bookseller analyst

Why We Doubled Our Position in Borders

The comments in this article are superficial at best and show a real lack of understanding about Borders. The reason that B&N is succeeding and Borders is not reflects several things: B&N has a superior inventory system while Borders is 1980s stuff, B&N has superior logistics while Borders struggles, In most markets B&N has superior locations. Both chains fail to give their stores a local feel and in books that is important. There are high costs associated in returning merchandise--yes the chain gets almost full credit but it pays the shipping both ways.

Borders brought in George Jones to set a new strategic plan and turn things around, but now he is blaming the economy for Borders failures. I worked for Borders recently and have worked for other chains and independents and Borders has the weakest merchandising I have ever experienced. Their idea of a concept store is interesting but they promise high customer service yet have cut positions and payroll in their stores.

I can see no scenario that rescues Borders except that bookselling is a sexy business and may attract an MMTB investor (more money than brains). Where are B Dalton, Brentanos, Crown Books, Scribners, Doubleday now?