Looks like Movie Gallery, the parent company of Hollywood Video is shutting down 520 stores nation wide.
From the The Oklahoman via Trading Markets:
The financially-strapped Movie Gallery Inc. will shutter about 520 underperforming and unprofitable Movie Gallery and Hollywood Video stores...
Video store closings seem to be a sign of the times. Earlier this year, Blockbuster announced plans to close 282 stores in the United States...
A Hollywood Video store manager who wished to remain anonymous said his store has lost about 10 percent of its business to Redbox, the DVD-dispensing kiosk found at most McDonald's locations around the United States.
Now will always be first in line to defend the little mom and pop stores that are run out of town by the likes of Walmart and other multi-million dollar corporations. But this is different. Movie Gallery Inc. IS a multi-million dollar competitor to Netflix and Blockbuster. This isn't a case of the big guy squishing the little guy. As Jake Dollarhide, chief executive Tulsa-based Longbow Asset Management Co., said
"This is what happens when consumers' taste changes, because it's no accident Movie Gallery and Blockbuster are struggling. They're operating on an outdated business model,"
He is exactly right. Brick and mortar stores are outdated for JUST RENTING movies. If the customer is given the choice of being able to take their time deciding their rentals and get it delivered to their home or spending $3 a gallon gas to go pick over boxes on a shelf; convenience is going to win out. Now if brick and mortar stores were to offer the customer an added value, they may regain some of the market share.
Don't ask me what that added value could be. I am no marketing genius, but I do know that some candy at the counter is not adding much value.
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