June 13, 2005

The end of VHS

800 pound retailing gorilla, Wal-mart, is in the process of discontinuing the sale of VHS products.

Hollywood Reporter, via Yahoo!:

Industry sources said Wal-Mart Stores Inc. will be out of the videocassette business soon after the 2005 holiday season.

In the mega-chain's next September "reset" -- a thrice-yearly process in which video department planograms are redrawn and between 20%-40% of titles are replaced -- the company will realign its chainwide VHS inventory based on customer demand.

"In some markets, there will be more (VHS), in some markets there will be less," according to one high-ranking studio source who asked not to be named.

At a subsequent reset in February, VHS most likely will be cut out, according to the source. After February, "it is unlikely there will be any VHS left in any Wal-Mart store," the source said. There are more than 3,600 Wal-Mart stores in the U.S.

Posted by jackhodgson at June 13, 2005 10:18 AM