Photo: Barnes & Noble
Is it too late for a new store concept from Barnes & Noble?
It’s long been apparent that in order to become relevant again to today’s readers, Barnes & Noble must change something. Now, to get customers coming through the doors again, the last big box bookstore chain standing is trying to revive its appeal as a gathering place.
The chain is launching a 17,400 square-foot prototype store in the Chicago suburbs which is meant to have more of a café vibe than the existing Barnes & Noble stores, according to The Real Deal. The concept will have what the chain is calling “book theater” displays, meant to draw customers to check out new books. The new store will also feature oak bookshelves, a woodgrain floor and an expanded area for events and book signings. Barnes & Noble looks to be courting parents, as well, as the new concept features an experiential section for kids featuring plush chairs and Lego playsets.
Barnes & Noble is opening six of the concept stores nationwide, according to Patch.
The near 700 currently-operating mainline Barnes & Noble locations vary in size from 3,000-square-feet to 60,000-square-feet, with an average store size of around 26,000 square feet, according to Reuters. So, the new concept runs on the smaller side of what the bookstore chain tends to offer.
Despite the size and added amenities, it’s not clear if the new concept represents a radical enough change to turn the tide for Barnes & Noble. And by the time the chain assesses the format, there may be someone else making the decisions. Early in October, Barnes & Noble announced that it had named a board committee to entertain bids from those interested in purchasing the chain, according to CNBC, news that led to a stock rally.
Earlier this year, slipping sales at Barnes & Noble during the crucial 2017 holiday season — and despite increases in traffic to indie bookstores over the same period — led to some other big changes at the chain. In February, the company announced it was shifting its labor model and eliminating store staff positions.
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Barnes & Noble launches new concept in attempt to draw customers back to stores – The Real Deal
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Barnes & Noble names board committee to review possible sale, shares soar – CNBC
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Profile: Barnes & Noble Inc (BKS.N) – Reuters
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Barnes & Noble Opening New Store In Columbia – Patch
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Barnes & Noble, once an indie killer, is losing out to mom-and-pops – RetailWire
Discussion Questions
DISCUSSION QUESTIONS: Is focusing on in-store experience the fix for Barnes & Noble or is the problem deeper? What will it take to get customers to return to Barnes & Noble’s stores?
Poll
BrainTrust
Chris Petersen, PhD.
President, Integrated Marketing Solutions
Min-Jee Hwang
Director of Marketing, Wiser Solutions, Inc.
This sounds like a good idea but, frankly, it is something the chain should have done 10 years ago. It is never too late to try something new but to survive, this kind of thinking (plus a lot more initiatives) needs to be rolled out to the rest of the chain. I am not sure how the economics of doing that stack up; but they can’t be particularly favorable at this stage in the game.
Fixing the in-store experience can’t hurt, but I fear the challenges Barnes & Noble faces are much deeper and more systemic. The new prototype stores sound interesting, but largely incremental to what they’ve done in the past. It just doesn’t sound compelling enough to have a significant impact. And their challenging financial results stack the odds unfavorably. The bookselling business has so radically transformed over the past decade that I think it will take something radically different to break through — it’s not clear what that is and it won’t be easy.
If Amazon bought the locations and changed them into Amazon stores, anyone doubt that would be successful? Indigo in Canada is a successful bookstore, really there’s no reason Barnes & Noble can’t find a format that works.
A winning in-store experience is the goal for all retailers, not just Barnes & Noble. So the answer is out there, and there’s no harm in giving this strategy a shot. Even so, Barnes & Noble should focus on competing with Amazon on price and convenience, such as its BOPIS policy.
Barnes & Noble may say they’re focusing on the in-store experience but saying it and doing it are two different things. What is their in-store experience? Barnes & Noble the once-upon-a-time store we all used to enjoy has lost its edge. This has happened in part because of e-books and the internet but also because they haven’t kept up with the times. So now Barnes & Noble are opening a 17,000 square foot store that will feature a bigger café. Is that much different than the stores that already have cafes? Barnes & Noble need to get in touch with readers. The best place to start is with children, and the best way to do that is by partnering with their schools. A “You Need To Read” program for children supported by teachers and parents can help young people find the joy of reading and with the right program will get young people and their parents into the stores. Then as part of the program, Barnes & Noble can offer Saturday morning reading workshops, as well as feature children’s book authors to come in and speak with the children. Add the café and a few other incentives and Barnes & Noble would see an increase in traffic and business. It’s just a matter of being creative and trying out new ideas. Cutting staff isn’t the solution, finding a new audience and growing it is.
If you perfume the pig, it’s still a pig. Size of store, woodgrain floor or oak bookshelves doesn’t address the core issues. How is Barnes & Noble relevant for today’s customers – how does it add value? The larger question for Barnes & Noble is the customer experience beyond the store, and connecting with customers when and where they choose to engage.
There will always be a place for a physical bookstore in certain high-density markets that can support them. But I do not see this as a rollout and scalable concept.
When you look at how books are marketed today via sites like Bookbub, Goodreads, Google Book Search and of course, Amazon, the click to purchase is at that point in time. When the reader is finding out about the book and reading the reviews. So a reader can buy the book immediately and, in most cases, get the book in digital format for instant gratification.
There are always going to be browsers. But that market is declining, not growing. Barnes & Noble need to think way outside the box to come up with something disruptive other than a cafe concept. That is old thinking and has run its course.
Barnes & Noble needs to go through an innovation rebirth phase – similar to what Walmart undertook four or five years ago. This is definitely a good step. They’re thinking about how to make their business buzz. But it is NOT enough. Barnes & Noble needs to be thinking of continual innovation. Are they doing enough in popups? Are they taking Amazon’s lead by having top online sellers — ONLY stores (perfect for popups)? Are they pushing their omnichannel offering as strongly enough?
It takes a great experience to get customers back. The advantage they have over Amazon is the ability to browse, find and pick up items immediately.
While I applaud Barnes & Noble as they search for relevance, this concept seems five to 10 years behind the times. Finding a meaningful and valued in-store experience is a goal of every brick-and-mortar retailer. Barnes & Noble is no different. The cafe concept seems to be the go-to concept. Perhaps reviewing what Office Depot, Amazon Go, click and collect retailers and data-driven concepts are doing would lead to a more innovative, forward-thinking design.
For Barnes & Noble, it still doesn’t stand out and they have bigger problems right now. Barnes & Noble has been experimenting with format already. In-store experience is important, for instance one of their local stores in the Boston area (larger ones) already has the oak cabinetry and is co-located with an open doorway to an adjacent Starbucks. It has a giant section for music, a kids’ experiential section, a central high-tech section highlighting their Nook e-book reader and more. It’s a great experience for the book shopper, but store format by itself is not a silver bullet. The problem here is that this is not distinctive. Every physical bookseller has taken these same steps and the customer already expects it. Barnes & Noble’s problems right now are in leadership and a unified management team. With an exiting CEO a few months back and lots of internal clashes, the format is not going to matter.
The problem here is that this appears to be negative incrementalism, i.e., giving people more of what they don’t really want in hopes that they’ll start wanting it. Physical bookstores can have great futures — just look at Independent Book Store Day for an inkling of what the art of the possible can look like. But Barnes & Noble is tired, confused and lacks focus — and that’s a bad formula for attracting shoppers. Is it a cafe? Well, there are a lot better cafes around. Is it a film and music store? No, it lacks the panache of independent music stores. Is it a really great bookstore? Nope, too mass-market oriented and you can buy those titles anywhere — at a discount — from Costco to Amazon. Is it a toy store? Not really. And ditto for all the other things it’s trying to be from a stationary store, to a magazine shop, to a remainder book liquidator, etc. In short it doesn’t have clear positioning. You have to attract customers to a store before they can have an experience there. Barnes & Noble should study the Borders playbook — in reverse. The last gasp efforts to save Borders probably hastened its demise and B&N seems to be heading down the same course with candy, toys, coffee and whatever else they can stage in the middle of a declining bookstore. If I were running Barnes & Noble I’d take a tour of independent bookstores in hopes of learning what’s keeping them alive and, in a growing number of cases, flourishing. Sure, experience is a part of it — but it’s organic experience, not an engineered one.
I’m an optimist when it comes to Barnes & Noble, maybe because I spend a lot of time in our local store.
As a consumer, I appreciate having a place to read and play with my grandson, the events held annually at the store, its reading programs, local community involvement, and yes, the cafe.
Sometimes I think we are quick to judge brick-and-mortar retailers whose stores are not as sexy as the newest concept everyone is buzzing about. Indie book stores are making a comeback and I’m betting that B&N can, too. Yes it’s a big ship to turn, but the retailer is focused on change.
Barnes & Noble can do it if they focus on today’s customer desires. I have two favorite book stores: Town House Books, near our office, and The Tattered Cover in Denver. Why? They share the same experiences. When I walk into both, they have an earthy, comfortable feel with cabinets filled with books. The stores resemble an old library in a mansion.
They encourage you to sit in a soft chair and read and escape. At both stores, when I have a question about a book, there is always a person within feet that has already read it — always. Barnes & Noble needs to create an unduplicated emotional experience for the customer and consider very carefully their statement about shifting the labor model and eliminating store staff positions.
Creating a unique and engaging in-store experience is one of the only ways Barnes & Noble can compete with the online giant so of course, this is worth a try. Perhaps it’s time to look to successful independents to see how they remain relevant when they are up against big chains with greater purchase power and online as well.
The answer is yes, but 20 years ago. I know it sounds crazy, but customers know the difference between the real indie book stores and the ones that wished they’d thought of Amazon first.
Let’s hope B&N has finally found something that will extend their existence successfully. There has to be a place where a parent can take their child to teach them the beauty of reading and books. Nothing can beat the happiness of holding and reading a book. This can’t be lost because of technology. B&N’s current footprint model is too large with too many choices. Reducing the footprint and changing the look might be the start of the upswing for B&N.
I believe in B&N and I’m hoping that a new model will emerge that resonates in the market. Speaking for my daughter, “I don’t know what I would do without Barnes & Noble.” She is among a faithful group of book junkies that rely on the touch and feel only available in a brick-and-mortar setting. Working to reinvent this experience is indeed overdue, but I do not believe the opportunity has escaped them.
With the resurgence of indie/local bookstores, one would think that with the right approach (and execution) Barnes & Noble could reinvent themselves.
Bookstore success is all in the details. This approach must be accompanied by curation of an interesting array of books, magazines, and gifts. Executed well, this approach can be a winner.
However, given Barnes & Noble’s history, I consider that a big “if”. Somehow they’ve always stocked product in ways that feel stale and corporate — lacking the excitement of potential discovery that should attend every bookstore visit.
Cracking the curation code is their only route to success against Amazon and independents.
Other retailers need to pay attention. B&N is merely the most severe example of merchandising controls taking all the interest out of their assortment. Every other retailer fights the same battle with varying degrees of success.