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Blockbuster to close up to 1000 locations

Written by Andre Yoskowitz (Google+) @ 16 Sep 2009 15:28 User comments (17)

Blockbuster to close up to 1000 locations Blockbuster has announced it will be closing up to 1000 of its retail stores over the next 15 months in an effort to cut costs and "improve four-wall profitability".
The SEC filing states that the video rental company will be closing most unprofitable locations, which account for about 15 percent of the company's 7000 overall stores.

About 300 stores will be closed this year as "normal closures" and another 350 will be closed as "accelerated closures." Next year will see about 100 "normal closures" and another 150 "accelerated closures." The overall number will total 900-1000.

"All these stores are candidate stores," said Blockbuster spokesperson Randy Hargrove, via CNet. "Although we may in fact close that many stores, if we can renegotiate leases or remodel stores to make them more profitable, that number might go down."

At the same time, Blockbuster kiosks are expected to grow to 10,000 by the end of 2010, from their current 500.

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17 user comments

116.9.2009 15:55

Why don't you just close down already(and the rest of you national B&M chains) and let maw and pa stores make a come back...

216.9.2009 16:03

I totally agree. I'd love to see more profitable mom and pop stores around. I hope these bigger chains just stick to kiosks from now on. They'd probably be a bit more profitable since they are paying anything for labor, besides the guy stocking the things. Now if only they will get smart and add video games to these kiosks.....

316.9.2009 16:08

Originally posted by MReprogle:
I totally agree. I'd love to see more profitable mom and pop stores around. I hope these bigger chains just stick to kiosks from now on. They'd probably be a bit more profitable since they are paying anything for labor, besides the guy stocking the things. Now if only they will get smart and add video games to these kiosks.....
As long as ma and pa operations are not sued into the ground by the media mafia who wants a cut of their profit....

416.9.2009 17:31

their in store rentals are way overpriced and their employees are rude and uncaring,they should all close especially the store at union turnpike in flushing ny.

516.9.2009 20:27

Looks like a lot of teens will be outta work.

616.9.2009 21:27

Yeah I worked at two Blockbuster stores in early to mid 90's and I wouldn't also mind seeing the ma/pa make a comeback since one of my store managers took pride in closing two locally owned stores close to my area and bragged about it for years(seriously).He's like the distict/regional guy now but I wouldn't mind seeing Karma pimp slap that guy a good one.Selfish I know.

716.9.2009 21:44

I hope they close the one by my school, things would be interesting :)

They closed down the best "M&P" shop just down the road :(

816.9.2009 21:49

If its all kiosk, no new dvd's for 4-6(downloads still there) weeks because of the movie studio crying. Or maybe they will figure it out and stop yelling about losing pennies on the dollar.

917.9.2009 0:42

I'd love to see blockbuster go out of business, but I guess their Kiosks help keep redbox prices low, and redbox keeps netflix prices low...so I guess the Kiosk part of the business has some value (at least to those who never use it). As for their stores...a waist of air conditioning and land...they need to go away. As for M&P video shops...I can't say that I would go to one if one still existed. No M&P shop can possibly compete with the selection on netflix, let alone the "watch now" feature.

1017.9.2009 1:24

Originally posted by KillerBug:
I'd love to see blockbuster go out of business, but I guess their Kiosks help keep redbox prices low, and redbox keeps netflix prices low...so I guess the Kiosk part of the business has some value (at least to those who never use it). As for their stores...a waist of air conditioning and land...they need to go away. As for M&P video shops...I can't say that I would go to one if one still existed. No M&P shop can possibly compete with the selection on netflix, let alone the "watch now" feature.
Its not about competing with a online giant like NF, its about filling a need in a small area that's able to turn a small profit for the shop.

1117.9.2009 13:22

Find some Ewoks so we can all start dancing! lol

1217.9.2009 16:23

HI all
Did you guys know that Blockbuster had music stores in Southern California? Yes that's right "music stores" they had a listening section that would let you hear ANY cd in the store, the full album, with headphones. I would go in and ask for a rec from the employees.
I found music that i never would have found and left with 4-5 cd's, now that was good marketing!!

ahh the good old days
oh and this was around 2000

Frank

1317.9.2009 16:25

Originally posted by wanttono:
HI all
Did you guys know that Blockbuster had music stores in Southern California? Yes that's right "music stores" they had a listening section that would let you hear ANY cd in the store, the full album, with headphones. I would go in and ask for a rec from the employees.
I found music that i never would have found and left with 4-5 cd's, now that was good marketing!!

ahh the good old days
oh and this was around 2000

Frank
BB music was turtles music.

1417.9.2009 16:38

If they lowered there prices on merchandise I would actually go in and out with merchandise its normally go in say wtf then leave to a normal priced store.

Honestly after having racks and racks and racks filled with blu-rays and dvds you think they would have decent prices but its actually cheaper by about $20 a blu-ray and $5-10 a dvd at a place like wal-mart. Ive resorted to only going in a blockbuster when they have a game promo or i cant find a dvd to rent at any other store.

Wouldnt be missed though got enough other rental places...they actually shut down 5 other stores to rent from in a few years around my place. One which was like a block away from me wasnt happy about that.

1517.9.2009 16:45

BB music was turtles music.


thanks

I don't remember anything about "turtle" then but it's been a while. I would start buying cd's again if i could find a store like this. I always hated having to buy one cd for 2 songs.
As per the mighty google http://en.wikipedia.org/wiki/Turtle's_Records_&_Tapes
1993 (boy i was off on my date)

Also I grew up with the LP's/33 1/3 rpms .. much better sound IMO I could hear the transition between the highs and lows ... damn i miss my music ... anyway i'm rambling ... everyone have a good weekend
Frank

1618.9.2009 11:33

In store rental prices are ridiculous! I mean come on... For that price, why would anyone want to rent. The only justification maybe Blu-rays. Anyhow, i only go there when there's a promotion, like the summer's $10 unlimited gamer pass (for a week). Other than that, BBV is nice to have around, but won't get money from me for sure.

1718.9.2009 14:40

Originally posted by Gnawnivek:
In store rental prices are ridiculous! I mean come on... For that price, why would anyone want to rent. The only justification maybe Blu-rays. Anyhow, i only go there when there's a promotion, like the summer's $10 unlimited gamer pass (for a week). Other than that, BBV is nice to have around, but won't get money from me for sure.
The prices are high because by the time you pay for the brand,the franchise,and the location costs it basically prices you out of business.

If they would would just take 10-20% of all store profit for the brand and franchising cost the store would be able to stay n business and price point more effectively...

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