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Redbox to Expand to Another 2,400 Kroger Locations

3 Aug, 2009 By: Chris Tribbey

More than 2,400 Kroger-operated grocery and convenience stores will add a Redbox DVD kiosk within the next year, thanks to an agreement between the companies announced Aug. 3.

More than 200 Kroger locations already carry the kiosks.

“Kroger has been a valued customer of Coinstar for a number of years,” said Gregg Kaplan, president and COO of Coinstar, Redbox’s parent company. “Our products are designed to deliver convenience and value to the consumer while increasing foot traffic for our retailers.”

Kroger-run stores include Ralphs, Fry’s, Dillons, Food 4 Less, QFC and Smiith’s

“This partnership with Coinstar will give our customers across the country access to new release DVDs for $1 a night,” said Paul Scutt, SVP of retail operations for Kroger. “Our shoppers tell us that the Redbox kiosks are an easy, convenient and affordable way to watch popular new movies at home with their families.”
Redbox kiosks at Kroger stores will replace those that were in the stores from NCR-owned The New Release, which previously had an agreement with Kroger, according to a source familiar with the deal. Previously Redbox unseated The New Release kiosks at H-E-B stores. Calls to NCR and TNR were not returned. NCR has partnered with Blockbuster Inc., with the goal of rolling out 10,000 Blockbuster Express kiosks by mid 2010, with 2,500 of those by the end of 2009.

DVDPlay CEO Chuck Berger said his company’s long-term contract with Safeway will keep DVDPlay’s 1,500 kiosks in the mix for some time.

“I certainly think there’s a battle for real estate,” he said. “We’re going to be around for a long time.”

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