When your business faces possible extinction, you better start re-evolving. That’s what Blockbuster Inc. seems to be doing, according to this article in the Dallas Morning News. With killer competition from the likes of Netflix and online movie sites such as Hulu.com, Blockbuster’s chief exec wants his store to become retail destinations—sort of like Borders and Barnes & Noble. I didn’t even realize that “Video” isn’t part of the stores’ name anymore. According to Wikipedia, it was Blockbuster Entertainment for a while, but now it’s just Blockbuster.

With features like kids’ play areas, a tech lounge, soda fountains and gaming consoles, Blockbuster is giving the concept a try at a 12 Dallas-area stores before it rolls them out at all 4,800 in the chain.

At the risk of every big-box retailer becoming a destination, I think Blockbuster is on the right track. At least they’re thinking out of the big box, which could help jumpstart their revival. They’ll have to really set themselves apart from the bookstores mentioned also, which also happen to sell DVDs. The concept-store photo in the article looks pretty much like any consumer electronics store’s interior.

With consumers itching to download movies from the web, Blockbuster will soon start offering an online service for that very purpose. Will that keep consumer traffic from the new stores? That chapter has yet to be written.

I wish Blockbuster all the best with their concept stores. It will be interesting to see if they’re the blockbuster idea their chief executive will be remembered for.