Wal-Mart Enters Drive In Business

[Martin McCaffery]

https://www.cnn.com/2020/07/02/busin...ers/index.html

Walmart is transforming 160 of its parking lots into drive-in theaters
New York (CNN Business)Two of the most classic pieces of Americana are coming together this summer: drive-in theaters and Walmart.

Beginning in August, the retailer is converting 160 of its US store parking lots into drive-in movie theaters. As the pandemic continues, drive-in theaters have been making a comeback as a safe alternative to the traditional movie theaters that remain closed in much of the country.
Walmart (WMT) is partnering with Tribeca Enterprises, the Robert De Niro-backed media company, to program the films. Locations and movie titles haven't yet been announced, but they will be revealed later on a special website. The event will run through October and encompass more than 300 showings.
"This family-friendly night will include hit movies, special appearances from filmmakers and celebrities, and concessions delivered right to customer vehicles," Walmart said in a press release. Walmart will use the nearby physical stores to let people use curbside pickup for treats and food. Drive-in movie venues have been popping up all over the country, with small business owners forced temporarily to shut down their traditional theater operations opting to reopen old drive-in locations or build makeshift theaters in parking lots in a bid to make up for lost income.
PHOTOS: Drive-thrus and drive-ins: How we're relying on our cars during the pandemic

[Sean Falk]

Although I don't like walmart entering another field, but this makes a lot of sense. They generally have huge parking lots, the capital to drop on buying/renting projectors, the income to cover overhead even if it doesn't generate a profit, the man power/hiring capability to have extra staff, and I'm sure studios would love them for it.

[Martin McCaffery]

If Wal-Mart operates in their usual cutthroat manner, I'm sure the studios will not love them for it. But it will be fun to watch. Of course, if Wal-Mart acts in their usual manner, all the movies will be Chinese;>

[Mark Gulbrandsen]

I can envision it now.... A 50 inch LG Tee Vee at the front of each parking space!

[Jarod Reddig]

Ugh Mark that sounds disgustingly accurate lol.

[Martin McCaffery]

A 50 inch LG Tee Vee at the front of each parking space!

And like hotels and hospitals, permanently set to SquishVision

[Marcel Birgelen]

To me, this sounds more like a morbid money grab than anything else.

[Jim Cassedy]

Touché!: I remember back in the 80's & 90's when most of the drive-ins around me
here in CA converted themselves into outdoor flea-markets. Some of them did it in
an effort to keep enough money coming in to stay open, but a few had actually closed
& were no longer showing movies at night. I guess the owners rented out the space
to pay taxes on the property until they could sell off the land, which had become
almost obscenely expensive here in the SF Bay Area. I'm pretty sure almost all
of those places I'm thinking of are gone now. (Except maybe The Coliseum Drive
In in Oakland/SanLeandro, which I think is still there. I used to drive over to their
flea market in the 90's. I got some good stuff there!)

[Martin McCaffery]

To me, this sounds more like a morbid money grab than anything else.

Or as we refer to it, the Wal-Mart business model.

[Randy Stankey]

Walmart won't LOSE money on this. I think it's going to be run like a leased department like they way they run their optometrist department, the hair salon or the wine & beer shop. In other words, Walmart doesn't technically own the hair salon (et. al.) even if it's an entity created by Walmart, specifically for the purpose.

It's the same thing as the way the Big Screen theater operates at the Tom Ridge Center where I used to work.
Since the state of Pennsylvania doesn't want to be in the movie theater business (nor should they be) but they still want to provide that service to the public, they (lawmakers) create a line-item in the budget that goes to a contracted third party who runs the theater. That contractor, created on paper, specifically for the purpose, sends its earnings back to the State who then uses the money to pay for the original budgetary outlay. That's why I don't work there, anymore, because the contract has to be re-bid every three years and everybody except the top manager has to reapply for their own jobs again.

Anyhow... I digress...

Walmart (WMT) is partnering with Tribeca Enterprises, the Robert De Niro-backed media company, to program the films.

This tells me that Walmart is just renting out space in their parking lots to Tribeca Enterprises in order to show movies. Walmart will make money on rent (likely including a percentage of the revenue) even if Tribeca doesn't sell a single ticket.

Beginning in August, the retailer is converting 160 of its US store parking lots into drive-in movie theaters.

The event will run through October and encompass more than 300 showings.

300 showings divided by 160 locations over a period of three months averages out to less than two showings per location with six weeks in between. They would have to literally PACK their lots on every show! It just doesn't sound like they are going to cover their nuts on this venture, let alone turn profit. Again, the shell game of renting out space is the only way Walmart is likely to profit, directly.

Then, again, they are going to carhop the concessions... at an exorbitant price. If people think traditional, indoor movie theaters overcharge for popcorn, the prices here are going to be through the roof, by comparison. Of course, Walmart can order it's own product and supplies in truckload quantities at the cheapest possible prices because...well...they are Walmart and that's what Walmart does. Better yet! They'll SELL the supplies to Tribeca (or some other entity that they create on paper) at a profit then take lease payments from the vendor.

Don't forget how Walmart, with a wink and a nudge, used to encourage camping out in their parking lots so that those people could buy things from the stores as they stayed there...even in the face of accidents, medical emergencies or violent crimes committed by those who camped out in Walmart lots. To this day, Walmart often turns a blind eye to campers, even if they have official policies in place that prohibit camping. They just make too much money from it.

So, what is Walmart doing here? They are using up empty space in their parking lots to make lemonade out of the lemons left over from this COVID virus thing. They are either leasing out that space or creating a shell company on paper then charging them rent. Then they will profit by carhopping overpriced popcorn and making increased sales from "camped out" moviegoers who shop in their stores.

I'll bet you (facetiously) that Walmart has already profited or will, soon, profit from this, even before one frame of video hits a screen!

[Lyle Romer]

I don't see how overpriced concessions will work. You can just go into the store and get candy, soda, snacks and more at regular prices. The refrigerated drinks are more than the warm stuff but not near movie theatre prices.

[Randy Stankey]

Yes, but I bet you a nickel that they'll have an app that you can download so that you can enter your order into your phone and pay with your credit card. Then, a cheerful employee can ping your phone, locate your car and bring your popcorn right to your car. You won't even have to get out of your car, much less haul your fat ass a hundred yards to a concession stand.

[sarcasm]

EVERYBODY loves buying things with their phones and having them delivered. It's TOTALLY worth it because it's an APP on your PHONE! Right?

And... for an extra $9.99 (plus applicable sales tax and fees) you can get your popcorn PRE-CHEWED and fed directly into your mouth!

[/sarcasm]

CWO-Macolm.gif

[Leo Enticknap]

One issue that they may face is that Wal-Mart's business model is to operate stores in, shall we say, less desirable areas, where land is cheap. It has to be, because a Wal-Mart branch needs a large lot for the store and parking.

The two nearest me are in locations where, frankly, I wouldn't want to go after dark. One of my wife's co-workers was robbed at knifepoint in the parking lot of one of them a few years ago.

They are going to have to make a serious investment in security to make this work.

[Martin McCaffery]

I don't know about SoCal, but here in Montgomery they have a policy of trying not to have more than five miles between stores. So we have 6 Supercenters, none of them in the "dangerous" parts of town. I don't see extraordinary precautions being a problem here, certainly not in all of the little towns they have wiped out in the fly-over heartland.

[Mark Gulbrandsen]

To me, this sounds more like a morbid money grab than anything else.

Nope! Paid for by Robert DeNiro's money.

https://pagesix.com/2020/05/07/rober...-movie-series/