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Old 01-07-2012, 07:56 PM   #82
fjtorres
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Quote:
Originally Posted by Dimwit View Post

What the drag for B&N is right now is that they have too many B&M locations in bad areas. They have to shrink or the economy has to pickup to make those viable. Until that happens, cash flow is too tight.
Location is a part of B&N's overhead problem but the fact that they are diversifying their catalog beyond books points to the *size* of the locations as a bigger problem; they are simply not selling enough books to justify the size of the stores. Revenue per square foot is down and dropping further.

B&N needs revenue and if Nook isn't doing it fast enough...
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