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Actually, B&N's stores can work to a significant advantage. If they leverage the nook's in-store potential correctly, they can make digital sales and retain their b&m traffic. That gives them the opportunity to make the more profitable sales of impulse items instead of just losing money on e-books.
I remember a discussion on MR a year or two ago about the potential advantages of a combined digital/b&m approach to e-books. It might have been in relation to Borders and Sony partnering up, but I don't remember exactly. Anyway, if they can keep store traffic up, they should be fine.
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