The Wall Street Journal reports that Borders Group hopes to get out of bankruptcy protection by the end of summer, and that it is planning to close between 25 and 75 stores in addition to the 200 it already announced as being shuttered.
A key goal for the company - being in a position to market against the end-of-year holiday selling season, which would be critical in getting the company back on its feet.
Right now, the company is wrestling with what to do with its 25,000 square foot superstores, when less and less of that space is needed to sell actual books, which more and more are being sold online. (Games and consumer electronics are among the options being considered for the extra space.) And, Borders has to figure out its online strategy, which has paled compared to that of Amazon.
A key goal for the company - being in a position to market against the end-of-year holiday selling season, which would be critical in getting the company back on its feet.
Right now, the company is wrestling with what to do with its 25,000 square foot superstores, when less and less of that space is needed to sell actual books, which more and more are being sold online. (Games and consumer electronics are among the options being considered for the extra space.) And, Borders has to figure out its online strategy, which has paled compared to that of Amazon.
- KC's View:
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It is instructive to retailers in all venues to read the words of Borders President Mike Edwards, who says that while he has no plans to add any executive staffers, the one exception might be “to hire a senior online executive to work with Borders.com.”
Y’think?
The fact is that Borders made a fateful decision in 2001 when it decided to outsource its online business to Amazon, only taking it back in 2008. During those seven years, when the online business was exploding, Borders was a non-player, seemingly in total denial about where the market was going and how fundamental consumer behavior was changing.
That’s a mistake that retailers cannot afford to make, no matter what they are selling.
