ST. LOUIS -- Sight & Sound Distributors here has bought U.S. Video, Aurora, Colo., the largest racker of supermarket sell-through programs in the country, said Ron McMillin, vice president of sales for the Western region. The deal adds U.S. Video's 3,000 supermarket outlets to Sight & Sound's 2,500, said McMillin, who is based in Salt Lake City and is in charge of the video distributor's supermarket sales program.
U.S. Video only services supermarkets. Food Lion, Winn-Dixie, Vons, A&P and some Kroger and Albertson's divisions are among its more prominent accounts, according to industry observers. "We are convinced that supermarkets are going to be an even bigger player in the video business in the future. We want to be on the A team that brings them these products," said McMillin. The distributor is looking for other acquisitions in distribution and racking that will expand its sales efforts to supermarkets. "We want to do everything we can to enhance our position in the grocery trade," he said. Sight & Sound is a full-service distributor that offers rental and sell-through videos, along with related products such as games, multimedia and audio books. Besides adding customers, the deal gives Sight & Sound a state-of-the-art distribution facility designed to handle sell-through products, said McMillin. "They are highly automated and are able to do a lot of things we have a tougher time doing in our warehouse, because we are so oriented toward rental products," he said. "This year, our sell-through business will probably be as big as our rental business. We think we can learn a lot from U.S. Video."
The management team and other employees at U.S. Video are expected to stay in place, he said, and the company will probably keep its name. Key executives at the racker are Bob Perrine, chief operating officer; Dean Holzkamp, vice president of sales and marketing, and Lauren Naylor, vice president of procurement and distribution. "While some programs and policies differ, the two companies' core values and mission statements are almost identical. Both companies place a big emphasis on helping their customers improve their profits, while providing the best possible service and support," said McMillin. Sight & Sound plans to move its multimedia division into the U.S. Video facility, he noted. "There are some real synergies that both companies are going to enjoy," he said. "By the fall selling season, we plan to have an expanded menu of services to offer all customers." The acquisition of U.S. Video will enhance Sight & Sound's ability to round out its sell-through product programs and to continue to add value to its customer operations, added John Jump, senior vice president of sales at Sight & Sound. U.S. Video officials also lauded the deal. "With Sight & Sound's wide range of product offerings, the acquisition is an opportunity for us to bring a variety of new programs to our current grocery customers," commented Holzkamp.
"This acquisition is another step in Sight & Sound's strategy to offer a complete line of entertainment products and services throughout the supermarket channel," said McMillin.
"We want to assist supermarkets in the development of all aspects of the entertainment business," he added.
