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VHQ To Test Hardware Sales

5 Mar, 2003 By: Hive News

Canadian video chain VHQ Entertainment Inc. has launched a test project with Visions Electronics that will put entertainment hardware like DVD players and home theater-in -a-box' systems into Visions-branded store-within-a-store departments in VHQ's secondary market stores.

"This new hardware product allows VHQ to further solidify its position as an entertainment destination in secondary markets and will create a new revenue stream for the company,” said VHQ president and CEO Trevor Hillman. Our goal is to help convert our customers to DVD as quickly as possible, as DVD owners rent and purchase movies more frequently than their VHS counterparts. The best way to achieve this is to provide high quality players at reasonable pricing in markets where they are not readily available."

The test is reminiscent of a short-lived U.S. test in which Blockbuster Video put Radio Shack store-within-stores in a number of its units. Both companies decided the partnership did not yield enough benefits, but Blockbuster later added specific hardware to its product mix.

"Our association with VHQ will extend the Visions brand to markets that we are not currently servicing and we are very pleased to partner with another Western Canada-focused company," Said Richard Stewart, president of Alberta-basedVisions.

VHQ operates 50 stores in secondary and underserved urban markets in Alberta and Saskatchewan.

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