Supermarket video grew in '92
The new star category in the supermarket industry, the video department, is growing at a rapid clip, according to a study by Food Marketing Institute (FMI). Supermarkets offering videos increased their titles and tapes by 10 percent in 1991, and signs point to con-tinuing the fast growth pace. The report summarizes data from 59 food retailers in the United States with video rentals or sales in one or more of their stores. The respondents operate 1,450 supermarkets across the country.
Supermarket video's strong growth has captured grocery industry and video supplier attention. In 1991, U.S. supermarkets recorded $1.35 billion in video rental and sell-through, and the business could reach $1.5 billion in 1992. More than half of the companies in the FMI survey indicated that by 1993,100 percent of their stores will offer both video rentals and sell-through videos. Four in 10 say they'll increase the number of sell-through titles, which grew by 27 percent in 1991 alone. Almost three in 10 (28 percent) expect to increase the space for video rentals.
Other findings in FMI's Supermarket Video Operations Survey 1992:
- Supermarket operators carried an average of 1,417 titles and 1,846 tapes per store in 1991 and projected 1,573 titles and 2,088 tapes for 1992.
- Supermarket video departments had substantially more rental transactions (988) than sell-through transactions (70) last year.
- The square footage of selling area for video departments now averages 666 square feet, with larger companies (10 or more stores) averaging about 50 square feet more than the smaller ones. Linear footage averages 207 feet, with a slight difference between large and small firms.
- More than 80 percent of the companies currently merchandise blank videotapes and video games. Less than half carry the remaining video products - hardware rental, software rental, VCR accessories and other items.
- The supermarket video operators' greatest concerns are the cost of purchasing videos and the increased competition from other video outlets. They're also concerned about the growth of other entertainment alternatives, theft/shrink and space constraints.
- The majority of surveyed companies (78 percent) experience seasonality of demand for video. Weather, school and holidays are the primary factors.
- Just over one-third of the titles in supermarket video inventory are "B" titles.
The FMI study also provides information on rental inventory rotation, tape repair, video deletions, and video department security, shrink, staff training, buying decisions, merchandising and future issues.
Study finds public still wary of computers
The Harris-Equifax Consumer Privacy Survey 1992 has found that most Americans acknowledge that computers have brought benefits to society, yet they still consider some uses of computers as threats to personal privacy.
Similarly, the majority of Americans believe it is all right for companies to check public record information on consumers applying for credit, auto insurance or jobs, but believe it is not all right if the consumer has not initiated a transaction.
Other findings include:
- data supporting the practice of stores inquiring into aconsumer's check-cashing history
- some negative response about the degree of protection of personal information to be expected from business in the future.
Conducted in June 1992 by Louis Harris and Associates for Equifax, the latest survey is the second annual update to the 1990 study The Equifax Report on Consumers in the Information Age. It reveals that consumers see benefits and dangers surrounding uses of computers and in the availability and use of public record information by businesses and individuals.
- Most Americans acknowledge the benefits that computers have brought to society. Almost four in five (79%) agree that "computers have improved the quality of life in our society." Eighty-nine percent agree that "computers give people more convenient access to useful information and services."
- At the same time, most Americans also acknowledge that present computer uses pose dangers to personal privacy. Almost seven in ten (68%) Americans agree that "the present uses of computers represent a threat to personal privacy.
- Regarding public records, the majority of Americans believe it is all right for companies to check public record information of consumers applying for credit (71%), auto insurance (72%), or a job (75%).
- On the other hand, the public is much less likely to say it is all right to have individual public record information available to private investigators (34%), companies who mail people information about products and services (34%), and the media to publish information about public figures (28%).