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Springfield, MO

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Entertainmart picks Springfield for new venture

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by Eric Olson|ret||ret||tab|

SBJ Reporter|ret||ret||tab|

eolson@sbj.net|ret||ret||tab|

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The Dallas-based entrepreneur who started the CD Warehouse chain has a new idea in the works for Springfield. Entertainmart, a concept for selling new and used music, movies, books and video games under one roof, will get off the ground at 3040 S. Glenstone Ave. in time for Christmas.|ret||ret||tab|

Entertainmart is Dallas-native Mark Kane's latest venture. Kane started CD Warehouse in the early 1990s when he began selling used compact discs at a Dallas flea market, and in 1998 created Movie Trading Co., applying the buy, sell and trade concept to movies. After striking gold in the used music and movie businesses Kane and partners sold CD Warehouse for $7 million in 1997 and Movie Trading Co. to Blockbuster Inc. last year for a greater, but undisclosed, amount Kane is looking to expand the idea to include books and video games.|ret||ret||tab|

"Logically, if they work by themselves, I'm hoping that they work together," Kane said from his Dallas home.|ret||ret||tab|

Kane is partnering with Springfieldian Keith Gaines for Entertainmart. Gaines, who will run the store, is the reason the flagship is opening in Springfield. Gaines was working in Dallas as a training manager and new store coordinator for Movie Trading Co., and said he wanted to return to his hometown.|ret||ret||tab|

The pair signed a five-year lease with options for 12,840 square feet in the former Wherehouse Music Outlet space at Battlefield Square, according to the listing agent and broker Scott Harrell of Scott F. Harrell & Associates. "There's no business like this in town," Harrell said.|ret||ret||tab|

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How it works|ret||ret||tab|

When open next month the target date is Dec. 15 Entertainmart will carry about 30,000 movie titles, 25,000 books, 17,500 CDs and 3,500 video games, Kane said.|ret||ret||tab|

The business concept nets customers half of the purchase price on returned items. "The idea is that you can buy the new Stephen King or Tom Clancy (book) for $15.99 then if you bring it back we give you $8 for it," Kane said. "It's an $8 read, rather than a $16 read."|ret||ret||tab|

The store then resells that copy at a 35 percent or 40 percent margin, maybe $12.99, and would buy it back for $6.50, Kane said. "The third time around, it might (sell for) $9.99. Then it goes into our regular catalogue."|ret||ret||tab|

The catalogue, or clearance items, will range from $9.99 to $14.99 for movies, $6.99 to $8.99 for CDs, $1.99 to $10 for books and $6.99 to $30 for video games, Kane said. New release items will be competitively priced, he said.|ret||ret||tab|

Despite finding success and profits in past ventures, Kane is honest about his expectations of the new concept.|ret||ret||tab|

"I have no idea if this whole thing is going to work," he said, adding that he does not have an exit strategy. "It's more build it and see if it works." |ret||ret||tab|

Kane built CD Warehouse to 175 stores before selling in 1997. His Movie Trading Co. idea is now owned by Blockbuster, though he serves as consultant per the May 2002 purchase agreement.|ret||ret||tab|

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Familiar competition|ret||ret||tab|

Springfield's CD Warehouse is located a short drive north at 1938 S. Glenstone Ave., which could spark a competition between Kane's first venture and his latest. But CD Warehouse Manager Michael Vincent doesn't seem concerned.|ret||ret||tab|

"That building is 0-for-2 in music stores," Vincent said, referring to the closings of Wherehouse Music Outlet in April and Blockbuster Music before it. "We survived well with two different music stores there. It doesn't bother me at all."|ret||ret||tab|

Instead, Vincent views it as a risky move.|ret||ret||tab|

"It's just really risky to have that much square footage (in this business)," he added. "I'm aware of how much it is a square foot, and they're going to have to turn a lot of product to stay solvent."|ret||ret||tab|

Located on the southeast corner of the heavily trafficked Glenstone Avenue-Battlefield Road intersection, opposite Battlefield Mall, the lease rate for Entertainmart is about $14 a square foot, Kane said. |ret||ret||tab|

Vincent said he looked at that space for expansion of his store, but opted to purchase the 1,500-square-foot Hong Kong Inn that shares a roof with CD Warehouse. CD Warehouse is adding 6,000 CDs for a total inventory of 40,000 CDs posters and T-shirts in the new space, which has a total of 3,500 square feet.|ret||ret||tab|

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