FMI SHOW

CHICAGO - DVD kiosks rank No. 1 among categories that could contribute to untapped profits over the next three years at the front end of supermarket and mass merchant stores, according to research from Meridian Consulting Group, Westport, Conn.The study found that, on average, front-of-store categories like kiosks represent a $2-$4 billion opportunity for these retail stores over the next three years.

CHICAGO - DVD kiosks rank No. 1 among categories that could contribute to untapped profits over the next three years at the front end of supermarket and mass merchant stores, according to research from Meridian Consulting Group, Westport, Conn.

The study found that, on average, front-of-store categories like kiosks represent a $2-$4 billion opportunity for these retail stores over the next three years. The findings were released by Meridian and Coinstar, Bellevue, Wash., at the 2006 Food Marketing Institute Show here last week.

The net income per square foot for many of the top front-of-store categories is much higher that of other store areas, said Ted Taft, managing director, Meridian. DVD kiosks bring in about $450 per square foot annually compared to $30 for average grocery items, he said.

To call attention to the front of store and make it a destination for consumers, retailers should group together all offerings that are part of what Taft called the "electronic economy" and place them closest to the door.

These include any pay-as-you-go product such as coin conversion, prepaid cards, DVD kiosks, as well as amusement vending and rug cleaning, he said. "These categories create an immediate transaction and an opportunity for incremental store trips based on getting rid of heavy change, reloading prepaid cards and returning DVDs."