New Media Play format is smaller but cleaner

Discount Store News, Dec 13, 1999 by Laura Heller

DOUGLASVILLE, GA. -- Media Play opened a new store in this Atlanta suburb last month as part of a corporate strategy to create a smaller, more streamlined store format with enhanced departments and new design initiatives. It was the chain's fourth new store this fall, as parent company Musicland Stores strengthens its drive toward profitability and prepares for growth in the coming year.

"We've been focused on getting the company healthy again and getting all our ducks in order," said Randy Abbot, Media Play's vp of stores. "We feel like we're geared up now; we have our financials in place and are ready for some growth."

The 73-unit Musicland chain will add 10 Media Play units in the coming year and a total of 28 stores for the company overall, according to George Sutton, an analyst with Dain Rauscher Wessels. That's not excessive compared to some larger-format retailers, but Media Play stores have an average square footage that's approximately 10 times larger than most of Musicland's On Cue, Sun Coast and Sam Goody formats, Sutton said.

Media Play is adopting a slightly smaller format as it goes forward. The Douglasville store is 40,000 sq. ft. as opposed to the 48,000-sq.-ft. original format. The four stores in the latest round of openings range from 30,000 sq. ft. to 40,000 sq. ft.

"We're going just a tad smaller," Abbott said. "We took out some architectural elements. We think it's a cleaner look."

Color-coded signs call out the major departments: books, electronics, music and software, and DVD and video. The system is reinforced by overhead signs and a corresponding band of color ringing the perimeter walls. Three-dimensional character art on the walls also serves to reinforce each category.

Ceilings are approximately 30% higher and are meant to give the store a "brighter, cheerier, more entertaining feel," Abbott told DSN. In lieu of its traditional racetrack layout, the store uses a cross-track design to facilitate customer flow between departments.

The store has a new feature called "the game zone," an interactive department where customers can buy both new and used games and sample product on one of two game stations. Media Play began testing the department in early 1999 and quickly rolled it out to all its stores. "This has been a great element for us and has worked extremely well," Abbott said.

The Jam Central area combines exciting products into a new department: sheet music, musical instruments and accessories. It features a selection of guitars, electronic keyboards, amplifiers and other accessories. The department was rolled out to all stores in September.

Apparel and licensed merchandise continues to expand, as does the stores' DVD section. According to Abbott, the store stocks between 5,000 and 6,000 skus and is adding more each day. Media Play does not currently sell DVD players chainwide, but it is currently testing some in select stores, he said.

M.P. Kids is a new initiative for the chain. Located near the store's center, the department functions as a play area for children and a dedicated department for a cross-section of kid-related merchandise. The vendor-sponsored M.P. Kids has popular movies, books and interactive and educational toys merchandised in a colorful, kid-friendly environment. It's an area the chain keeps enhancing, and it is currently testing this latest format in three stores, said Mark Stone, Musicland director of visual merchandising and store planning.

Electronics has also been beefed up a bit, going beyond the typical portable audio products. Clock radios, basic and fashion phones, boom boxes and shelf units have been added, although the chain has chosen not to participate in sales of MP3-related products.

"We're waiting for the format issue to be cleared up first," said Abbott, although Media Play customers can download music and burn custom CDs from its Web Site. "We're all over that and are going to be a big player there," he said.

In fact, MP3 and digital music formats will play a key role for the chain. The technology may even allow the chain to further decrease store size in the future, said Sutton, as well as take better advantage between on-line initiatives and existing real estate.

Musicland currently has Web Sites for each of its properties: Media Play, Sam Goody, On Cue and Suncoast. Mediaplay.com sells music, video, DVD, sheet music, books and video games and offers a link to NetFlix. In addition, it features a music center that allows consumers to pick their own music and customize a CD.

The site also offers a gift card good at any Musicland property, both on line and off. The cards are also being sold in stores near the checkout lanes. Consumers can check the remaining value on the card on line and add additional amounts via the Web site, making it easier for teens and younger shoppers without access to credit cards to purchase on line.

Enhancing its Internet presence will be a large part of Musicland's growth as it enters its new fiscal year, beginning Jan. 1, 2000, according to Sutton. Among its retail concepts, "[Media Play] is the store-based growth vehicle," he said. "They may integrate new categories over time [with new technology], and it will be interesting to see how they can reduce the store size" as digital downloading progresses.