LJNDawson.com, Consulting to the Book Publishing Industry
Book Publishing Industry Consultant

Borders and B&N - back in the ring

The Motley Fool yesterday had a great analysis of the problems plaguing both Borders and B&N - and why the competition between the two has heated up. B&N's main issue, financially, is its membership program - it's costly to the bookseller and the rewards for the coupons and discounts it ramped up in the fall of 2006 have yet to be recouped.

Borders, meanwhile, finds itself overextended internationally and with its Waldenbooks chain. By shuttering its overseas stores and Waldenbooks, it can focus on redesigning its US stores and enhancing its logistics/distribution efforts. However, if B&N is engaging Borders in a price war, Borders is going to have less money to fund these projects.

It's been a while since superstores have been exciting. Let the games begin.
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