Quote:
Originally Posted by DMcCunney
Whether a big store makes economic sense depends on where it is. Part of the issue with Borders vs B&N is that they were trying to compete in the same markets with the same approaches. There may be a market to support one superstore in an area. There is unlikely to be room for two.
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Dennis
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I'm not sure that geography can save either chain, *long term*.
A Borders closure will clearly help B&N given that ridicuous 70% overlap rate.
But the number I saw said B&N would be capturing 19% of the borders market share. And they'll be losing about that much to discounters and ebooks in just a few years.
That's why I think a Borders implosion will only buy B&N time to switch to a sustainable business model.
(shrug)
I just don't think there are many, if any US locations where stocking tens of thousands of different books will be competitive with online. Places with the affordable rent will lack traffic, places with the traffic will be too expensive to operate. And consumers are *not* going to swallow $50 hardcover prices.
Even B&N's optimistic analysis from today's press release sees quick and significant decline in their volume of print sales. Their strategy clearly states they see attrition and consolidation; they just intend to be the last vendor standing, is all.
Time will tell.
Peace!