B&N Chairman rumored to bid for stores

[charmian]

http://www.reuters.com/article/2013/...0BO3PN20130224

The Wall Street Journal (article behind paywall) reports that Leonard Riggio, chairman of Barnes and Noble, may be planning to take the stores private. This rumored plan would not include the Nook business or college bookstores.

[fjtorres]

They have to do something to split them. The combo is hurting both.

[charmian]

Also: http://www.nytimes.com/2013/02/25/bu...ok-losses.html

B&N is going to emphasize its partnerships with other companies like MS and Samsung and focus on licensing. I wonder what exactly they will announce Thursday?

[fjtorres]

Sounds like they're going to be licensing access to their ebookstore so tablet makers can bundle the Nook app.

[kevinp]

Assuming they are not going to just let the Nook business die, the sooner the better to separate the two. Hopefully, the next owner can do something useful with the Nook line.

[TallMomof2]

Their physical stores are a hot mess. The last time I was in one was late last summer and I was not impressed. Too much stuff that wasn't books and the book prices were full retail. My teenage barbarian will only read "book" books i.e. physical books so the occasional trip to B&N can't be avoided. Even he realizes that the book can be purchased for significantly less online.

I wonder how much longer B&N will last?

[Tony1988]

Originally Posted by TallMomof2

Their physical stores are a hot mess. The last time I was in one was late last summer and I was not impressed. Too much stuff that wasn't books and the book prices were full retail. My teenage barbarian will only read "book" books i.e. physical books so the occasional trip to B&N can't be avoided. Even he realizes that the book can be purchased for significantly less online.

I wonder how much longer B&N will last?

Really though what do you expect?? The e-reader has virtually destroyed bookstores. So I dont know what else they are expected to do. Of course they are going to sell more than just books. Even in BN heyday they sold stuff besides books. I have been shopping at BN since the mid 90's and they are not much different than they used to be. Its the consumer that has changed and unfortuantely theres not much BN can do to regain those lost customers. They have pretty much tried everything.

As for book prices I see tons of books at sale prices or reduced. Dont know why you think all the books are full retail.

[TallMomof2]

Maybe it's just the books I looked at that were full retail. Yes, there were sale books but my son spent almost $200 on our last trip and none were less than retail. He wasn't interested in NYT bestsellers or the latest teen paranormal book as those were about the only discounted items that I recall seeing. There were tables full of books that were nicely displayed but were full price.

I hate to see all bookstores close so I hope that B&N can pull it together.

[fjtorres]

Originally Posted by TallMomof2

There were tables full of books that were nicely displayed but were full price.

That would be the reason for the prominent placing.
They prefer you buy the list-priced new arrivals instead of the closeout specials. They need the money.

[Fluribus]

Originally Posted by TallMomof2

Maybe it's just the books I looked at that were full retail. Yes, there were sale books but my son spent almost $200 on our last trip and none were less than retail. He wasn't interested in NYT bestsellers or the latest teen paranormal book as those were about the only discounted items that I recall seeing. There were tables full of books that were nicely displayed but were full price.

I hate to see all bookstores close so I hope that B&N can pull it together.

My experience in the physical stores was the same. Special areas with varying discounts. 30% off NYT bestsellers. Everything else full retail. If you bought a membership they gave a 10% discount off all books. Other than that the only discounts were online.

You might want to consider a membership. I think it costs $25. You would have saved around $20. One more similar trip and you'd be $15 ahead. I don't think they give discounts for online orders but do give free express shipping.


On an unrelated note:

My question is if the price is right and he does make his bid...will he also let Californ-eye-ay know why they call him a cowboy?

[Scott Nicholson]

This is all a stock gimmick leading up to the horrible quarterly report. Both divisions are dead. But a few insiders are going to walk away with a pile.

[charmian]

Really? But didn't same store sales for the physical bookstores only decline 2.2%? That seems far less dire.

[fjtorres]

Originally Posted by charmian

Really? But didn't same store sales for the physical bookstores only decline 2.2%? That seems far less dire.

10% or so. The 2% is factoring out Nook.
So its less dire *if* they split'em up or make Nook pay B&N for the floorspace and staff associated with Nooks in-store.

[MV64]

The physical stores actually did surprisingly well, relative to how they were doing, I think. I think the "decline" of bookstores has bottomed out. The industry is recalibrating and it may have found a relatively stable, if not overly profitable, place to rebuild from.

[fjtorres]

Originally Posted by MV64

The physical stores actually did surprisingly well, relative to how they were doing, I think. I think the "decline" of bookstores has bottomed out. The industry is recalibrating and it may have found a relatively stable, if not overly profitable, place to rebuild from.

They say that every year.

They *are* declining, just not collapsing.
That 2.2% decline is not inflation adjusted so it is closer to 4% just as last year's "slight increase" was really a slight decline after the 3% inflation was factored in.

There is no bottoming out any time soon; B&N made it clear when they said they woud continue to close stores and reduce their total count of stores for the next ten years.

What they are doing is managing a forced downsizing and trying to avoid a Borders' style implosion. Stability, if it comes, is years away.