>>piracy is impacting on sales of new dvds… promotional dvds are fastest-growing sector… dvd and music are the largest categories…

CATEGORY BUYER, HOME ENTERTAINMENT, BATTERIES AND LIGHTBULBS, SOMERFIELD
Somerfield has driven the sales of studio catalogue CD titles in 2004-2005 and this strategy is set to continue.
Among the key issues affecting the home entertainment category is the impact of piracy on sales of new DVD releases. Nevertheless, DVD sales are strong and it is the largest and fastest-growing sub-category within home entertainment at Somerfield.
We find the most effective film and music promotions are price-led promotions on recent titles.
Regarding videos, we believe there will continue to be a market for catalogue VHS. However, recent sales figures indicate that VHS is reaching the end of its product life cycle, with consumers switching instead to the DVD format.
Home and leisure director, MORRISONS
In the past year, Morrisons has introduced a console games chart and has extended DVD promotions.
Within the DVD category, the key issues for us are maintaining value for money, the variety of our range and ensuring high levels of availability as well as clear offers for children and adults.
The fastest-growing sales in our home entertainment category come from DVDs sold in our promotional section, followed by console games. CDs and DVDs continue to be the company’s biggest sales categories within the sector.
While we have streamlined our video ranges over the past year because of slowing sales in VHS, we still have a good level of response on low-price products and children’s videos.
GAMES and MUSIC BUYER, SAINSBURY
Sainsbury is developing flexible and durable fixtures for all entertainment formats and looking to trial them later this year. We’re also considering off-shelf semi-permanent displays.
We have increased the hours invested on fixtures since January to improve merchandising.
Key issues affecting retailers include pricing, merchandising and the impact of piracy, theft and downloading.
DVD and music are the largest categories for us. DVD back catalogue, TV series and boxed sets are rapidly growing sub-categories, although console games is the fastest-growing.
Video sales are declining, but key releases and good value products continue to do well, so we will keep stocking them.
MARC MATTHEWS
andrew pleasance
CHRISTOPHER ROSE

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