Posted on 01/07/2012 6:22:34 AM PST by Kaslin
Retail sales are up but profits are down as noted in Profit Warnings at Target, Kohl’s, J. C. Penney, American Eagle
However, shrinking profits are one thing, huge losses another.
On Thursday, Barnes & Noble increased its projected loss per share for the current fiscal year to between $1.10 and $1.40, from the 30 cents to 70 cents it reaffirmed one month ago.
I have commented before that brick-and-mortar book stores are in serious trouble. It's time to move Barnes & Noble to the top of the list.
The Wall Street Journal reports Barnes & Noble Seeks Next Chapter
The nation's largest bookstore chain warned Thursday it would lose twice as much money this fiscal year as it previously expected, and said it is weighing splitting off its growing Nook digital-book business from its aging bookstores.
Ironically, Barnes & Noble had been one of the first to recognize the potential of digital books. In 1998, it invested in NuvoMedia Inc., maker of the Rocket eBook reader, and the bookseller actively supported digital-book sales. But in 2003, it exited the still-nascent business, saying there wasn't any profit in it.
It wasn't until 2009 that Barnes & Noble re-entered the business, introducing its Nook e-reader. By then, Amazon had been selling its Kindle device for about two years, and was offering best sellers for $9.99, a fraction of what hardcover best sellers are priced at.
Apple introduced its iPad tablet in January 2010. Amazon responded with its competing Kindle Fire tablet this past September, and in November, Barnes & Noble introduced its Nook Tablet.
To promote the Nook, the retailer returned to national TV advertising in 2010, after a 14-year hiatus, buying spots on popular programs such as "American Idol."
The heavy Nook investment has squeezed Barnes & Noble's bottom line.
Barnes & Noble said in a statement on Thursday it was "in discussions with strategic partners including publishers, retailers and technology companies in international markets." It said that could lead to expanding the Nook business overseas.
What's the "Next Chapter"?
The Journal reports Barnes & Noble is also considering a plan to spin off its Nook business. If it does, can it make a profit selling books the old-fashioned way? If it doesn't, does if have the resources to compete against Amazon and Apple?
Either way, the "Next Chapter" for Barnes & Noble just might be bankruptcy court. It took me a second to catch the play on words in the WSJ article because the first thought I had was "Chapter 7" and a word was missing.
Bear in mind, even if that happens, it can take years to play out. GM was terminally ill for a decade before it succumbed to the inevitable.
I haven’t researched this much...but...does Kindle have much access to internet??? (I know mine always says “experimental”
My guess is that they’re fully aware that they’re “losing money” on many prime customers. But I think it’s a strategic move to completely disrupt the marketplace. You see now that all sorts of enterprises are on the ropes - Best Buy being a very prominent example and of course B & N. If they can drive out the competition with prime and lose a few $$, they probably figure it will pay off in the long run. For now, it makes sense to get on the prime bandwagon and ride it for as long as it’s there.
Went into our local books-a-million which took over the Borders store.
Pretty much the same format EXCEPT the workers were clean and not artsy and there were as many if not more conservatve books as other kinds.
First time that I walked into the building that I didnt become frustrated.
I have purchased MUCH more merchandise from B&N via my Nook than I ever did in brick & mortar. I’m on 8th book of the Wheel of Time series, and I have bought many more. The convenience of purchasing the next book within seconds of ending a book is a huge advantage. I hope B&N can keep their Nook business.
Not surprised. Honestly, I wonder if Amazon is as healthy as
they claim.
Not surprised. Honestly, I wonder if Amazon is as healthy as
they claim.
Not surprised. Honestly, I wonder if Amazon is as healthy as
they claim.
Good news. Be a good patron so they get the message!
Because the publisgimg houses are not comfortable with ebooks, and want to limit the market. Sent from my Kindle BTW
Mine's the Kindle Keyboard WiFi. That "experimental" link is what you use. I first went to Amazon's Kindle Apps and bought an Internet browser for $0.99 because someone had posted it worked better than the default browser. I can't comment on that because I never tried browsing until after I installed that application. But the Kindle is set up to browse without any additional applications.
The more detailed or involved the websites, the longer it'll take for it to download and be available. On involved websites (a lot of data on a page), it will show the entire page and give you windows of areas you can click on (or move around), with which you can zoom in. That's a nice feature.
FR sets up pretty fast. I've only gone to FR (made one post through my Kindle), my email client to check my email, and the few sites I manage. My intention is to use the Kindle when I want something handy to show people our sites. One's our Kiwanis club, one's our American Legion post, one's a site for our synod parish nurse organization, and one's a local gardening club. There's also my personal site (a history site). I just keep them bookmarked on the Kindle in case I'm using it when someone asks about them (hasn't happened yet... :>)
In short, yes, the Kindle Keyboard has full access to the Internet. It's limited by the download time and size of the website. I wouldn't recommend it for everyday browsing, but for checking things out on the quick, it'll get the job done.
I have a feeling that a million book titles could disappear overnight if they were only on digits.
What some economics call “creative destruction.” Yes, I will have fond memories of Barnes and Noble, but I also have fond memories of black-and-white television and the Apple IIe.
**Find a technological way to turn their stores into e-versions of what they were up to this point.**
BTTT!
Totally agree.
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