Wal-Mart to clean up its aisles.....bye bye blus

[jw]

Looks like Wal-Mart is taking its eco friendly approach to a new level...Bye Bye Aisle shippers, Yes those large overfilled corrugated cardboard Displays are a thing of the past for Wal-Mart Aisles. Merchandisers are concerned as these increase sales and seldom need filled as they are heavily stocked from the release day.

Walmart eliminates corrugate to clean up stores

PHYSICAL: Mass merchant adopts clear aisle initiative

By Susanne Ault -- Video Business, 7/31/2009

JULY 31 | PHYSICAL: Walmart stores nationwide are adopting a clear aisle merchandising strategy, including the elimination of corrugate displays for DVD and Blu-ray Disc from store floors.
Walmart’s clean floor policy impacts many vendors, not just studios, who rely on corrugate displays to help push their product to consumers, and some studio executives are fearful that the no-corrugate policy will hurt their business. Although statistics seem hard to come by, the general studio consensus is that a title in corrugate will sell significantly more than that same title placed only on a shelf. Corrugate displays hold a greater depth of copy, with minimal competition from other titles in the customer’s line of sight.
“It has been very helpful,” said one studio source. “As soon as you take a product and take it out of a normal place and put it into a dedicated area outside, chances are you’ll get an uplift from that.”
Such ‘clean action alleys,’ as many Walmart vendors have dubbed the initiative, have already rolled out to a number of stores. Walmart expects to complete its layout revamp, also including the switching around of category locations, as early as spring 2010, according to studio sources.
Walmart spokeswoman Melissa O’Brien confirmed that the chain was in the middle of store redesigns, including making over aisles. She said “many stores” will be affected but declined to elaborate on a timeline.
“Our efforts to move to wider, more spacious aisles point to improvements we are making overall in our shopping experience for customers,” said O’Brien.
Because Walmart commands a 30% to 45% share of the DVD sell-though market, depending on the title, there is hope mixed in with concern about Walmart’s merchandising decisions. The chain’s goal is to boost sales of all of its products with these design enhancements.
“Of course, studios are concerned, but Walmart is not putting out this policy in order to do less business,” said the studio source. “They are doing it because they think they will improve business. If they make shopping a better experience, people will come more often.”
Another studio source agreed. “There is apprehension among groups that business could potentially drop. But in Walmart we trust, so we are trusting in their decision process.”
Walmart isn’t the only one looking to move away from corrugate. Target has never incorporated it in a big way inside its stores. Grocers have been moving away from using the displays for the last couple of years.
Although they can help drive product buzz, corrugate displays require labor to manage correctly. Cleaning around them can be another hassle.
“The employees can get lazy” and not refill empty slots, said a retail source. “But stores don’t like having half-full displays, so it will wind up getting pulled off the floor. And that can create return problems.”
Kansas Blockbuster franchisee Major Video has stopped bringing in corrugate for its stores since last fourth quarter mainly for cost reasons. With DVD sales slowing industrywide, the franchisee doesn’t want to commit to the usual 12-copy per store order of a title that is required for the chain to snag a corrugate display. These days, the retailer is ordering one to four copies per title for sell-through.
“We’ve passed on a lot of opportunities,” said John Sanders, product/operations manager at the franchisee. “When you can’t move the product, it’s a waste of cost. We could have spent that money elsewhere, maybe put it toward rental copies.”
However, Sanders might make exceptions for A-list fourth-quarter titles to enhance their appeal during that ultra-competitive frame.
It’s not clear whether Walmart will ever make exceptions for corrugate on exceptional titles, but studio executives hope the chain will find alternative hype devices, such as slotting copies of a hot title in many locations in-store on street date.

Source:VB

[KilloWertz]

The title of the thread is misleading. The article does not say they are not going to sell Blu-Rays anymore.

[Kuma]

theyre trying to clean up their store? So theyre only going to SMELL like shit now as opposed to looking like it too?

[jw]

Originally Posted by killowertz

The title of the thread is misleading. The article does not say they are not going to sell Blu-Rays anymore.

Thread topic: Wal-Mart aisles blus, basically no blus in the aisles....

[Batman1980]

This pretty much kills my topic from awhile back that Wal-Mart intended to expand blu-ray sales, it also will pretty much knock them out of 2nd place among B & M blu-ray merchants.

[pacificvibes]

They started doing this at the Walmart near me. I like it because the aisles used to be VERY VERY small and cramped in that area. Now we can fit three carts side by side

[Trace17]

This is a good thing for those customers trying to get their groceries and having to weave through a maze to get to the checkouts. But that's about it. The Wal-Mart about a mile from my house was just completely renovated. Their electronic section increased in size of about 40% (estimate, but took over the former fabric department) but with wider aisles and no shippers, the number of items they sell actually went down imo. They had about 8-12 ft of Blu-rays before. 4 ft now. DVDs and CDs also shrunk by a good margin. Needless to say, I never go to that Wal-Mart anymore. I didn't really like it to begin with.

[Clark Kent]

A newly renovated Wal-Mart near me just opened and shows this design philosophy. Isles are much more spacious, but product selection is definitely more limited. I do not know if this is a wise move.

[209Mason]

My Wal-Mart has already done this too... and I imagine that in order to fit everything back into the electronics department, they actually DID cut down on the number of Blu's they have...

There used to be one endcap with all NEW RELEASE Blu's... and then two shelves worth of 'catalog title' BLU's at the end of the DVD's aisle... that has now been cut down to one shelf... essentially cutting the number they carry by 1/3.

[bfellow]

My Wal-Mart basically start throwing out all catalog Blus in one section right next to the players on the walls. It looks like they're shrinking their inventory.

[Blu-Benny]

wal-mart is so freakin busy all the time, i'm glad there's gonna be more space in th aisles!!!

[STARSCREAM]

I never go to wm anymore. Worst selection outta all the stores on blu-rays.

[sfmarine]

Walmart is overpriced. I never buy blu's there. Amazon...and Best Buy.

[howarmat]

i avoid walmart like the plague. I stop once every couple months maybe. Like to get the 10 blus a couple weeks ago....that is about it. So many better places to go that have the same prices on things most of the time, i see no reason to visit that hell...

[Minimejer05]

Only bought ten dollar Blu's from Wal Mart. Wont be effecting me too much.

[jasonicus]

I noticed this in a Wal Mart near me. I bet the isles are getting larger for all of the clientele, if you get my drift. Anyway, their Blu selection sucks and is a waste of space.

[talstarone]

Went to my local Wal Mart after the Newest Harry Potter Started at the Theater.They wanted $24.95 to $29.95 for the previous Harry Potter Blu Rays.Yet Amazon is selling the same Blus for $16.95 to $19.95 for the same exact Harry Potter Blus.

In fact almost Every Blu I saw at WM was priced as High as BB is In-Store,and much higher then Amazon and BB offers Online.It just makes no sense to me.

Shouldnt WM think if they are selling Blu ray Players for a lower price that selling the Blu Ray Movies at a Lower Price would result in consumers adding a couple of Blus being purchased when they buy the Player since the prices would be lower,or at least as low as others.

[king_patrick_7]

Looks like they're just gonna have to start making the store even BIGGER now

[Chordata]

Originally Posted by killowertz

The title of the thread is misleading. The article does not say they are not going to sell Blu-Rays anymore.

Thought the same thing.

Ought to be changed.

Originally Posted by Wolverine1980

This pretty much kills my topic from awhile back that Wal-Mart intended to expand blu-ray sales, it also will pretty much knock them out of 2nd place among B & M blu-ray merchants.

I think your topic was already killed lol. Pretty much everyone in the thread responded that their local WM's selections were dwindling.

That's why when I read this thread's title, I thought: "So now it's official, no more BD's at WM." Then I thought about my coffee.

[MCT]

Originally Posted by Kuma

theyre trying to clean up their store? So theyre only going to SMELL like shit now as opposed to looking like it too?

ROFL

worst shopping environment ever. Not only does it look like trash, but it seems to attract the scum of society as well. You are guaranteed to see the absolute worst degenerates America has to offer once you walk through their doors. It really is a hellhole.

With great prices!