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Blockbuster Will Remain in Consumer Electronics

Says it learned much from RadioShack vendor shop pilot program, including mistakes made

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The day after RadioShack announced the termination of its “Cool Things” vendor shop pilot program in 130 Blockbuster stores, Blockbuster announced that it would in fact develop a home entertainment electronic offering at its stores nationwide.

The decision, the company said, was made based on Blockbuster's overall work in consumer electronics — including the RadioShack trial — as well as the company's successful sale of other electronics offerings, including DIRECTV, over the past 16 months.

Blockbuster chairman and ceo John Antioco said his company gained “valuable insights” into consumer electronics “in a very cost-effective manner,” including some mistakes that both his company and RadioShack made in the pilot program.

According to Antioco, the RadioShack pilot program, which consisted of placing a miniaturized RadioShack store inside Blockbuster, included a wider breadth of product than Blockbuster customers wanted and required. Based on results from this pilot program and other tests, Blockbuster said it will customize its lineup of consumer electronics with a business model that provides for minimal capital investment and a more efficient use of store space and labor than the RadioShack in-store trial required. Blockbuster said it anticipates being in a position to introduce a selection of consumer electronics later this year.

“Compared to the RadioShack boutiques,” said Antioco, “we are developing a plan to offer an assortment of products that are much more closely aligned with our core business and include more name brands than the normal RadioShack assortment. Additionally, Blockbuster can leverage third-party supply chain arrangements to maximize margins and minimize investment in inventory.”

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