Walgreens tests Redbox kiosks

Drug store adds rental machines to 38 outlets

By Susanne Ault -- Video Business, 10/12/2006

OCT. 12 | Redbox DVD rental machines have moved into Chicago and Houston area Walgreens drug stores on a test basis.

At this point, there are machines located at 38 Walgreens outlets, confirmed Redbox spokeswoman Kristin Zanini. She declined comment on whether the expansion represents the beginning of a national Walgreens rollout.

If tests prove successful, Walgreens would represent a new retail partner for Redbox, which rents new release DVDs for $1 per night.

Walgreen's spokesman Michael Polzin said that this is the first time these 38 stores have offered DVD rentals. The stores have sold DVDs for some time.

In regards to Redbox peformance at the chain after four weeks, Polzin said, "We are going to wait and see the results before we make any decision about rolling it out further."

Co-owned by McDonald’s, Redbox is in the middle of a significant growth spurt.

At year’s end, Redbox officials have said they hope to spread its machines into 2,000 locations, including grocery, drug stores and McDonald’s restaurants (VB, 8-8).

In five years, Redbox hopes to be placed in 20,000 locations worldwide.

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