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Originally Posted by ZodWallop
Overall I don't have alot to debate. But I do think connecting all the brick and morter stuff to the future of the Nook is a leap.
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They are owned by the same people and, more importantly, funded by the same pocket.
If forced to triage operatings, what goes first? Nook, bookstores as a whole, or B&N.com? Nooks survives, oddly enough, on it's small size and minimal commitment; it costs very little to keep around. But that also limits how much money they can throw at it.
Daunt has a to-do list of projects and, unless he's lying, revamping the stores and
maintaining free cash flow is tops. Cash flow pays reht and employees. Profitability can come later; he needs to maintain total sales volume because, after all, pbook prices are tied to volume. His talk of growing the nujber of stores is him telling the publishers that the new stores will carry less books each but he'll make it up to them with less returns and (maybe) more stores.
Nook costs don't depend on volune, thanks to agency; it can be backburned until job one is under control. Which it isn't.