99, feature two episodes apiece of such kids’ shows as Teenage Mutant Ninja Turtles and Sonic the Hedgehog.
The titles were distributed into Winn-Dixie by the Garr Group, a grocery distribution/promotion specialist. “Moms are looking for impulse items that are inexpensive but quality,” says Emily Gottschalk, Garr’s CEO. “They need that birthday present on-the-fly or something to keep the kids occupied in the car.”
Gottschalk says grocers have long desired DVD product, which can offer double-digit profit margins versus the typical single-digit margins of their core food offerings.
But grocers can be wary of investing heavily in new releases, since they must accept slight to no margins in order to be competitive. Dollar product has been rolled out, but there is a sense that it cheapens grocers’ other offerings.
“We’re trying to find that sweet spot,” 4Kids director of home entertainment Joe Lyons says. Grocers “might put in the week’s hottest new Disney title, but anything [else] might just go in a big bin. We wanted to do something that stands out.”
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