CHANDLER, Ariz. -- Bashas' Markets here is boosting its video traffic by offering a free tape with every five that customers rent. This merchandising tactic goes one better than the typical rent-10-get-one-free programs that dot the industry. It also sets Bashas' video program apart from the other chains in the hotly competitive Phoenix market. "Instead of going with a super day of the week when we lowered prices, we started this program and it's working very well," said Jeff Manning, vice president of general merchandise. Bashas' launched the program in June when it began distributing frequent renter cards to video customers. Service center clerks stamp the cards each time a rental is made. "Rentals are up substantially since we started the program," said Manning. Customers can use any combination of catalog and new releases to fill the cards, he said. For example, "you can rent five catalog titles and then get a new release as the sixth rental," he noted. Customers also can get all six tapes in one transaction, he said. As part of its new merchandising thrust in video, Bashas' also has standardized its rental rate structure. "Before we had different rates in our various markets. By putting together a standardized program, we felt it would give us a better competitive advantage," Manning said. New releases are $2.49 a night, with catalog titles at 99 cents and games at $1.99. Together with the frequent renter program, "We felt that this made us competitive every place we needed to be," he said. Manning has been working closely with Bill Glaseman, Bashas' video specialist, on plans to expand the video program. Glaseman joined the retailer last year when it bought the inventory and other assets of its rack jobber, Family Home Video, San Fernando, Calif. Live inventory, 800-square-foot departments with 4,000-tape inventories are on the drawing boards, noted Manning. The retailer's largest department is now 200 square feet with about 1,000 tapes. "Video is doing great, especially as we've become more committed to it, and our commitment is going to increase."
Since buying out its rack jobber, Bashas' has increased its copy depth on new releases from one or two tapes per title per store to four to 10, he said.
