According to The Hollywood Reporter, the biggest retailer in home video is getting ready to say goodbye to VHS. Industry sources said Wal-Mart will be out of the videocassette business soon after the 2005 holiday season.

In the mega-chain's next September "reset" -- a thrice-yearly process in which video department planograms are redrawn and between 20%-40% of titles are replaced -- the company will realign its chainwide VHS inventory based on customer demand. "In some markets, there will be more (VHS), in some markets there will be less," according to one high-ranking studio source who asked not to be named.

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