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In my previous post I mentioned some factors that have led Borders Books to the brink of bankruptcy. \u00a0The Borders executives have been in NY and talking with publishers for weeks. \u00a0I am not privy to any of those conversations but the general buzz in the industry is that this one is much more serious than previous years.<\/p>\n
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Who knows? \u00a0Borders death has been reported for the past five years. \u00a0They always seem to come out with enough financial backing to survive another year. \u00a0I hope that happens. \u00a0But if it does, Borders will need to change to survive.<\/p>\n
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Some suggestions:<\/p>\n
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The book retailing world has changed dramatically and all bookstores must adapt to survive.<\/p>\n
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1) \u00a0Selection is not what it once was — Borders prided themselves on having a great selection. \u00a0At one time that was an advantage. But physical bookstores can not compete with the selection on the Internet. Borders needs to cut back on selection and focus more on promotion. \u00a0I am not saying cut out all the backlist, but it does need to be weeded out. \u00a0What is the inventory turn? \u00a0How much money is tied up in wallpaper? I was in a Borders last week and they had at least one copy of every Sue Grafton mystery (A is for Alibi…). \u00a0She is on U. \u00a0Do they really need all of these titles?<\/p>\n
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2) \u00a0Get into the eBook game in a real way — Sure they are way behind in this space. \u00a0But this is the growth area in bookselling. \u00a0All they need is 2-3% and it will translate into millions of dollars. \u00a0Their current play is confusing. \u00a0They own 20% of Kobo and have contracted with them to run the eBook store on Borders.com. \u00a0That is fine, but I don’t see anything that makes me want to shop at Borders.com. \u00a0They need to specialize. \u00a0Also, I hope they are not making the same mistake as they did with Amazon and give away their best customers.<\/p>\n
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3) \u00a0Specialize in Children’s items — I like the entries into Children’s books. \u00a0The Build-A-Bear and American Girl relationships makes sense. \u00a0Borders can create the “go-to” place to bring children. \u00a0Parents are always looking for places to take their kids and if Borders can get front of mind for them, they will get repeat visits. \u00a0Sell books, videos, games etc. \u00a0Many criticized Borders for the Build-A-Bear relationship, but I think it brilliant. \u00a0Borders MUST break out of the “bookstore business as usual” to survive. \u00a0Building up Children’s is a key driver. \u00a0Make it a destination.<\/p>\n
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4) \u00a0Eliminate 400 stores — This may be impossible given long term contracts and agreements. \u00a0Over-expansion has hurt many retailers. But supplying all these stores with new merchandise doesn’t make sense. \u00a0I wonder if the 80\/20 rule can be applied? 80% of the revenue coming from 20% of the stores. \u00a0If they can not get out of the additional leases, maybe Borders strips them down and sells remainders? There are warehouses of dead stock that could be cleaned out.<\/p>\n
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These are just a few thoughts. \u00a0I realize the Borders situation is much more dire than this but somethings to ponder.<\/p>\n
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If Borders survives, they will need to do things differently. \u00a0There is no more business as usual because the world has changed and it will never be the same — ever again.<\/p>\n","protected":false},"excerpt":{"rendered":"