FSP Retailer Profiles Blockbuster
FSP Retailer Profiles - Blockbuster About Blockbuster was founded in Dallas, Texas, in 1985, entering the UK in 1989. It remains the UK’s leading DVD rental operation, but has contracted from almost 800 UK outlets to 600 by late-2010.DVDs for purchase are an increasingly important part of its offer, while on-line rental and purchase has also become significant. Around 200 outlets comprise Blockbuster superstores, the remainder smaller Blockbuster Express outlets. There are 40 or so in-store BBGames concessions (formerly Gamestation). Reflecting the difficult market and on-going rationalisation, UK sales fell 10% to £263m in 2009.
History • 2010: US Blockbuster files for Bankruptcy. • 1999: Viacom holds an initial public offering of Blockbuster shares on the New York stock exchange. • 1996: Company headquarters move to Dallas. • 1994: Media giant Viacom Inc. acquires Blockbuster. • 1992: Blockbuster acquires Sound Warehouse and Music Plus chains to create Blockbuster Music stores. • 1989: Blockbuster opens its first stores in London and in Canada • 1987: Founder David Cook leaves the company • 1986: Blockbuster goes public. • 1985: The first Blockbuster video store opens in Dallas.
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Recent News • • • • • • • • • • •
Blockbuster set to close 182 stores Blockbuster UK profits up despite bankrupt parent Blockbuster UK to sell mobile phones, iPods and TVs Blockbuster will not rule out closures US Blockbuster files for bankruptcy Potential buyers sit tight as Blockbuster awaits its fate Blockbuster adds videogames to its mail offering Blockbuster offers mobile phone voucher scheme Blockbuster says its business model is successful in UK Blockbuster UK insists it has a future despite US struggles Blockbuster may file for bankruptcy
Year
BIS Guide
2008 2009 2010
Healthy Healthy Very Strong
Blockbuster Trading Countries England & Wales & US
©FSP 2010. BIS © Department for Business Innovation and Skills. The content of these reports has been derived from statistical, trade and published sources together with FSP estimates and interpretations. Some Data sourced from www.snap-shop.co.uk
FSP Retailer Profiles - Blockbuster
Blockbuster Sales
Blockbuster Financial Health Financial Health Progression
Blockbuster 130
300000
120
250000
110
200000 150000
Sales Exc Vat
100000
UK Sales Exc Vat
50000
100 P2
90 80
Year
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0
3
P2
Millions
350000
70 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year
ŠFSP 2010. BIS Š Department for Business Innovation and Skills. The content of these reports has been derived from statistical, trade and published sources together with FSP estimates and interpretations. Some Data sourced from www.snap-shop.co.uk
FSP • 19 Manor Courtyard • Hughenden Avenue High Wycombe • HP13 5RE • UK T +44 (0) 1494 474740 F +44 (0) 1494 474262 E fspretail@fspretail.co.uk W www.fspretail.co.uk & www.snap-shop.co.uk
Fripp Sandeman and Partners Limited, trading as FSP G Nicholson (Managing Director) J H Fell J Hewson K Gunn Registered Number 1284879 Registered Office 19 Manor Courtyard Hughenden Avenue High Wycombe Buckinghamshire HP13 5RE