HASTINGS 40th ANNIVERSARY: Hastings expands used product

SEPT. 29 | HASTINGS 40th ANNIVERSARY: Hastings Entertainment is distinguished by its strengthening dedication to used product, a category that can be controversial for retailers.

Hastings is one of the few entertainment specialists to sell used inventory across many merchandise types, including books, CDs, DVDs and videogames.

Since debuting used CDs in 1992, Hastings now offers more used product than it ever has, and the retailer plans to continue to expand its selection. By the end of Hastings’ fiscal year 2007, the used category represented 10% of its business, and that share is expected to soon climb to 15%.

This despite the fact that some vendors, such as Warner Home Video, have developed programs to discourage or limit used product sales.

For Hastings, the customer comes first. The retailer wants to help people affordably beef up their media libraries with a choice of new and used products. The hybrid merchandising style is proving to be complementary, rather than cannibalistic. New product sales have remained healthy at the chain, along with the wide used-product offerings.

“The industry initially opposed it, but research has shown that it’s accretive to sales,” Hastings CEO John Marmaduke says of the company’s used business. “This is a way for customers to leverage value and increase purchases of new releases. Generally, they’ll trade in some of their older products in order to buy the new stuff. We view this as a customer convenience.”

Victor Fuentes, Hastings VP and divisional merchandise manager, believes that providing a robust used selection is critical to Hastings’ image for its customers.

“Our used program further promotes our brand Discover Your Entertainment,” Fuentes says. “It allows customers to trade in what is perhaps sitting on their shelves at home for credit to buy new titles. It also results in providing used for those simply looking for value.”

Uniquely, Hastings has long merchandised new and used copies of a DVD, book, CD or videogame side by side on display racks. Most retailers corral their used offerings into separate sections, away from new release walls, perhaps hoping to avoid vendor complaints of overly encouraging a used sale. Typically, used products are priced far below their new counterparts.

Hastings customers have become fans of this unbiased, even handling of used and new, says Fuentes. “As with any initiative, we test, evaluate, adjust and re-evaluate to determine what customers want,” he explains.

Hastings sits in a well-established position with used, having supported the category for more than 15 years. Redbox and Borders are among retailers just starting to sell used product this year, similarly touting a desire to maximize customer choice. Borders is limiting used book and DVD operations to its Web site.

Though Hastings turns around previously viewed rental DVDs for sale, most of its used product hails from trade-ins, including DVDs. The company also occasionally buys from outside sources.