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Barnes & Noble reported their sales from the 2017 holiday quarter, and the news is not good.
B&N today reported holiday sales for the nine-week holiday period ending December 30, 2017. Total sales for the holiday period were $953 million, declining 6.4% as compared to the prior year. Comparable store sales also declined 6.4% for the holiday period, while online sales declined 4.5%.
Entering December, the Company was encouraged by the comparable store sales improvements throughout the second quarter and into November. However, sales trends softened in December, primarily due to lower traffic.
The Company's book business declined 4.5%, outperforming the overall comparable store sales performance. Declines in the gift, music and DVD categories accounted for nearly half of the comparable store sales decrease. The Company said it remains focused on executing its strategic turnaround plan, which includes an aggressive expense management program.
The keywords are "aggressive expense management program," which translates to "lowering" the cost of employees, and closing and downsizing stores.
Previously: Barnes & Noble Pivots to Books
(Score: 3, Interesting) by nobu_the_bard on Tuesday January 09 2018, @08:47PM
The people in upper management for very large operations don't see a store floor and the perpetual battles for retail share from the front lines. They see spreadsheets with numbers. They have to take pains to keep their perspective in check, and not forget what it's like out there on the sales floor, or they forget and the drift.
Most of the newer items B&N is stocking, are HIGH profit margins (those niche toys and statues, cellphone accessories, etc). They don't need to sell a ton to make money on them. They look great on spreadsheets.
The problem is they're low demand. The margins are high because they're from markets with low volumes of sales. You might get lucky and inspire a wider market but that'll be a temporary thing before the fad passes or the prices have to come down to compete. It's not a great way to dig the company out, its just something that maybe can keep your head above water.