LAS VEGAS -- As in years past, the 16th annual convention of the Video Software Dealers Association was the most significant gathering place for supermarket executives involved with video and other aspects of home entertainment, attracting the top chains in the industry from all over the country. The supermarket-specific highlight was a breakfast for industry executives, which attracted about 125 people.
General attendance at the July 9 to 12 show here was down to 12,000 from 13,000 last year largely because of consolidation at all levels of the video industry, but also because a greater than usual number of "walk-in" attendees came to last year's show in Los Angeles. But supermarket participation remained heavy and from all indications was up slightly, according to industry observers.
Among the big chains spotted at the VSDA show this year were Giant Eagle, Price Chopper, Furr's, Randalls, Schnuck, Pathmark, American Stores, Wegmans, Hannaford Bros., Dierbergs, Marsh, Harps, Genuardi's, Homeland, Oshawa, Southeast Foods, Grand Union, Coborn's, Bashas', Baker's, Boogaart's, Hughes, Gooding's, K-VA-T, Seaway Foodtown, Delchamps, Schultz Sav-O and at least nine Kroger divisions, as well as Dillon Cos., King Soopers and Fry's. There also were many independent supermarket companies represented, including Fuller Markets, Tom's Food and Ramey's.
Some sell-through-only chains were on hand, including Fred Meyer Inc. and Tops Friendly Markets, as well as wholesalers like Fleming Cos., Roundy's, Nash Finch and Supervalu's Studio 100 operation.
This year the VSDA show returned to Las Vegas, its home for many years before the trade group experimented with alternate locations the last two years. All retailers and exhibitors interviewed by SN were glad to be back in Las Vegas, despite the 100-degree temperatures and construction work going on at almost every turn.
The show will return there next July and for the foreseeable future, said Jeffrey Eves, president, VSDA.
The primary concern of supermarket retailers, as always, was the business aspects of the convention, and many were paying close attention to news about the new digital videodisc format, which was the talk of the show.
"DVD is sounding real good so far," said Clifford Feiock, video coordinator for Nash Finch Co., Minneapolis. "It's the most exciting thing we've seen at VSDA in a couple of years and it looks like a whole new market," he said.
Feiock was especially impressed with the turnkey kiosk program presented by PolyGram Video, New York, and its parent, Philips Electronics, Atlanta. It incorporates three players with carrying cases, rental product and a demonstration unit on attractive racking. Feiock told SN he made the decision to rent DVD largely based on the availability of the PolyGram program.
"The most impressive thing at the show has probably been the DVD demonstrations," said Tim Ambrose, video specialist at Genuardi's Family Markets, Norristown, Pa. The PolyGram program "is something we are seriously thinking about putting into our bigger stores," he said.
But others remain skeptical about the new technology. "So far I'm not as impressed with DVD as the studios are," said Randy Weddington, video specialist at Harps Food Stores, Springdale, Ark. "Selling at 6,000 players a week, how long is it going to take for it to reach VHS' penetration? That pace will speed up, but it is not off to a very auspicious start," he said.
There is "a lot of talk" about DVD, said Jamie Molitor, director of video operations at Dierbergs Markets, Chesterfield, Mo. "But nobody really knows what the score is."
"Last year, I spent most of my time in meetings with people I was already doing business with and I felt it was like business as usual and not a convention experience," she said. As a result of the changed priorities, she discovered some new smaller companies she might do business with and investigated point-of-sale software and fixturing opportunities. Additionally, "I found the seminars very informative on what is new and what I have to look forward to in the future," Molitor said.
Sharon DeSordi, video buyer/merchandiser at Grand Union Co., Wayne, N.J., found the show helpful, but sees room for improvement. "Certainly the VSDA event is built around the excitement of the video releases. But the future success of video requires much more than promoting sales opportunities," she said.
"As a first-time attendee, I'd say the overall efforts to disseminate information intended to educate and re-educate participants was substantial. But we need to see and hear more of it to keep pace with industry changes. The studio focus on the real issues of grocery retailers is a plus," DeSordi said.
