Buffer

Movie Rental Market Saturation

Elvis Elvis

Movie rental store market saturation can be determined in several ways. If you have at least one Walmart and McDonald’s store in your neighborhood, chances are there is room for your Video Store. Walmart and McDonald’s conduct extensive market research before considering opening a store in any given area. An even more important factor you must consider is to determine if the video industry is saturated in your area. Meaning, if you have a population of 30,000 people and Blockbuster, Movie Gallery, and Hollywood Video or Hastings Entertainment stores already exist, then your store may not be as lucrative.

Let’s use El Paso, Texas as an example of the above thought process. There are several Walmart and McDonald’s stores in this area. There are also about a dozen Blockbuster Videos and almost an equal amount of Hollywood Video stores. Additionally, there is a handful of Movie Gallery stores on the outskirts of El Paso. When Mimes Video first opened in 2003, there was approximately 25-30 major chain video stores with about 20-25 independent video stores for a total of approximately 50 video stores serving over 700,000 people.

Is there room for another Mimes Video store in El Paso? The answer shouldn’t surprise you. The population isn’t shrinking. Without going out on a limb, it is believed that there is room for a few more stores in this area. So why wouldn’t Blockbuster or Hollywood Video open up another store?

Movie Rental Market Saturation

The most obvious reason is the huge investment required for start-up. Typically, these stores are stand alone stores occupying approximately 4500- 5000 square feet with a staff of at least half a dozen or more employees, not to mention the inventory. Do the math, you can open one Blockbuster store or you can open 3-4 independent video stores. Mimes Video has much lower overhead and is very mobile in nature. As strip malls and plazas are erected, Mimes Video can capitalize on numerous locations unlike the competition.

What does all of this add up to? An invitation! Mimes Video invites you to conduct market research in your area using every means available about the video industry and see what you come up with.