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, Kohls, 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.
As I posted earlier, exactly! The bookstore EXPERIENCE is a very valuable business asset. Bookstores just have to realize that they are not going to make money on physically selling books!
But people will still pay for the bookstore experience if these companies will figure out ways to monetize it. I suggested, for starters, more emphasis on the cafe and creation of performance venues inside the bookstore (not the present just-stand-a-guy-with-a-guitar up in the corner thing)where people pay a small ticket price to see the show.
We had a coffee house where we used to live that had a performance venue in the back. It booked all kinds of acts, local bands, improv, etc. and charged a ticket price comparable to going to a movie. Since the venue was set up with a lot of tables as well, most people bought food at the cafe before or during the show. In this particular place, you could still hear the band out front, so some people came, bought food and listened to the show for free.
This coffee house was very successful financially. Imagine if this was done at many of the large bookstores and you knew you could pretty much always find a live music show or family-friendly improv to go to without doing the bar scene. I think this could become quite popular. Also the acts do a lot of self-marketing for their shows or may have a built-in following.
Call me old-fashioned but I prefer a book in hand over an e-reader anyday. I’ve tried audio books and didn’t like them. Besides, once it is in print and in my house it can’t be revised or censored. My all-time favorite is Island of the Blue Dolphins. Still have a copy.
I do use Calibre. I’ve been very happy with it, but just for basic conversions to mobi format. I’ll look into the other functions, thanks.
Also keep in mind, if you find something on the Internet you feel would be a good book or article you want to keep (don’t bypass copywrite laws...), you can easily turn it into a Kindle book.
Copy/Paste it into your word processor and save it as an HTML file. Calibre will add HTML files to its database. Once in Calibre it’s easy to convert the HTML file into an ePub, MOBI or other book format. It also pertains to PDF files.
We’re homeschoolers, so we buy books. Actually, we buy LOTS of books. When in a pinch or if I need to do more specific research on a book, I’ll buy from a brick & mortar.
A typical experience at a brick & mortar book store when I wanted to purchase a good dictionary that included derivations. I went to a B&N. I looked through every dictionary (of size) on their large shelf. ONE contained derivations, and they were pretty minimal. The price was huge (hugh, even).
Most of my book purchases are from chistianbook.com, abebooks, or alibri. All would be used if they were available.
Opposite for me. Arthritis makes it almost impossible for me to hold and manage a physical book for any length of time. I LOVE the Kindle. I can even read laying down in bed, the pages are very easy to “turn.”
I also spend a lot of time on the computer, but to me Kindle is not anything like using a computer screen. In fact, some say, why buy a Kindle when you can read ebooks on your computer? Nope. NOT the same AT ALL!
Forgot to add that Kindle also makes it very easy to change the text size as needed. Sometimes I even read without wearing my glasses! Yet no need to buy special texts.
You also get free books on Fridays. There's lots of nice promotions for the nook and the stores.
There are some B&N haters here on FR because of the overall leftist lean of publishing and bookselling, but I am distressed at the possibility of losing more bookstores. I happen to love Barnes and Noble, and I never do business with Amazon for reasons of my own. Amazon is evil.
Every time I'm at a B&N, it seems to be doing very well. The coffee line is long, and people are bustling buying books and DVDs and CDs.
This is sad. Do we just get the book section of WalMart now?
I miss the video rental stores for the same reason.
You should sign up for the daily newsletter at pixelofink.com — I signed up about 2 weeks ago and I’ve already downloaded over 100 free books since. And that’s just the ones I thought I would be interested in, there were many others that were free that I didn’t bother to download. Each daily email will have links to Amazon and B&N free and bargain books, and many are detective and sci-fi. Got a free Vince Flynn novel the other day!
Just curious - what’s wrong with Amazon?
I will. Thanks!
I briefly activated the wireless, only to see if it would sync the time, and it did.
The initial charging didn't take that long, but since you said it took yours a while, I was perturbed that my "initial" charge didn't look like it would last 6 days, let alone the advertised [up to] 60 days.
The second charge is lasting much longer.
That ghosting is a real pain. I think it comes from changing pages too fast, as in touching a button/screen inadvertently, and trying to return to the original page immediately. Sometimes, the only way to fix it is to off/on it. Changing apps might make the ghosting worse.
That is a stupid statement. Then there is no reason any physical retail business should exist. We can buy anything we want or need online including groceries and we can work at distribution centers or for UPS or Fed Ex.
>>I’ll be dammed if I’ll stare at the blasted thing to engage in one of my favorite pleasures!<<
Hear, hear!
lol
The publishers' business model is unsustainable in a time where authors can put their books up directly on Amazon.
One of my favorite bloggers (freeper "wretchard") sells his novels that way. Freeper Travis McGee sells his books from Amazon as well as from his own website, etc.
Big publishers used to be needed, because big printing presses used to be needed. In the ebook era, what's needed is a good editor (who can be retained freelance), plus a way to get people interested in your writing style.
Baen Books (science fiction publishers) has a nice setup where you can read the first few chapters of a book online, and then decide whether to buy.
“We shop at both Pennys and Kohls. As with you, we buy a lot of clothes there. Also appliances when it comes to Kohls. We just picked up a new toaster and electric grill at Kohls after the Christmas holiday. Really good prices.
My guess would be, they really have to discount deeply due to the economy and thats whats hurting their profitability. I may be wrong, but it would seem that way to me.”
I tend to agree. I buy a lot of clothing from Kohl’s (in my town, I’m more likely to find stuff that’s a bit different and more stylish there), and some things from Penney’s. At both stores, everything is always on sale and the prices are very low.
One thing that would make ebooks shine would involve the copyright-holders of long-out-of-print books making them available as ebooks. It takes a large anticipated market to justify a print run. A book can justify its electronic existence on a server disk with just one purchase per year.
“My husband and I feel the same way. He reads at least 3 books a week and wants no part of a Kindle or Nook.’
Same here. I want a good solid book I can put on my lap and curl up with, not some plastic gadget I have to hold in one hand and manipulate with the other.
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