In a recent interview with the New York Times, Barnes and Noble CEO, Stephen Riggio, discusses the strength of the book industry, e-books, and the company’s online strategy (without mentioned used book sales). Read NYT article.
Barnes and Noble CFO, Joseph Lombardi, recently spoke regarding online sales for the company. During the speech he reported that sales were just below the industry’s projected growth of 10% per year. The fact that B&N is falling short of PROJECTED growth numbers is unbelievable. First of all, the statement is misleading because while 10% was projected, the industry undoubtedly grew at a faster pace. Second, for a company like B&N not to be above the rate for the entire industry is a business failure given its name recognition and respect among consumers.
I’ve posted twice before encouraging B&N to change their strategy toward used books as a method for increasing overall online sales (Big Surprise: BN Holiday Sales Stagnate and An Alibris Without Amazon). Studies repeatedly show how Amazon’s used book strategy has not cannibalized, but actually boosted new book sales. It is time for B&N to consider increasing the visibility of its new book offerings (including the price!).
Barnes and Noble online sales demonstrated almost no growth in 2005, despite a 25% increase in holiday ecommerce sales in general. This is hardly surprising. One of the main reasons for this is the growing popularity of Amazon. One of the major reasons for this is their strong used marketplace listings service. This allows customers to find “deals” on the site, meaning they are more likely to return to Amazon for all of their book purchases. Barnes and Noble offers used books through Alibris sellers, but does not highlight these copies and prints no pricing information unless you click their “Used copies available…” link. Seems like a no-brainer to me…
