Category Archives: Barnes and Noble

Barnes & Noble Beats Predictions And Narrow Downs Its Loss Margin

Daniel Posted On - December 22, 2014

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Recent record shows though the famous bookstore Barnes & Noble has incurred a loss it could at least narrow down the margin a little which was beyond expectation. The whole incident of managing to save the company from a greater loss has given a positive thrust towards the company’s share in the market.

Michael Huseby, the CEO of Barnes & Noble, said in a recent statement that they have somehow continued to improve their performance in financial parameter, and at the same time concentrated on executing effective strategic initiatives.  This included taking steps towards the proposed separation of the Barnes & Noble Retail and the Nook Media businesses.

Huseby further mentioned that the retail section’s core comparable sale is however getting some definite advantages from improving physical book industry trends, supported by additional merchandising initiatives including store promotions.

While discussing this point he also provided the previous figures of company earning indicating 0.4% decline in core bookstore sales. But this obviously presents a track record excluding Nook product sales. When the Nook’s results are also taken into consideration, Barnes & Noble’s performance record touched a lower limit of 5.1% in the quarter.

But there is a silver line in this negative picture. Although Nook segment sales showcased a declining curve from 54.3% to $70 million, its EBITDA loss got a little positive swing by $50 million which made it a $5 million for the quarter.

No doubt the company highlighted their internal strategy of initiating the progress towards separating Nook Media from Barnes & Noble Retail, but at the same time it also played the game cautiously which keeps the things a bit hazy regarding the exact time of such executions.

In fact they are still continuing to showcase a situation where they are still carrying out some discussions about restructuring agreements.  As a result it is not being possible to assess when the Nook spin-off will take place. It is also likely that it may become as late as first quarter of 2015.

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Samsung and Barnes & Noble is Creating Co-Branded Tablets

Steve Burns Posted On - August 14, 2014

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As announced in June, Barnes & Noble is now ready to team up with Samsung to develop a new co-branded Galaxy Tab 4 Nook.

Barnes & Noble is also going to arrange a press conference on August 20th 2014 which is highlighting a publicity campaign as “join us as the best of both worlds come together.” This event is going to take place at Barnes & Noble’s Union Square store in New York City.

Interestingly they did not mention about the Tab 4 nook or did not even declare about any surprise being awaited in this meet. But Barnes & Noble had already brought one thing in forefront that the new tablet would come in early August. But most probably it is going to deferred a little bit which is likely to slipped to later in the month. It is also a known factor that the Galaxy Tab 4 Nook will be a 7-inch device and will essentially be Samsung’s Galaxy Tab 4 with Barnes & Noble’s Android-based Nook software on it.

The Galaxy Tab 4 features a 7-inch display with 1280-by-800 resolution, a 3 megapixel front-facing camera and a 1.3MP rear shooter. It also has 8GB of onboard storage, microSD slot for another 32GB, and a 1.2GHZ quad-core processor.

Record shows Samsung originally sold the Galaxy Tab 4 for $200, but right now you can pick it up on Amazon and at Best Buy for $20 less.

Although a lot of information about the Galaxy Tab 4 is already in the air, there is no clear cut idea about its price. Still there are curious questions and confusions regarding this price factor. Will Barnes & Noble sell the tablet at a lower price point than the original Galaxy Tab 4 or will it be the same cost? If the pricing remains the same it can be a bit more challenging for a Nook tablet with Barnes & Noble custom software instead of a standard KitKat-flavored Galaxy Tab 4.

There is confusion about the exact time also as it is not yet mentioned when the Galaxy Tab 4 Nook will go on sale. But a close speculation says, it is expected to start immediately after the press announcement on August 20.

However, there is enough enthusiasm about the launch as it is the first Samsung-Barnes & Noble tablet resulting from a partnership the pair announced in June after making lot of changes in their decisions. Barnes & Noble has flip-flopped in recent months over its device building plans. At first in June 2013, the company announced it would start working with third-party manufacturers to create Nook devices. But it quickly changed its resolution by saying they would make their own device in August. Then again in February, Barnes & Noble expressed their wish to work with “several world-class hardware partners” to produce a new Nook device. And finally they announced about this Samsung partnership in June.

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Barnes and Noble need to gear up more for Nook sales

Steve Burns Posted On - March 11, 2014

Largest book retailer in the US
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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.

Detail study

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.

Competitors gain

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.

New Initiatives

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.

Way outs

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.

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Barnes and Noble Rethinking the Tablet Strategy to Observe Higher Sales

Steve Burns Posted On - August 2, 2013

Barnes and Noble Rethinking the Tablet Strategy to Observe Higher Sales
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It is very crucial for the marketers of the different brands to know and feel the ebbs and flow of a respective niche. Customers have become more sophisticated and achieving higher sales is not about communicating to the prospective customers in meaningful details and descriptions about the products and a wide range of services. The e-sellers need to create value for the customers which can be done by retooling the present strategies.

The sales volume of the e-reader and tablets, Barnes and Noble observed a dip of 34% in the fiscal fourth quarter. It has made the renowned company to come up with a change in strategy and it is thinking of a business partnership. The Nook HD tablets will be offered to the loyalist as well as the new customers where the mobile devices will have the logo of Barnes & Noble logo as well as the name of the company who the esteemed company will be partnering with.

It’s not a Complete Deviation from the Present Business

The CEO of Barnes & Noble, William Lynch, has stated some important facts that can appease the loyalists. The top-notch company is making the best of plans not to completely deviate from the device business, but work towards building its ebook and digital content business with a trusted partner. Lynch is not ready to spell out the name of the company that Barnes & Noble is going to get tied up to. The Nook has been the highlighting factor that made this company a known name and the popularity of the Nooks has made other brands like Microsoft and Pearson to make huge investments. The rumor mills are churning out that Microsoft is all set to buy the Nook brand. It is not only in the planning stage, but the tongues are wagging that Microsoft has made an investment in the Nook business holding a share of 17.6%.

The Smart Business Move

Barnes and Noble is keeping a low profile about its news business step, but it has been successful in creating a buzz. It is definitely going to be a big affair. The cost of the nook HD tablet needs millions of investment and may be in order to have a higher financial backup – thoughts of partnership hit the top-notch Nooks company. Since Amazon invested its marketing strategy, money and effort on the Kindle, Barnes and Noble had to face the music, or tougher competition from Amazon, which made the sales number of Nooks to fall down. So the new strategic plan will hopefully help in upping the sales graph of the Nooks, as the company is also planning to open some more stores.

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