Musicland, Sears Expand Successful DVD Partnership
11/17/98
PR Newswire
(Copyright (c) 1998, PR Newswire)
MINNEAPOLIS, Nov. 17 /PRNewswire/ -- Musicland Stores Corporation (NYSE: MLG) and Sears, Roebuck and Co. (NYSE: S) have renewed and expanded their exclusive affiliation to promote the Digital Video Disc (DVD) technology.
The partnership, now entering its second year, teams Musicland Stores Corporation's Suncoast Motion Picture Company and Sam Goody stores with Sears, Roebuck and Co. The stores offer unique retail positioning; 90 percent of Sears stores match up with Suncoast and Sam Goody mall locations. Together these more than 2,000 Suncoast, Sam Goody and Sears stores nationwide are working to cross-promote DVD.
The program has expanded from last year with the addition of another premiere movie studio (Columbia TriStar) and four leading DVD hardware manufacturers -- Pioneer, Toshiba, Sony and Panasonic.
Consumers who purchase DVD hardware at any Sears Brand Central department are entitled to a free DVD movie of their choice (from Columbia TriStar or Warner Home Video, a $29.99 value) from Suncoast or Sam Goody stores. Once consumers receive their free DVD movie, Suncoast and Sam Goody stores invite them to build their DVD movie library with the gift of a $75 DVD savings book. In addition, consumers receive special sale pricing on their next 16 DVD movies.
"DVD has expanded faster than expected, with the format accounting for nearly 10% of our total video sales," said Archie Benike, Musicland's vice president of marketing. "DVD will be the hottest gift item this season, and the national affiliation between Musicland Stores Corporation and Sears, Roebuck and Co. gives holiday shoppers the convenience of a DVD destination right in their own mall."
"Our joint effort has done an excellent job of increasing consumer awareness of DVD technology," said Chuck Cebuhar, Sears' divisional vice president of home electronics and home office. "We are happy to enter the second year of this exclusive program that offers consumers valuable savings to start their DVD movie collection."
Based in Minneapolis, Musicland Stores Corporation is the leading specialty retailer of home-entertainment software products in the United States. As of September 30, 1998, the company operated 1,337 retail stores in 49 states, Puerto Rico, the Virgin Islands and the United Kingdom under the names Sam Goody/Musicland, Suncoast Motion Picture Company, Media Play and On Cue.
With its network of more than 830 full-line department stores and 2,500 off-the-mall stores, Sears is a leading retailer of apparel, home and automotive products and related services for more than 60 million households throughout North America. For more information, visit Sears' web site at sears.com
/CONTACT: Brant Skogrand, 612-931-8325, bskogrand@musicland.com, Tim Scully, Investors, 612-931-8246, tscully@musicland.com, both of Musicland, or Kathleen Connelly of Sears, 847-286-4644/ 07:00 EST |
