In my local store, there’s a guy with his fat ass parked on a comfy arm chair back in the arts/photography section, reading a new novel every few days.
The Barnes and Noble bookstore on Shattuck Avenue (near the UC Berkeley campus) suffered that fate. It ended up as a library/study hall/haven for the homeless. It's now a Staples office supply store.
The Barnes and Noble in Walnut Creek, and the Borders bookstore in San Francisco, are still going concerns. Walnut Creek is a relatively prosperous SF suburb whose population has adequate disposable income to buy books, and San Francisco has the tourists with money to spend likewise. I think stores too close to "college towns" have to develop a different business model, or else relocate.
Maybe I should quote that to the regional manager next time I’m in and ask if he thinks saying “That was easy!” all day long sounds like a spiffy career upgrade.