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Originally Posted by fjtorres
Borders tried to diversify, no?
CDs, DVDs, stuffed bears.
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Yes, but diversification characterized by poor execution and a revolving door on the CEO's office, with no coherent long term plan. I really wonder what their board was thinking, if "thought" is the term to apply.
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Thing is, is a bookstore still a bookstore if it makes its money off everything *except* books? At what point does stocking books become a public service or loss leader instead of your core business?
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If you aren't making
some money selling books, you're in the wrong business. The question is whether you can make
enough money selling
only books. The answer to that question appears to be no.
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Cause if books are just a traffic-draw for your *real* profit center... Well, that is why Target and Walmart sell books.
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Er, what do you think Target and Walmart's real profit centers are?
I think it's a fair assumption they make money selling books. Product lines that don't generate revenue at least sufficient to cover the space devoted to them aren't likely to be retained.
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Is B&N going to become just another dry goods retailer masquerading as a book store?
I dunno...
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I don't either, but there's a market for books, paper books aren't going away in the near future, and there will continue to be opportunities for retailers selling them, even in brick and mortar environments. B&N is better placed to survive than most bookstores.
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Dennis