Forum Moderators: buckworks
The Borders Group, one of the nation's largest book retailers, announced a new strategic plan Thursday to close nearly half of its Waldenbooks stores, sell off or franchise most of its 73 overseas superstores, sever its relationship with Amazon.com and start its own online retail site.The company also reported a dismal fourth quarter that ended with a loss of $73.6 million, in contrast to a profit of $119.1 million in the period the year before.
Borders Closes Stores, Start Own Web Retailing [news.com.com]
On the other hand, most of the Waldenbooks stores are too small, and don't have a diverse enough inventory to attract a lot of customers. So closing them in favor of the larger Borders stores would be a big plus.
see this as a smart move. Going online will save them money in many ways, wages, rent, land tax etc. Books are one thing I do buy online regularly, and unlike other products, I don't really need to hold the book in my hand before I'm willing to buy
I like Borders because generally the people who work there have been very helpfull and knowledgeable. They tend to read books themselves or can help you find what you are looking for.
Amazon.com is great for when i know what i need, but nothing beats a book store, friendly staff and a cup of hot Joe and some relaxing music while browse for the next great book/story/adventure.
Not to mention i've meet & networked with a bunch of great friends at the bookstore.
nothing beats a book store, friendly staff and a cup of hot Joe
nothing beats a book store, friendly staff and a cup of hot Joe
Yes, nothing beats stepping over a bunch of dead beats that won't buy a book that confuse a Borders with public library. Nothing like hanging out with a bunch of caffeine jazzed cheapskates to start the day.
FWIW, I didn't think anyone went into a Waldenbook past 1990, don't think I've seen one in years, so that's probably a good move on their part.
apparently they aren't enough Byrons, and what's good for some, is not necessarily good for Borders' shareholders :)
I vote for smart move!
sever its relationship with Amazon.com and start its own online retail site.
I'm all for them cutting some of their brick and mortar dead weight but they should focus on what their good at and keep their 'super affiliate' relationship with Amazon.
Yep, Amazon has many years of experience with warehousing and fulfillment. Why is Borders reinventing the wheel when the percentage they pay to Amazon handles the infrastructure question. Borders could go out of business while trying to figure out their web retailing infrastructure.
Yes, nothing beats stepping over a bunch of dead beats that won't buy a book that confuse a Borders with public library. Nothing like hanging out with a bunch of caffeine jazzed cheapskates to start the day.
Funny you call people who read books dead beats.
I agree, close all the Walden bookstores, there just isn't anything left in them besides romance novels and comic books.
I've meet more dead beats hanging out in forums than i could ever say i've meet at a book store :)
Most of the independent bookstores where I live have been long wiped out. This type of move by Borders is a walmartization of the book industry to the web. And what that does is create more opportunities for local indie bookstores again. Ones that can provide either niche markets, or solid service.
I agree - dozens of people too cheap to buy the book, just hanging out for a couple of hours. I come in to browse books before I buy and I need to stand the whole time because someone’s set up camp for the day.
(Then they put what is essentially a used book back on the shelf.)
Funny you call people who read books (without paying) dead beats.
Funny you call people who read books dead beats.
If you read them and don't buy them, you're a dead beat.
Besides, I get books from Amazon cheaper and with Amazon Prime, shipping is free the rest of the year and we use it a bunch. Doubt Borders online efforts will compete with that.
I like to look at the book before I buy it. Sometimes the ads and promos for a book just don't tell the whole story.
Borders have essentially been saying to their online users: Amazon is the authority on the web for books, not us: why not go direct to Amazon.com next time - heck, it might even be cheaper on their site (as we're selling via a third party).
- Just like how Yahoo promoted Google when it used Google results.
Why bother using a third party when you can go straight to the company offering the service? People also think that you'll get things cheaper by cutting out the middle man.
Solely due to Amazon's success however, Borders do have an opportunity online. Amazon's american site sells many products - books is only a small part. Borders could focus on selling online books - becoming "the" expert in only selling/recommending books - at the expense of Amazon who are busy trying to do everything.
Many people who just want to buy books would then go to borders website as it would be a quicker process (no need to select the books tab) and as Borders specialise exclusively in selling books.
Borders could also integrate things into their offline stores better - e.g. a membership card/id that gives you points and shows what you bought both offline and online.
P.S. I buy non-fiction books from Amazon only. Even the large Border stores don't always have the books I want. And even when I see an interesting book in the shops, I'll often go home and buy it on Amazon anyway - it could be cheaper online, there could be a new edition out and I can read other peoples reviews on it.
[edited by: TravelSite at 6:42 pm (utc) on Mar. 24, 2007]
We hit Borders about once a month. I check out books that have been suggested, read a bit, and buy it if I intend to read the entire book.
My 9 year old will spend an hour or so checking out books and we end up walking out with 5-6 books for her to read that month. By the end of this year, she'll have read and I'll have bought at least 75% of her current addiction, the Nancy Drew series.
Not everyone seemingly camped out is a deadbeat.
As a book reviewer, I also get free review copies from many publishers. And I make a lot of money from Amazon's affiliate program.
I've never been that excited by the Borders shops in Sydney - Abbeys and Gleebooks are still better for my kind of books - but it will be interested to see how they go as franchises or independents.
1. some buy books, but apparently not enough people, otherwise they would have kept the stores.
2. while huge bookstores could be good for the public, why should Borders shareholders pay for the this public service? Talk to your representatives and see if they are willing to subsidize :)
I think the question is what does Amazon charge Borders?
Why go to the bookstore when you can pay half the price at Amazon, get next day shipping
why should Borders shareholders pay for the this public service? Talk to your representatives and see if they are willing to subsidize
wrong on both counts: one, Borders changed the policy,apparently to please shareholders so it worked the other way around.
Second, they aren't being paid anything, they OWN the company. They put in hard cash they could have invested somewhere else, so they aren't being paid jack; at most they are getting what's theirs.
It's nice to get out out of the house and life doesn't always have to be about saving every penny.
You don't drink at home alone do you, just so you can get alcohol for pennies?
It's nice to get out out of the house and life doesn't always have to be about saving every penny.
You don't drink at home alone do you, just so you can get alcohol for pennies?
i know slightly off topic, but i agree with jessejump, this is where bricks and mortar can score over online, although i suspect it applies more to smaller companies.
>>Borders could go out of business while trying to figure out their web retailing infrastructure.
yes they could but if they don't they'll always be slaves to amazon
Couple of reasons. First, up here in Canada, Amazon isn't half price. In fact, by the time I've paid shipping on the books I buy, buying online is actually more expensive. So I don't save any money. In fact, my local indie bookstore gives me a 10% credit on everything I buy. The online vendors just don't compete on price.
Secondly, as a fairly heavy book consumer, and someone who uses them for entertainment, saving a buck or two on books isn't really an issue. Who'd think that saving $1 on a movie was a good idea, if the movie sucked? As I noted, my local bookstore knows my tastes. And researches books for me. So when I walk in, I say 'got any books?' and the response is a walk over to the sci-fi section and she starts pulling out books she's brought into stock with me in mind. Contrast that with a trip to my local monster book shop. The 18yo's just came from working the cell phone booth at the mall, all they know is where the sections are located. That difference in service is something I'm actually willing to pay money for. Again, not that I have to - I buy locally cheaper.
Thirdly, I buy books on impulse. I don't research the heck out of them. It's friday night and I want some reading for the weekend. No time for anything but the local bookstore.
What actually compounds all this is the fact that with the kind of service I receive, I end up buying 3-4 books everytime I go in, not the '1' I went in for.
All that being said, there's a time and place for the big and online folks. Computer books are a good example. Commodities, and relatively expensive. Online is great for that. (I still buy this stuff locally, but that's my loyalty speaking). What this situation illustrates is that there's coming new niches available for smaller bookstore players. I read somewhere that niche stores near walmarts actually do even better when walmart comes to town. I think this is the same.
