Barnes & Noble Shares Down 45% in 12 Months

[ZodWallop]

Originally Posted by geekraver

Funny thing is, if B&N offered 20-25% off (without requiring payment for a loyalty program) I'd probably buy way more books there. So the solution could be staring them in the face. Half Price Books seems to have figured this out, as they have added new titles at a discount, and they seem to be thriving. But B&N stores won't even match their *own* online prices. If they fail its largely their own doing, IMO.

Maybe they could adopt the policies of Crown Books, which used to discount every book they sold. Even if it was just 10% on a paperback, it made sense to buy from Crown vs. their competitors.

It's too bad family squabbles shut them down. I wonder how they would have fared otherwise?

[Fbone]

I routinely receive B&N emails offering coupons for 15-20% off. Last week they sent a 25% one. I guess one needs to be on their email list.

[rcentros]

Originally Posted by Fbone

I routinely receive B&N emails offering coupons for 15-20% off. Last week they sent a 25% one. I guess one needs to be on their email list.

I see these also – never good for Nook devices or books.

[Apache]

Originally Posted by rcentros

I see these also – never good for Nook devices or books.

And they wonder why I never use them.
Apache

[4691mls]

Booksamillion coupons are never good for ebooks either.

[rcentros]

Originally Posted by 4691mls

Booksamillion coupons are never good for ebooks either.

I wouldn't know how to use those "things" with the paper connected at one end – kind of like memo pads, but they've already written on all the sheets.

Actually, my daughter bought me the Complete Calvin & Hobbes Collection for Christmas. Incredibly nice set of four books. A little later I was talking to my Dad about them (at 84, he still likes Calvin & Hobbes also) – while talking I was looking at the pages they'll let you see for free on Amazon. My daughter comes in, "Dad, use the books!" She will only read paper books. She does not like eReaders.

[Cinisajoy]

Originally Posted by rcentros

I wouldn't know how to use those "things" with the paper connected at one end – kind of like memo pads, but they've already written on all the sheets.

Actually, my daughter bought me the Complete Calvin & Hobbes Collection for Christmas. Incredibly nice set of four books. A little later I was talking to my Dad about them (at 84, he still likes Calvin & Hobbes also) – while talking I was looking at the pages they'll let you see for free on Amazon. My daughter comes in, "Dad, use the books!" She will only read paper books. She does not like eReaders.

My youngest is the same way.

[Tony1988]

Originally Posted by geekraver

I work 2 minutes walk from a large B&N in a *very* affluent area (Bellevue, WA). I love spending a half hour in the store at lunch hour several times a week. The store wasn't exactly bustling a year ago but its positively dead now, with more staff than customers. There was a Starbucks semi-attached to it, and that has closed down - when all the other Starbucks in the area have a constant stream of customers. Every time I visit I am surprised it is still in business. Even I rarely buy books there - why would I pay full price when I can get Amazon to deliver the book to me next day for much less? And now there is an Amazon brick-and-mortar store 5 minutes walk away. It's soulless, and has 1/10th the selection, but its probably going to pull enough of the remaining business that we're talking days or weeks, not months, before the store shuts down.

Funny thing is, if B&N offered 20-25% off (without requiring payment for a loyalty program) I'd probably buy way more books there. So the solution could be staring them in the face. Half Price Books seems to have figured this out, as they have added new titles at a discount, and they seem to be thriving. But B&N stores won't even match their *own* online prices. If they fail its largely their own doing, IMO.

I don't know what books you buy....but everything I have checked at Amazon and BN Is about the same. Amazon is not the great savings place everyone makes it out to be...I would also rather pay a bit more for many items in a physical store due to easy returns ...mm

[geekraver]

I buy a lot of technical/programming paper books. They typically run $40-$50 each at B&N stores, and about 30-40% less on Amazon.

[fjtorres]

The verdict is in on their holiday sales:

https://the-digital-reader.com/2018/...-revenues-6-4/

B&N today reported holiday sales for the nine-week holiday period ending December 30, 2017.Total sales for the holiday period were $953 million, declining 6.4% as compared to the prior year. Comparable store sales also declined 6.4% for the holiday period, while online sales declined 4.5%.

Entering December, the Company was encouraged by the comparable store sales improvements throughout the second quarter and into November. However, sales trends softened in December, primarily due to lower traffic.

Not. Good.
Note that non-book sales declined worse than books. And that merchandise isn't on consignment, like books. That will produce a charge on earnings as they liquidate the unsold toys and trinkets.

Worse, as pointed out in the comments:

The big red alert isn’t the total sales numbers but rather “aggressive expense management”.

In a retail environment, that translates to lower employee costs (typically, by reducing floor staff hours), higher coop fees (expect another S&S style catfight), and more store closures/downsizings.

“Aggressive expense management” is not a prescription for higher sales volumes. Especially at a time when 18 states are increasing entry level minimum wage.

B&N headwinds are only getting stronger.

A company that relies on consignment stock and doesn't do much if any advertising doesn't have much in the way of manageable expenses other than staff and rent.

Edit:

Note that B&N's decline (even online) comes amidst a market of slight growth for pbook sales.

https://www.publishersweekly.com/pw/...ampaign=buffer

Their decline isn't because people aren't buying books but rather because people are choosing to buy them elsewhere.

[ZodWallop]

The more I see of this the more I think they would be better served by moving to smaller stores. It would give me a reason to go back inside the mall again.

I also could see the upside of a Nook/Kobo merger, though I doubt that would happen.

Of course, what do I know about retail operations?

[Fbone]

Originally Posted by fjtorres

Their decline isn't because people aren't buying books but rather because people are choosing to buy them elsewhere.

And possible greater discounting by B&N. Some of their holiday promotions seemed to be more aggressive than years past.

People could be buying more but spending less. It's a shame unit sales are not reported.

Looking at my purchases this year, every ebook I bought was below cost and a loss for the retailer.

[fjtorres]

Originally Posted by Fbone

And possible greater discounting by B&N. Some of their holiday promotions seemed to be more aggressive than years past.

People could be buying more but spending less. It's a shame unit sales are not reported.

Looking at my purchases this year, every ebook I bought was below cost and a loss for the retailer.

Could be.
But the report specifically cites reduced traffic during the holidays.

Entering December, the Company was encouraged by the comparable store sales improvements throughout the second quarter and into November. However, sales trends softened in December, primarily due to lower traffic.

Generally traffic is a proxy for unit sales.
So if they truly were discounting like crazy either the message didn't get out or sales would've been worse without it.

The trend of ever lower year to year traffic is a reflection of the fact that holiday pbook gifting reportedly isn't as prevalent as it used to be in past decades. The bookworms that used to be recipients have moved on to digital, making pbook gifting riskier.

[ZodWallop]

Originally Posted by fjtorres

The trend of ever lower year to year traffic is a reflection of the fact that holiday pbook gifting reportedly isn't as prevalent as it used to be in past decades. The bookworms that used to be recipients have moved on to digital, making pbook gifting riskier.

I think this is true, though I haven't done any research to back that up besides my own life experience.

E-readers are a niche product. But the heavy readers I know all use one. I used to get books every Christmas, but haven't for years.

[fjtorres]

The decline in pbook gifting has been documented for years. As far back as 2013 the UK saw a 15% decline from 2012.
http://www.telegraph.co.uk/culture/b...s-in-2013.html
Since then "traffic decline" is a regular feature of holiday book sales post-mortems.