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Joel Warady's RetailWire Blog
January 27, 2010
Borders Looking for a New CEO, Again
FROM RETAILWIRE:
When Ron Marshall replaced George Jones and joined Borders as its CEO last January, some were not keen on the change of management. Change, however, is in store for Borders again. Mr. Marshall has chosen to leave the chain to join another retailer. What do you expect to happen at the chain with the latest change in leadership?
MY COMMENTARY:
As we have witnessed with the demise of Linens n' Things, the consumer did not need two chains selling the same products, and Bed, Bath & Beyond emerged as the victor. As we have witnessed with the demise of Circuit City, the consumer did not need two chains selling the same products, and Best Buy emerged as the victor. As we are witnessing with the demise of Borders.... Well, you get the idea. There is no need for both Borders and Barnes & Noble, and B&N will emerge as the victor. I will be surprised to see Borders survive as a stand-alone company, and in fact expect them to declare bankruptcy within the next 30 days. However, due to the fact that Pershing Square has a considerable investment in both Borders and Target, I would not be surprised to see the Borders name live on within a Target store, and see Target expand their book business. With respect to Ron Marshall, he provided little marketing expertise or leadership to Borders, and he is leaving the company in worse shape than when he arrived, with holiday sales down almost 15%. Internally, employee morale is at its lowest. Borders is not in good shape, and Marshall did little if anything to improve the retailer's situation. |
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