Tesco To Offer Original Films Along With Milk, Bread

It's not too unusual these days to find DVDs for sale in supermarket chains. But how about a supermarket chain that actually creates and produces its own movies that are available only at its respective stores? Talk about synergy.

Tesco, the UK's largest supermarket group, is partnering with a media firm to create DVD feature films based on books. The films will be available only as DVDs -- not in movie theaters -- and will be sold only through Tesco's retail and online operations.

"This ground-breaking relationship with Amber Entertainment is a significant development for Tesco and the first of its kind for the industry," says Tesco's entertainment director, Rob Salter. "Through this partnership we will be able to offer our customers an exclusive window to own a first-run film from a range of well-known authors."

Tesco has already cut a deal with best-selling author Joan Collins to sell four film adaptations of her books. Collins said "I love the concept of creating quality DVDs I know my readers will enjoy. It's an innovative idea to partner with Tesco, and gives the consumer something exclusive."

Other authors in talks with Tesco include Judy Blume, Dick & Felix Francis, and Anne Perry.

Tesco's aggressive move into home entertainment is part of an innovative strategy that helped the supermarket group report "its strongest Christmas sales performance for three years in the U.K." Tesco did particularly well with upscale products, selling 35 percent more bottles of champagne to British shoppers this Christmas season versus last year. Non-food items such as clothing and toys sold well, and online sales in Britain grew nearly 20 percent during the six week holiday period.

Not unlike Target and Wal-Mart, Tesco is yet another retail brand that is creating marketing opportunities by inventing its own unique product lines. Another example of how the strongest brands conjure ways to remain relevant and profitable even in dire financial times.