Struggling bookseller Borders Group (NYSE: BGP) has opened up a new concept store as part of its plan to re-invent itself. According to the USA Today, the new prototype store in Michigan contains "a digital center where you can download music or books, burn CDs, research family histories, print pictures and order leather-bound books crammed with family photos - with help from clerks who know how to do those sorts of things and won't embarrass you if you don't."A few problems: Why would anyone go to a store to download music or books or burn CDs when you can do that at home for less money? Leather-bound books filled with family photos? That hardly seems like the kind of thing that will turn around this flailing behemoth.
The problem for Borders has been that it's having a hard time competing with Amazon.com (NASDAQ: AMZN) which is more convenient, less expensive, and offers a broader selections. Features like "Search inside" are further depleting the few advantages that brick and mortar bookstores have left.
I wouldn't bet on Borders' transformation. The company's isn't coming from a position of strength: Borders is a book retailer that's been watching its relevance decline for years and now it needs to essentially change its business model to compete.
Reinventions rarely work, and I wouldn't expect the Borders one to succeed. If the strategy is simply to offer customers more services that they can get for less money on the internet, I'd say this is a turnaround that's destined to fail.
Borders plans to open 13 more concept stores this year.
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Reader Comments (Page 4 of 4)
2-18-2008 @ 6:17PM
Dave said...
Books?? I wait for the movie.lol
2-18-2008 @ 6:23PM
Sandi said...
I have been a member of Doubleday Book Club for over 30 years. The books are discounted and everymonth you get a bulletin with all that is new and old. One draw back is that you have to remember to let them know by a certain date what book you want or not. After being a member for a certain time you don't have to take a book a month. There are times I say no to both selections.
I also like to browse the stores and have ordered at amazon. I have so many books I pass them around to friends and family. I also donate them to the Public Library.
2-18-2008 @ 6:25PM
OldSacred said...
i love borders. they usallyhave no problem finding me out of print books and i like them because if i'm not satisfied withe copy they send it back and don' force you to buy it. i cannot stand the e-reader system i want to hold the book in my hands and books on tape are just for lazy cheaters.
2-18-2008 @ 6:30PM
John said...
Borders used to ahve one of the best Bargain Books sections out there. Stuff you couldn't find on Amazon or at Barnes and Noble. What happened? Today's section looks like it came out of a Goodwill. If I want hackneyed titles that I read 20 years ago, I know where to go.
As for this new digital concept, who cares. Nobody takes pictures anymore and even when we did, half the fun was making your own album, not having some overpaid wench do it for you.
2-18-2008 @ 6:37PM
oshea37 said...
I read all the time but I make use of the library all the time. I also go to garage sales or pass books to my friends and give them any books that are mine and not the library. Reading is wonderful. I also have my favorite authors and I keep a running log on my computer so I don't pick up the same books after a length of time.
Ann
3-12-2008 @ 8:00AM
Zoe said...
I think its a great idea. Why doesn't everyone just DOWNLOAD movies and music? How presumptious and snobby. Most people who have internet access have dial-up and are unable to download large files! There is nothing wrong with that, either; there is something wrong however with selfish spoiled snobs who assume that everyone has the latest technology and there is something wrong with those who cannot afford it. Borders is providing a service to those who want an alternative. Good! We need a variety of choices, it breeds healthy competition between companies.
2-18-2008 @ 6:44PM
sarah said...
i read books all the time, but i find prices for them extremely high, especially if the hard cover is only available. though i don't want to see any book stores close, most soft-cover books can be up to $15-$18. It's crazy!
I usually go to the library and borrow them- can't complain with something being free!
2-18-2008 @ 7:00PM
carol said...
What Gibels said is so right... I can spend hours absorbed in looking at books. There is nothing so comforting as the feel and smell of a fresh book!
2-18-2008 @ 7:14PM
Nick Gallicchio said...
Read that new book Men Without Redemption. Its just as good as the Godfather book.
Men Without Redemption is about a New Jersey mob family in 1952. Talk about reality? The book also has hot and spicy love scenes. It moves into the life of the members of cosa nostra. The story was taken from the streets of reality.
Read the authors Webpage: Gallicchio999.com This book was rated 4.5 Stars
2-18-2008 @ 7:13PM
Nick Gallicchio said...
Try reading Men Without Redemption. This novel is of epic proportion. It goes into the homes of cosa nostra families. The love scenes are hot and spicy.No other author could have written this book.
NIck Gallicchio was for 37 years a union organizer and he has a story to tell.
Read his Webpage: Gallicchio999.com His book was rated 4.5 Stars. Not bad for his book. The book is of epic proportion and the story is engrossing. The characters will stagger your mind
2-18-2008 @ 7:12PM
Dawn said...
I LOVE books and have ever since I was a child; they are among my most precious possessions. I probably have close to a thousand books in my home and I look forward to more. I don't just read them once - there are many I re-read because it's like a visit with an old friend. Give up books I can hold in my hand? NEVER!
Admittedly, I don't buy them all at the top of the line bookstores; I get them whereever I can. I am fortunate that I can physically go to a bookstore some miles from my home and look at a treasure trove of books and have the pleasure of choosing a gem to enrich my mind. Heaven!
I don't like online ordering. I think I have ordered one book over the net. And I don't think I would be pleased with reading for pleasure while propped up in front of a computer screen instead of being ensconced in my favorite comfortable chair. I read too much online as it is. As long as I breathe, I will have a physical book.
For those of you who would be comfortable with books on CD, I suggest you buy extra players. I understand CDs are old technology and are going to be phased out within a few years. It will be a similar situation to the time cassette tapes were phased out by CD technology. There are also rumors that DVD may be out within the decade as well.
I have books that preceded cassette tapes and they are still here... and "playable."
2-18-2008 @ 7:39PM
BC said...
Buy used books off of eBay. Cheap, then relist them when finished and recoup your $$.
2-18-2008 @ 8:01PM
Ronnie L. Ponder said...
The person in this story could be you or someone you know. Cherck it out. Once you start, you can't put it down. It's called Satan's Empire and the Final Judgment. Find it online at any major book store or at publishamerica.com. Search Ronnie L. Ponder or Satan's Empire and the Final Judgment. You wont be sorry you have it.
Thanks
Ronnie L. Ponder
ponders1010@aol.com
2-18-2008 @ 9:50PM
Chris said...
Ordering books or music online is fine if you know exactly what you are looking for. But I love browsing at a bricks and mortar store, because there I am exposed to new material and new authors that I might not have discovered online. The random serendipty of bookstore browsing is delightful. You can also sit down and read a few pages from a book to see if it is something you really wish to purchase or borrow from the local library. Most of the new books I buy are for gifts, whereas I try to find my own reading material at the library. My library has a fantastic book sale every year where for $2 you can buy often-mint-condition books donated by library patrons.
2-19-2008 @ 7:06AM
Peggy said...
I read a lot of books. But, I prefer to shop at Barnes and Noble. Their discount card costs $25/year but I easily make that up and more between visits to the store and online shopping. I find that makes a difference when I'm shopping. I signed up for the Borders card but never got anything from it, just a fob for my keychain.
2-19-2008 @ 8:13AM
books said...
Actually even though you pay for the BN discount you save more and get the same amount of coupons for free if not more. Money.com rated the BN membership as a top five retail membership program, Borders wasn't even in the top 20. This is because you truly save more at BN. 10% off every purchase, 20% ANY hardcover book, and 40% off hardcover bestsellers. The discount works every day, and I get about 1-2 coupons a week on email ranging from 20-40% off, and about 2-4 a year for 50% off. It must be working because although BN didn't have a great year, they are still doing much better than Borders. BN is still opening stores while Borders announced last year that it is selling all of their overseas stores and by 2010 will close about 30% of their US stores....that should say something.
3-06-2008 @ 4:02PM
Christina said...
Scott, the issue with Border's declining customer survice stems from the fact that the home office keeps cutting so far into payroll that the stores are only allowed a bare bones crew on the schedule at any given time. The employees are so busy shelving books and doing RPL that they barely have time to help customers. When they do, they are so stressed, they come off as angry. Moreover, Borders has started letting go the "old school" employees who actually make a living wage and care about their jobs.
It's a shame, but that's the scoop from a store level.
3-09-2008 @ 11:29AM
Brenda said...
I've never been to a Border's but have always loved bookstores but I do tend to buy online now instead of going to the store because most of the time you can get free shipping on new books with only a $25.00 order. I just don't see how the idea Border's is implementing will help them increase business.