Symbol Lookup
Register | Login My Watchlist | My Account | Logout
to View Your Portfolio

Pre Market | Dow Jones | Gold | Newsletters | Learn

Barnes & Noble Plans to Close down One Third of Its Bookstores in Next Decade (BKS)

Monday, January 28, 2013 8:26 AM
Barnes & Noble IncAccording to the Wall Street Journal, a top executive from Barnes & Noble Inc. (NYSE: BKS) has said that the book seller will shutter a third of its retail stores in the next decade. Mitchell Klipper, the Chief Executive of Barnes & Noble while speaking to the Journal gave a very detailed outline on what the Company intends to do with its numbers of bookstores. “In 10 years we'll have 450 to 500 stores,” said Klipper, adding that the forecast assumes close down of 20 stores annually in next 10 years, according to the WSJ. As of January 23, 2013, Barnes & Noble operated 689 retail stores and 674 college bookstores across the States. While the bookstores chain has been shuttering nearly 15 stores annually since last decade, it has also opened 30 or more stores simultaneously until 2009. However, in the recent past, the opening of new stores has mainly withered as more and more readers switch towards digital devices or ‘e- books’ such as Barnes & Noble’s Nook,’s (NASDAQ: AMZN) Kindle and Apple Inc.’s (NASDAQ: AAPL) iPad. Thus far, Barnes & Noble opened only two new stores in the current fiscal year. Klipper believes that distribution network with 450 to 500 bookstores is a good “business model”, adding that company needs to keep a check on overheads and “get smart with smart systems”. The move comes at a time when investors and analysts have started doubting Barnes & Noble’s future. Just last month, the company reported an 11% decline in sales during the key holiday-season period. Same-store-sales, a key gauge on any retail chain’s performance, also slumped 3.1% in the same period. Barnes & Noble’s market share in the print book business first eroded due to intensifying competition from discount book seller, Later the proliferation of e-books usage further dented print-book sales. A data provided by market research firm Nielsen BookScan showed that unit sales of print book in the U.S. market plunged 9% last year while they have plummeted 22% from 2007. Now, adding to the Company’s woes is intensifying competition in the e-books business. With large number of players already present in this field such as Apple Inc,, Samsung Electronics and Google Inc. (NASDAQ: GOOG), the margins and sales have taken a beating. In the just concluded holiday season quarter, Barnes & Noble reported that online as well as stores sales for Nook dropped compared to the same period of last year.

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2015 the year you get RICH!

Latest Headlines

U.S. crude oil falls more than one percent on supply surplusU.S. crude oil falls more than one percent on supply surplus
SEOUL (Reuters) - U.S. crude oil futures fell more than one percent in early Asian trading on Friday, under pressure from concerns of a supply glut, although market activity was subdued due to a U.S. ...
Japan inflation continues slide, spending slumpsJapan inflation continues slide, spending slumps
TOKYO (Reuters) - Japan`s core consumer prices fell for the third straight month and household spending slumped in October, underscoring the fragile nature of the economy and keeping policymakers un...
Japan Oct jobless rate falls to 3.1 percent Japan Oct jobless rate falls to 3.1 percent
TOKYO (Reuters) - Japan`s jobless rate in October fell to 3.1 percent, data from the internal affairs ministry showed on Friday. The median forecast was for 3.4 percent. The jobs-applicants ratio ...
Dollar subdued in holiday trade, euro sees little reprieveDollar subdued in holiday trade, euro sees little reprieve
SYDNEY (Reuters) - The dollar, euro and yen found themselves in familiar territory early on Friday, having shuffled sideways in thin trade with U.S. markets shut for the Thanksgiving Day holiday. ...
BTG Pactual redemptions rise in day after CEO arrest: sourceBTG Pactual redemptions rise in day after CEO arrest: source
SAO PAULO (Reuters) - Clients stepped up withdrawals from Grupo BTG Pactual SA`s money management unit on Thursday, according to a source with knowledge of the bank`s strategy, as Latin America`s larg...

Loading Headlines...

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.

{localized={en_US=Terry}, preferredLocale={country=US, language=en}} {localized={en_US=Scott}, preferredLocale={country=US, language=en}}

Terry Scott
CEO of StockMarketWatch

View Profile

Learn the Stock Market

Sharper your stock trading skills with our stock market education section.

Be a Better
Trader, Today
PreMarket PRO Our New Streaming Realtime Pre-Market Product -- Click Here to Learn More