Blockbuster's plan for music in 264 stores

Source: MW

by Tim Ingham

 

Blockbuster believes it can emerge as one of the UK’s most important music retailers after coming back from the brink of extinction.

 

The group, which has traditionally concentrated on the DVD rental market, is repositioning itself as a convenience entertainment sales outfit across 264 stores after being saved from administration last month by new owner Gordon Brothers. Newly-appointed Blockbuster MD Gary Warren (pictured) - previously commercial director at HMV - told Music Week that he was keen to sell music in all of the firm’s remaining shops.

 

“We’re turning Blockbuster into the king of convenience in entertainment,” he said. “It’s early days, but ideally we’d like a presence of music in all our stores, from our Blockbuster Express outlets right up to our Blockbuster Megastores.”

 

Warren, who has 25 years of retail experience including a stint at HMV Canada, said that in terms of its music range Blockbuster would be aiming to attract “opportunistic purchasers”.

 

“In the main, we’d be looking at a chart offer and compilations, which will be very important,” he said. “Since the closure of Woolworths, compilations sales have dropped - we can bring some real support there. That range will be underpinned by a credible range of Best Ofs and [classic] albums.”

 

Warren explained that Blockbuster would retain its DVD rental business, but hoped to make up the category’s recent declines by substituting it with additional sales items such as CDs:?“Everyone’s aware that the CD format isn’t selling like it once did, but it offers additional, incremental revenue for us, so its decline won’t impact our core business like it would at, say, HMV. Looking at last year’s BPI [album] numbers, CD is still about 70% of the market.

 

“Suppliers are looking for outlets that can help them support CD -those who are not just wiping this format out. Putting it in front of the consumer is essential - that’s how you can win back lapsed music customers.”

 

Blockbuster is hoping to exploit opportunities created in UK cities where HMV has recently closed stores, such as Glasgow, and take advantage of its rival retailer’s opening hours. “Most HMVs close at 5.30pm, whereas Blockbusters go on to 10pm around the country,” said Warren.

 

“We could bring something important to the music market on a new release day - whether that ends up as a Monday or, as some [retailers] want, a Friday. Currently, suppliers market their new releases to customers, who pick that [marketing] up through their emails at work - but the customer is then not then able to buy CDs on the way home unless they go to a supermarket, which tends to be a once-a-week visit. By bringing Blockbuster into the loop on music, we can become a new, incremental out-of-hours channel for suppliers.”

 

Warren pointed to Sony’s popular Trevor Nelson Collection compilation as a recent ideal example of the music product Blockbuster would be looking to stock. “We want to be successful in music, and for that we need content that is not complex and offers a longer-term shelf-life,” he added.

 

Hilco announced its official acquisition of HMV this morning, signalling the rescue of 132 HMV stores for now at least.

I hope the plan comes to fruition, although they'll need a better location in Cheltenham - they're rather out-of-the-way, not to mention being in an area where private car-clampers lurk like piranhas... :(

Well don't park your car in the water then!

 

I'm pretty sure there isn't Blockbuster in Harrow town centre, although there is a small one in Pinner (assuming they keep it).

 

But do most people really find out about music from e-mails to their work address?