Sharper, higher quality photo films create sales spillover - in the photo department

Discount Store News, Sept 6, 1993

With film quality rising to new heights, retailers can snap up untold profits from increased film and peripheral sales in the photo department.

New films that significantly reduce granularity and produce a sharper image like those introduced by Polaroid and more recently by Kodak and Fuji, have created merchandising opportunities for retailers by prompting consumers to purchase film more frequently because of the improved quality.

In addition, product areas such as photo albums, camera equipment and other higher margin photo department items have seen higher sales because consumers will buy more of these items if they are taking more photographs.

This trend started last year when Polaroid introduced its High Definition Film, which the company touted as being diverse enough to allow the amateur photographer to take photos indoors or outdoors, in bright light or low light and of fast action or still life subjects.

"High Definition film offers consumers premium-quality 35mm film for capturing such diverse scenes as fast-action athletics to a picnic on a bright, sunny day," said Bruce Henry, vice president, family imaging at Polaroid.

Others companies followed suit, with Kodak introducing its new Kodak Gold Ultra 400 film this year. This multipurpose film provides better flash range and better performance under low-light conditions. Its higher speed also allows for a smaller lens opening that increases depth of focus and allows more of the picture to be clear and sharp.

"Our new 400 speed film provides drastically reduced granularity with the same quality of 100 speed film, but with the benefits of 400 speed film," said Brett Lerner, coordinator, communications and public affairs, at Kodak.

This improved image quality also has a positive effect on photo finishing. In fact, as more retailers install on-site processing labs, a new customers base is being created and the existing one strengthened.

"By offering on-site, one-hour photo processing, mass merchants are giving shoppers one more reason to visit their outlets and shop there while their photos are being processed," said an industry executive.

A better quality Photo lends itself to all sorts of add-on sales opportunities such as 8x10 enlargements and images on T-shirts. In addition, consumer confidence in all the retailer's photo department goods and services increases, which ultimately has a very positive impact on the bottom line.

"Every time you improve a product, you improve your chances of providing consumers with better value and at the same time you're increasing the value of your product," said Lerner.

All of this is what Kmart must have had in mind with its test of a Photo Image Center at its Auburn Hills, Mich., prototype store. Utilizing advanced technology in its photo department, which is atypical of most discounters, the chain uses Kodak's Create-a-Print machine which allows users to make enlargements of 35mm film. In addition, consumers are able to have images transferred to T-shirts.