Published: June 27, 2008 05:33 pm         

Oldest independent video store closing after 27 years

ROCKWALL — After 27 years in business, Texas’ oldest and largest surviving independent video store is closing.

Al Welch, whose thoughtfulness, forthrightness, and sharp intellect have shaped a well-respected video store locally, and a reputation nationally, is closing Video Village July 4.

He expects to pursue another interest, international business, in which he was involved before his last three decades as an independent video and equipment retailer.

From Atari to Wii and from Rockwall to Washington D.C., Welch has not only seen the industry change, he’s helped shape it.

It has grown from the mom and pop stores of the 1970s, to a half-dozen methods of delivery through large corporations.

“Al is one of the longest surviving video retailers in the country,” said Sean Bersell, vice president of public affairs, Entertainment Merchants Association (EMA).

“He’s of the early generation — not many of them left,” Bersell said. “They built this industry from scratch.”

Welch opened in 1981 on Yellowjacket Lane, in 350 square feet. (The first video rental store in the nation opened in 1977 in Los Angeles, said Bersell.)

“On New Year’s Eve 1980 I was at a friend’s home and I saw an 80 lb. brick on top of his console television,” Welch said in a recent interview from his office at his store on Ridge Road. The “brick” was a videocassette recorder.

“I had been reading about and been fascinated by BetaMax VHS,” Welch said. They were “expensive rarities,” he recalled.

“One-half of one percent of households had VCRs. In Rockwall County that meant maybe eight VCRs, given we are an affluent community,” Welch said. “Over the next 10 years we sold more than 4,000 VCRs and installed way too many,” he said laughing.

Welch’s brown eyes express his consistent sincerity in conversation — quiet and still during serious and reflective moments, twinkling in light moments.

“I love technology and that’s what I wanted: To sell VCRs.”

The average cost of a VCR then was $1,200, but life for an independent equipment dealer got tough in the ’80s, he recalled.

“In the ’80s, we had the advent of big box electronics retailers,” he said, recalling Federated and Rave as the first big ones. The stores sold VCRs below cost. “Both went bankrupt. They ruined the market for anyone trying to make a living at it,” he said.

But the result was, that “by the late ’80s, VCR market penetration was 60 to 80 percent of households,” said. The average VCR cost in 1990 was $250 to $300.

That equipment was used to play movies, and Welch’s Video Village offered a big selection.

“The second largest movie library in the metroplex — More than 100 releases to choose from” proclaimed the banner on the his weekly full-page ad on the back page of the local Rockwall newspaper at the time.

Yes, 100 videos; put out by Magnetic Media, beginning in 1977 with 50 films from Twentieth Century Fox, “none more recent than 10 years old,” Welch recalled. “There were no studio releases.”

By 1986, when the first Dallas Blockbuster opened, Video Village offered almost 5,000 titles. He was well established in video rental by the time Rockwall got a Blockbuster in 1991. By 1996 he had 32,000 titles.

“He had a wonderful selection of movies,” said long-time customer Tammy Cain.

National advertising campaigns of corporate stores made things tough on local independents, but great customer service, in addition to his knowledge of business, made his store a success.

Since Video Village first opened, Linda Alexander has been a regular customer. “I’m sick they’re leaving,” she said, referring to Al and his wife Cindy. Not until last week had she ever been a Blockbuster. The humor and customer service of the Welch couple and the employees created a small-town store atmosphere, she said. “I would see them leaving the store, and I would joke, ‘Hope these are free!’” Upon her return, a note left for her said. “These are free. Mr. Welch.” “He would do stuff like that. I can’t say enough about their customer service and the people that worked for him.”

“That is something that Video Village always prided itself on, was great customer service,” said 10-year employee Anthony Martinez. “We will go above and beyond to make our customers happy.”

Martinez was 16 when he went to work for Welch. Though he and Welch butted heads at times, Martinez said in a recent phone interview, “I don’t think I could have learned about business any better than from Mr. Welch. Not just in running a business, but in a good work ethic,” Martinez said in a recent phone interview. “It’s been a pleasure.”

Welch appreciated the good ethics in his customers too, and the “never being behind” paid off in October 2007 for long-time customer Cain. “He wrote out a referral letter for me,” Cain said. “He helped us get this house and the land.” “Mr. Welch is down to earth,” she said.

“He’s a scary guy at first,” Martinez said. “Scary” translates into Welch’s high expectations for himself and his employees, and his strength in defending what he believes is right, Martinez explained. Welch firmly stands behind what he believes in, Martinez said, “He’ll back it up 100 percent, and he will admit when he’s wrong. I think that shows a much bigger character of a man more than anything - being able to admit when you’re wrong.”

Welch’s quiet but firm tone as he discussed Rockwall’s ordinances showed that firmness Martinez described. “The City of Rockwall, like many suburbs, wants to be ‘pretty,’” he said. “The problem is, it has nearly mandated invisibility for smaller merchants. I am no longer allowed to put professionally made, nice metal signs for a week at a time to advertise a sale. At one time, the usage of those signs for a three-day sale could generate between $5,000 and $10,000,” he said. “Without them, sidewalk sales had dropped to $1,200.” Signs were his best advertising medium he said. “Banners are permitted for 60 days,” he said. “I have to pay $50 for the privilege. That might be my entire profit off $500,” he said.

“They have adopted a sign ordinance, and a lot of things I agree with,” he said strongly. “I agree, I think its awful to see signs posted on telephone poles.”

“It (signage) is the most important for a small business, not for a big box. They have a national, regional and local advertising budget.”

“Right now I have the banners up. They are working terrific,” he said.

Such understanding of business issues has earned Welch national respect.

“He is a thoughtful guy and a good retailer who knows how to run his business,” said Bersell. Industry peers elected Welch to the board of EMA which addresses congressmen on issues of the industry.

“He is well-spoken, thoughtful, and understands the issues. He can explain it to the legislators in a way they can understand, and how it affects their constituents,” said Bersell. He especially worked to support laws against video piracy, and to develop better enforcement of the selling of rated videos.

However, no amount of involvement curbed substantially the impact made by the chain Blockbuster in 1998. It “pressured”, according to Welch and others, the studios into a revenue-sharing agreement which allowed Blockbuster to recoup all costs, then pay the studios 40 percent of the revenue, plus be allowed to sell movies, once the rental life subsided. Independents were paying $70 for the same movie, and had to return them after the rental life ended. The net affect was that Blockbuster had no serious risk to stocking huge quantities, but small operators, with their up-front costs and complex agreements for sales and rental, had full risk.

The result: In 1998 Blockbuster and the like went from 32 percent to 67 or 70 percent of the studio video revenues in one year.

Ironically, it was Welch’s interest and recognition of trends which allowed Video Village to be well-established by the time Rockwall’s Blockbuster opened in 1991. He had been renting videos six years before the first Blockbuster opened in Dallas, and at one time operated two locations in Rockwall and two in Rowlett.

After 1998, he found he made just enough to get by day to day, and now, he is closing his last location. He plans to enter international marketing to make enough money to retire.

For Welch, the attractive part of any of his business interests is the people. “I love the people,” he said. “Just look at her,” he said, referring to a customer who came back to his office during the interview to tell him how much she would miss Welch and the store. “I’ve been with you since your first store in Rowlett,” she said. “I have to tell you how much we will miss you.”

By returning to the international field, Welch returns basically to his upbringing. With one parent an historian and anthropologist, and the other a psychologist and philosopher, Welch and his brother grew up as “polyglots” he said. He knows seven languages, including Spanish and Portuguese. He was a Latin American historian for three years at the University of California at Santa Barbara, and wrote and published. He has lived in many states and in Switzerland and Brazil.

“Rockwall, from the day we moved in here in 1980, has struck me as more cosmopolitan than Cleveland, Ohio,” he said, where he served for more than eight years in international marketing for Republic Steel Corporation. “Within three or four years I found three or four people who spoke Portuguese.”

“Most people in Rockwall have a horizon beyond Rockwall County and the State of Texas,” he said. “Many places do not.”

“I met such a cross-section of the community and it was a delight to find out how many were international managers,” he said.

“It is fascinating; it is wonderful.”

“I love to travel, I love to meet people, and I love to interact with other cultures.”