Tuesday, November 26, 2013

Jumping on a sinking ship.

The Barnes and Noble strategy continues to mystify me.

I'm pretty sure that a full on bookstore B & N would still be viable if that's where they spent their time, space, energy and money.

So the first ad on TV I see for the holiday season?  An ad that is mostly about the Nook.

But in the latest quarter of the year, their sales in the Nook were down 32.2%.  Their sales in digital content were down 21.2%.  Their sales in digital accessories were down 41.3%.

Meanwhile their sales in actual books were down 3.7%, which they attribute to the drop off in sales of 50 Shades of Gray.  Which I believe.

So putting yourself out of business to support for a failing model, and destroying what is a viable model in the meantime.   Why?  WTF?

1 comment:

Anonymous said...

I wonder how long B&N's got left before they go the way of Borders. 5 years? 3?

Personally I think they'd be fine if they just downsized most of their stores into leases half the size of their current ones. It's this behemoth model that they can't sustain.