Like many of us, I used to be a regular customer of Blockbuster … when they were the only game in town. But then came that handy red envelope in my mailbox (promising, among other things, no more late-night dashes to the drop-off box to avoid late fees) and I was sold.
It’s no secret that Blockbuster has struggled to find its way as Netflix, Redbox kiosks and on-demand cable services took emerging technology to become more relevant in our busy lives. The Dallas-based company has been shuttering stores while same-stores sales dropped 14 percent in the fourth quarter of 2009.
According to chairman and ceo Jim Keyes, Blockbuster Inc. is in a “transformation” while it builds its Blockbuster Express kiosks program, introduces a new a la carte by-mail program and launches Blockbuster On Demand. “The next 12 to 18 months will remain challenging as we balance the secular decline of a single channel with the ascension of emerging channels, such as vending and digital,” he says in a press release to investors announcing the company’s fourth quarter and fiscal-year 2009 financial results.
Taking this all in, I wondered yet again why I stopped using Blockbuster and really, it came down to convenience. Some of those new initiatives sound like they’re addressing that issue. But I’ve got another idea. (Not that they asked, but I’ll put it out there anyway.)
We all know grocery is the one sector that’s done relatively well in spite of this recession. I know the supermarket is the only store I visit on a weekly (and sometimes more) basis. Some supermarkets share floor space with branded coffee counters, health clinics, jewelry shops and photo services. So why not a Blockbuster shop-in-shop? I, for one, can’t imagine anything more convenient than grabbing my weekly groceries, a pint of Ben & Jerry’s and that latest release that we missed in the theaters because we have kids and don’t go out to movies anymore – all from one location.
Retail partnerships aren’t a new idea. But maybe it’s time to look for some new synergies as retailers plot their way to a better reality.