[fjtorres]

Less shelf space? So what?
That would simply be right-sizing.
Between online and ebooks there is less need for shelf space.
Besides once you factor in returns there is an excess of 25-50% shelf space out there. Pure waste. Even after B&N reduced the floorspace they devote to books.
Also, the BPHs are reducing print runs and the mega-mergers are going to mean less titles total. Add in the 25% of business that has moved to digital and truth is there is a glut of wasted shelf space out there. Most of it inside the B&N warehouse stores.
Truth is the entire consignment system needs to go before anybody need worry about shelf space. None of the lost shelf space at Borders and B&N was generating any actual net revenue. And there is still loads of wasted space out there.
Plenty of downsizing still to come at B&N.