Quote:
Originally Posted by Xerxes
This I can agree on. I don't know about anyone else but in Houston, B&N sometimes feel about the as a Starbucks. If you aren't in the boondocks, there is probably a Barnes and Noble around. Not saying that's a bad thing, it's convenient. If they did buy Borders they'd probably end up shutting more of those down than using them. Like you said, Win-Lose. If BN keeps on, Borders will die, it's just that they keep grasping for air and trying to live. Only reason to merge is put them out of their memory.
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Convenience rules.
If I'm B&N, and I'm seriously thinking about acquiring Borders and can get the funding, I'lll have done my due diligence, and my first action will be to close a number of stores. They may not all be Borders - I'll want the best stores in the best locations, so B&N outlets might get the chop. But ultimately, what I'm buying is some economies of scale, some penetration of geographical areas I'm not in, and a reduction in competition for increasingly scarce customer traffic. Bookselling has been in a state of consolidation for years, and this would be just one more example.
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Dennis