Movie Gallery to shut as many as 450 stores
By Danny King -- Video Business,10/29/2009
OCT. 29 | PHYSICAL: Movie Gallery might close as many as 450 of its eponymous and Hollywood Video stores, or about 14% of its total, by the end of the year, as the No. 2 U.S. movie-rental chain struggles against increasing kiosk and by-mail sales by competitors such as Redbox and Netflix.
Movie Gallery, which has about 2,900 units, has closed 250 stores since the beginning of last month and might close another 200 by year end, the company confirmed today. The company has said it would shut 200 of its Game Crazy stores this month.
Movie Gallery has faced growing competition from U.S. movie-rental kiosk leader Redbox and by-mail leader Netflix since emerging from Chapter 11 in May 2008. In the past few weeks, Movie Gallery set up a “real estate hotline” for its landlords that promised a 48-hour response to their inquiry, implying the chain has had trouble keeping up with its rent payments. One landlord told Video Business that the chain was 20 days late paying rent to him.
The closures were reported by Bloomberg News earlier today.
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| Submitted by: | Jack Smith 11/21/2009 7:51:24 AM PT |
| Location: | South |
| Occupation: | SM |
Heard of some stores closing (1 closed y'day I think), 1 that probably needs to be closed and the other is very busy store location (all MG stores). SM said the land lord is the one who came in to say corp had finally after 4 weeks, told landlord that these 3 stores where being closed. SM was shocked to hear it, and still unsure what to say to the staff since nothing has been confirmed.
| Submitted by: | long time employee 11/21/2009 7:39:47 AM PT |
| Location: | south |
| Occupation: | sm |
To all Movie Gallery & Hollywood Video people:
It is time to wake up and smell the coffee not to
keep our noses plugged!!
Something is happening that is not good and I believe
it will be sooner rather than later!!
In all my years with the company I have never seen anything like what is happening now.
| Submitted by: | The guy (corrupt@moviegallery.us) 11/21/2009 12:48:09 AM PT |
| Location: | somewhere |
| Occupation: | working for the man |
type in google news:"movie gallery download technology"
"Movie Gallery Inc. will pilot new technology that lets customers download movies and TV shows from in-store kiosks to USB devices.
Digiboo LLC, a Los Angeles-based digital media company, will place up to 100 versions of its digital kiosks in Hollywood Video and Movie Gallery stores nationwide.
The program follows Movie Gallery’s plans to reinvent itself as a leading-edge entertainment destination. Eventually, the company hopes to rent classic and other movies through kiosks, which will allow it to free up thousands of square feet of retail space."
Thank you inventor and film legend MR. MORGAN FREEMAN!
Essentially, we are being replaced for a more cost effective means of doing business: automated machines! Now granted this isn't the true cause of all this but isn't it funny in an ironic sort of way? That came out 14 hours ago from the time of this post. The real reason, as we all know, was simply an inability (or severe deficiency in the knowledge of basic business economics and thus) to evolve in an evolving industry. They realize now,it seems, that they got behind in the game and in order to have a chance at surviving they must cull herd. Case and point.
Thanks a lot, Santa Clause for the tip off! I'll definitely be listening in. Tune in whoever can! I've told everybody I work with about this page...I call it "The Underground" or "The Wire". LOL Not that there's any intention or means of rebellion... LOL. But it is important that we all stay informed! Keep posting! Thanks all!
-The guy working for the man
| Submitted by: | Go Go Lemon 11/21/2009 12:45:52 AM PT |
| Location: | California |
| Occupation: | Unemployed SM |
Happy Holidays HV!
It's time for the annual gift card contest at HV. What a better way to brighten up the holiday season for your "have fun and make the day" DM! What DM wouldn't want the gift of having yet another program/promotion or cut in labor hours to threaten SMs with on a daily basis?
Picture Black Friday in the store. In order to make labor, there's one lone associate working frantically at the cash wrap. The guests in line stretching all the way back to the core collection are getting antsy, as they still have lots of other stops to make today. Some are getting loud. A few have walked out. The associate is going as fast as they can.
First they jump on the intranet to print out a didja see sheet. There could be a write up if they don't print a minimum each week. Most go in the trash. We don't recycle.
Then move right into the power play pitch. Hopefully, the guest understands enough English to get a semi-confused idea. If they get power play, the games will surely come back late the first time. At the same time, instead of the four dvds they planned to rent today, they leave one at the counter for the associate to put back sometime later when the crowd lightens up. Who is going to pay an extra $5 for a movie when they already spent $25? One of the kids will not get to see her movie tonight.
But, wait! There's more! How about a gift card? No? Not even $5 for Starlight? There's a contest, and a daily minimum sales goal that if not hit could result in progressive discipline, up to and including termination. Numbers are called in twice a day.
Don't forget concessions. Entertainment Weekly? Eight FREE issues! And for the finale, remember, if you don't get playguard and you damage the game or dvd....
Meanwhile, as the friendly associate engages at the counter, two thugs are in the corners of the store not visable from the cash wrap breaking open dvd cases. If you have high shrink, your store will close.
Unfortunately for the SM, fewer and fewer customers are falling for the scheme. Thier hometown store closed 3 months ago, the next closest one last month. Now, they have to get on the freeway and pass three BB stores on the way. They won't be coming in as often and probably will get Netflix anyhow.
And gift cards? It seems pretty likely that not many customers want to get conned into buying a piece of plastic that has a shorter shelf life than a jar of mayonaise out in the sun.
But on the bright side.... Think of the money store managers can save by handing out written warnings instead of Christmas cards to the associates!
Alas, for me this is just a dream. My store closed last week. Quick closes are a fun time. We get to have a pizza party.
Happy Holidays to my surviving friends at HV, my former team that stuck it out til the end, and our neighborhood customers that helped make my day.
| Submitted by: | Go Go Lemon 11/21/2009 12:45:45 AM PT |
| Location: | California |
| Occupation: | Unemployed SM |
Happy Holidays HV!
It's time for the annual gift card contest at HV. What a better way to brighten up the holiday season for your "have fun and make the day" DM! What DM wouldn't want the gift of having yet another program/promotion or cut in labor hours to threaten SMs with on a daily basis?
Picture Black Friday in the store. In order to make labor, there's one lone associate working frantically at the cash wrap. The guests in line stretching all the way back to the core collection are getting antsy, as they still have lots of other stops to make today. Some are getting loud. A few have walked out. The associate is going as fast as they can.
First they jump on the intranet to print out a didja see sheet. There could be a write up if they don't print a minimum each week. Most go in the trash. We don't recycle.
Then move right into the power play pitch. Hopefully, the guest understands enough English to get a semi-confused idea. If they get power play, the games will surely come back late the first time. At the same time, instead of the four dvds they planned to rent today, they leave one at the counter for the associate to put back sometime later when the crowd lightens up. Who is going to pay an extra $5 for a movie when they already spent $25? One of the kids will not get to see her movie tonight.
But, wait! There's more! How about a gift card? No? Not even $5 for Starlight? There's a contest, and a daily minimum sales goal that if not hit could result in progressive discipline, up to and including termination. Numbers are called in twice a day.
Don't forget concessions. Entertainment Weekly? Eight FREE issues! And for the finale, remember, if you don't get playguard and you damage the game or dvd....
Meanwhile, as the friendly associate engages at the counter, two thugs are in the corners of the store not visable from the cash wrap breaking open dvd cases. If you have high shrink, your store will close.
Unfortunately for the SM, fewer and fewer customers are falling for the scheme. Thier hometown store closed 3 months ago, the next closest one last month. Now, they have to get on the freeway and pass three BB stores on the way. They won't be coming in as often and probably will get Netflix anyhow.
And gift cards? It seems pretty likely that not many customers want to get conned into buying a piece of plastic that has a shorter shelf life than a jar of mayonaise out in the sun.
But on the bright side.... Think of the money store managers can save by handing out written warnings instead of Christmas cards to the associates!
Alas, for me this is just a dream. My store closed last week. Quick closes are a fun time. We get to have a pizza party.
Happy Holidays to my surviving friends at HV, my former team that stuck it out til the end, and our neighborhood customers that helped make my day.
| Submitted by: | Working_4_the_man (corrupt@moviegallery.us) 11/21/2009 12:18:44 AM PT |
| Location: | somewhere |
| Occupation: | mga????? |
Thanks everybody for sharing! It's good to know that in hard times, there are still honest, intelligent, and resourceful people who are determined not to see their integrity compromised for these brazenly arrogant and irresponsible companies and their CEO's.
When I go to smityas twitter page and read that he's been out parading around having the time of his life bowling and catching the world series...well, it makes me smile and think that perhaps this is nothing more than tinker toys for these guys. Glad to know everything is peaches and cream for you! Happy to know you can sleep sound at night, sherif!
Meanwhile, my DM is coming to the store looking like hell, riding my ass to "get those powerplays out" and all around making everybody's life miserable. And it would seem that he hasn't got a clue as to what's coming or why all this is happening! Well my friend's it would seem the answer is here. This just in! (Please read the next comment.)
| Submitted by: | Santa clause (santaclause@northpole.com) 11/20/2009 9:12:34 PM PT |
| Location: | north pole |
| Occupation: | gift giver |
This one is not requiring a code--thats why im telling everyone about it if they want to listen in--
| Submitted by: | Santa clause (santaclause@northpole.com) 11/20/2009 9:12:30 PM PT |
| Location: | north pole |
| Occupation: | gift giver |
This one is not requiring a code--thats why im telling everyone about it if they want to listen in--
| Submitted by: | Joe Schmuck 11/20/2009 5:46:28 PM PT |
| Location: | Rentailer |
| Occupation: | Myanmar |
These conference calls usually require you to enter an access code to gain entry to the conference call.
If you or anyone else gets to listen, let us know what is going to haooen & what is said.
| Submitted by: | Santa Clause (s.clause@northpole.com) 11/20/2009 3:21:11 PM PT |
| Location: | freezing north pole |
| Occupation: | gift giver |
To disgruntled ex and other employees FYI conference call with CEO Sherif is to be held on November 23--
3 pm (eastern) 2 pm (central) 1 pm (mountain) and noon (pacific) 1 877 215 0078..i got this from inside info all management and their teams are to join. Just thought maybe some ex employees would want to listen in---
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