Quote:
Originally Posted by rhadin
B&N stores won't succeed unless the stores and the online are closer together in terms of pricing. Why spend more to be able to choose from less inventory?
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Key point, that.
It hits at the core divide between casual and heavy readers.
Heavy readers tend to spread their reading across more and more diverse books than most B&M stores can *profitably* stock. They are an entirely different market and they prefer the biggest possible catalog to choose from. When warehouse stores had the biggest catalog, as high as 8-10 times the average independent, the warehouses got their business and loyalty. But those days are gone. Online offers 8-10 times what the biggest warehouses ever did, including used books. Loyalty only goes so far.
That is why B&N needs to go bimodal: big online to serve heavy readers, small but hyperlocal for casual readers. Small B&M, focused on Everywhere Books, is something known to work. Just ask Hudson. The ROI on the added books at the big store just isn't worth it. They'd get the same return at lower cost by integrating online and B&M instead of treating them as separate businesses.
B&N needs to optimize their separate services to match their customers distinct needs and most heavy buyers are already used to online. They just need to treat them well to get their business. Integrate both halves properly--as BEST BUY has done and Walmart is trying--and they'll have a chance. Otherwise...