Quote:
Originally Posted by Kali Yuga
Errr....
2) They can't simply terminate all their leases, return all their books and wash their hands of the brick & mortar business.
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That is the biggest problem B&N (and other "Big Box" retailers) face. Their storefronts are massive fixed costs that are making up an ever-increasing fraction of their operating costs as their pbook sales decline. That is *exactly* the reason Borders wasn't able to find a buyer for even their profitable sites.
Those leases are positively toxic so they have to find ways of monetizing that relatively expensive floorspace.
The one thing they most *need* to do is the one thing they *can't* easily do.
The analysts in question are saying that they don't think B&N can grow their Nook income fast enough to make up the (expected) decline in pbook income. It is up to B&N management to give the lie to that assessment by executing.