Blockbuster Video Activist Presentation Deck
Phase 2: Stabilize Cashflow from Core Store Base
Drive traffic to stores via intelligent/low-cost/viral advertising. Improve store
experience and customer service. Optimize pricing to provide more compelling/flexible
customer value proposition. Re-engage alienated customer base (and store employees)
to achieve organic turnaround in same store sales. Cross fertilization of store-based best
practices from bottom up- why are some stores so profitable and others money losers?
What can BBI offer in store that Netflix and Redbox can't? Look at what other
successful brick-and-mortar video rentailers (such as the 600-location Family Video
chain) are doing.
Outsource/Optimize ordering/scheduling of independent titles to 3rd party to reduce
costs and improve flow of customers into stores between major releases
■
Optimize portfolio of physical stores per Movie Gallery/Hollywood Video closures and
look for lease re-negotiation opportunities, smaller footprint, retail sublease
opportunities
Continue to reduce costs: SG&A in Q1 2010 > Q1 2009 despite reduced store base
■ Rationalize cost structure to reflect reduced revenue base:
242,615 sf class A office space at Dallas HQ/850,000 sf distribution center in
McKinney, TX, 38 by mail distribution centers throughout US, country head offices
in Buenos Aires, Argentina; Toronto, Canada; Uxbridge, England; Milan, Italy;
Herlev, Denmark; and Mexico City, Mexico
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