retail news in context, analysis with attitude

Business First of Columbus reports that Ohio-based Marco’s Pizza plans to open “hundreds of its pizza shops” inside Illinois-based Family Video stores, with Family Video spending $100 million to become a Marco’s Pizza franchisee.

According to the story, “WIthin seven years, about 250 pizza shops are expected to open in Family Video locations ... Marco's currently has more than 280 stores in 21 states, and at least 100 new locations are expected to open this year.

“Adding the pizza franchise will help Family Video use the 2,000 square feet it has gained in its 7,000-square-foot stores in the transition from VHS tapes to DVD.”
KC's View:
I sort of get why some folks would think that this kind of synergy makes sense, and I guess on some level it does, but I can’t help but feel that the whole deal sounds anachronistic.

Maybe Family Video will seem like a more attractive option for people looking for pizza and a movie, but Marco’s Pizza might have been better off installing Redbox units in its stores. (Though, to be fair, it would not have gotten a $100 million check. I could look past a lot of second thoughts for $100 million.)

Family Video also is likely to have a lot more space available to it as more and more people stream or download movies rather than renting a physical DVD. At that point, they can just get rid of the DVD racks and put it tables for pizza patrons.

Or am I being too cynical?