What Will Replace Movie Gallery Stores?

Movie Gallery is closing its remaining 2,400 namesake and Hollywood Video stores after filing for bankruptcy last year. New technology, such as streaming video, and rivals like Netflix, are killing off brick and mortar movie-rental outlets.

Landlords could have a similar announcement by rival Blockbuster Inc. to look forward to in the future, as that chain deals with similar problems.

Can GameStop Sustain Its Growth?

GameStop plans to open 400 stores this year on top of the 6,450 it already operates worldwide. That is up from 388 last year, and in 2008, it rolled out 674 locations.

Landlords likely love a rapidly expanding retailer, especially during these times. But is there any concern that it could eventually face a fate similar to Blockbuster?

Blockbuster To File Chap. 11…Or Will It?

In a regulatory filing yesterday, Blockbuster Inc. mentioned that it would have to file for bankruptcy if it can’t deal with its $1-billion-plus debt load. Not much of a surprise there.

But CEO James Keyes, in an interview with Bloomberg, discounted that language in the filing, saying it was required by the company’s attorneys. He didn’t deny, however, the company’s annual lost last year of $558.2 million.

Blockbuster Buying Movie Gallery Assets?

An article in today’s Wall Street Journal says that Blockbuster Inc. is in talks with bankrupt Movie Gallery to buy some of the latters assets. It did not specify what assets Blockbuster wants to purchase.

We would assume that it won’t take on Movie Gallery’s Hollywood Video leases. Blockbuster is already closing about one-fifth of its 5,000 stores around the world.

Walmart Takes on Netflix

It looks like Walmart is taking on Netflix now in its continued quest for world domination. The retailer acquired VUDU, an online movie-watching service that sounds very similar to the Internet-based viewing service that Netflix offers its customers.

The transaction will supposedly make up for a lack of DVD sales from which Walmart is suffering.

Movie Gallery Could Close 1,800 Stores

Movie Gallery might file bankruptcy this week and could end up as one of the first big chains to close massive amount of stores. According to the Wall Street Journal, the Hollywood Video parent could close two thirds of its units, or 1,800 locations.

This move comes as Blockbuster is in plans to close 1,000 stores of its own and reported poor holiday sales. Obviously, the physical movie-rental business is not the best enterprise to be in right now

Things You Don’t Want to Buy This Year

Smart Money has an entertaining feature on its site called “10 Things Not to Buy in 2010.” Some are pretty obvious, like DVDs and CDs, sorry Blockbuster and f.y.e.

A few were a little less obvious to us, such as portable digital cameras. We didn’t think that in this economy more consumers were snapping up those fancy SLR digital machhines, as the prices aren’t too low yet. Either way, though, it’s probably good news for Best Buy.

Blockbuster Closing About 1,000 Stores

Blockbuster is ramping up its store-closure process. By the end of next year, the retailer is closing up to 960 locations as part of an “accelerated” program, according to a recent SEC filing. That number is up from the up to 425 that were previously on tap.

In addition, the company is trying to terminate between 275 and 300 leases and convert 250 to 300 units into outlets that sell used DVDs. So in a worst-case scenario, that would mean 1,560 Blockbusters will shut down.

Retailers Say Rent Relief Is Working

Another interesting article appeared today on rent relief at shopping centers.

Apparently Starbucks has had success in receiving concessions from landlords, in its quest to lower rents by as much as 25% at some of its locations. Additionally, jeweler Zale Corp. earlier this week joined the ranks of retailers looking to catch breaks, and we wrote about Charming Shoppes’ strategy yesterday.

Are Major Store Closures Over?

It’s been kind of quiet on the mass store-closure front, hasn’t it?

Sure, we’ve seen a lot of damage with the Circuit City/Linens closures, and it seems like there could be unsurprising news from Blockbuster some time soon. But didn’t you think that by this time in 2009 there would be more fallout from major chains?