JAN. 16 | Family Video, the country's largest privately owned video rental chain, is doubling its expansion pace to open nearly 200 new stores during the next two years.
The 328-store Family, the nation's fourth-largest video rental chain behind Blockbuster Inc., Hollywood Entertainment and Movie Gallery, has quietly opened about 50 stores a year for the past two years.
Family is far smaller than the three public companies, with Hollywood and Movie Gallery operating about 2,000 stores each and Blockbuster boasting more than 5,000 locations. It was, however, one of the few private chains that continued to grow through the '90s and is by far the largest independent.
Director of sales and marketing Raelene Ohanesian said Family has been continually expanding but is only now gaining attention because of its size.
"We're expanding as quickly as we can. That's our goal," Ohanesian said.
The pace of growth is being determined by the company's financial situation; how quickly Family is able to find suitable new locations in regions where it already operates and build stores; and how fast it can find store management staff, Ohanesian said.
Springfield, Ill.-based Family has stores in Michigan, Wisconsin, Ohio, Indiana, Illinois, Iowa, Kansas, Pennsylvania, Missouri and North Carolina. Unlike most video stores, Family is also in the real estate business, owning the property for all of its stores.
Growth is being driven by president Keith Hoogland, who jokingly has promised to have 500 stores opened by the time his father, Family founder and owner Charles Hoogland, celebrates his 75th birthday in November 2005.
Family is known for being aggressive in its pricing and product selection, buying deep on product while refusing revenue sharing. Family stores typically compete on price, charging $1.50 less than competitors. The company has not shied away from opening locations near Hollywood or Blockbuster stores.
"Some markets are competitive," Ohanesian said.
