Dive Summary:
- As the last big-box retailer still standing, Barnes & Noble store sales declined by 8.2% in the last quarter while its digital business fell a shocking 12.6%.
- The failure of the Nook digital e-reader and tablet to compete against Amazon's Kindle and the Apple IPad is concerning to analysts as its purpose was to bring traffic into stores, however it did little to bolster store sales.
- Barnes and Noble will likely close stores to minimize its losses rather than shrink its store footprint according to Howard Davidowitz, chairman of Davidowitz & Associates Inc.
From the Article:
"...The overall drop in the bookseller’s same-store sales can be at least partially attributed to tough year-over-year comparisons with Barnes & Noble’s last holiday season, when the chain profited from the liquidation of its main rival Borders, according to Peter Wahlstrom, an analyst who covers the chain for Chicago-based research firm Morningstar. But the fall in the sales of NOOK products can’t be ignored, given that the tablet was created to allow Barnes & Noble to compete with digital rivals Apple and Amazon.com..."
