Barnes and Noble need to gear up more for Nook sales. Recently Barnes & Noble Inc., has faced a thrash in business particularly for its Nook division. Current retailer reports reflect, the company is facing a considerable loss in Nook sales. The business return on Nook devices, accessories and digital content were $125 million, down 60.5% year over year for the nine weeks ended Dec. 28. This was more than expected based on the chain’s reported decline in e-commerce and bookstore sales which jointly amounted to $1.1 billion in the same period, down by 6.6% compared to the year before. At this juncture unless it can take a plan a new strategy to revamp the nook sales it might become difficult for them to sustain the nook segment for long.
CEO Mr. Michael P. Huseby analyzed this declination in sales revenue of the Nook segment by coming to a conclusion that last year the company introduced two new tablet products, while no new tablets were introduced in the current year which might have badly affected the business return. He also emphasized that the company evolved a policy like this as it wanted to sell existing high-quality devices instead of launching new items.
Barnes & Noble is no doubt making a huge loss as its digital content sales were $36.5 million in the nine weeks over the holidays, a decline of 27.3% year over year indicating to fewer device sales and lower average selling prices. The record reveals it sold $88.7 million in Nook tablets, e-readers and accessories over the period, a decline of 66.7% from the same period in 2012.
While, Barnes & Noble is facing such a steep market situation especially for its Nook sales many other organizations like Apple Inc and Amazon has reportedly done huge sales during the holidays in 2013. This definitely aggravated the sore spot for Barnes & Noble this year.
B & N has announced and extended father’s Day discounts to an unlimited period of time. It has also incorporated ‘Best Prices Ever’ on NOOK® HD and NOOK® HD+ also by saying they are thrilled this will deliver a great value to make reading more affordable. They also claimed it will help customers to get induced in summer reading. The price of NOOK HD starts at only $129 and NOOK HD+ starts at just $149 with a savings up to $120 on NOOK HD tablets, with over 700,000 android apps and games on Google play™, millions of songs, movies, TV shows and more.
As there was a gradual decrease in Nook sales since November in February, the retailer planned to spinout the Nook division into a new subsidiary which some how did not click. As a next step a new strategy has been announced in June describing about change in the manufacturing process of its color tablets by outsourcing.