There will always be a space for a well run operation in the physical bookstore space; emphasis on "well run." Amazon acknowledges as much with the opening of their brick and mortar locations. The keys are to provide a localized, personal shopping experience for your guests while properly managing your product assortment; balancing depth in current bestsellers and breadth in back list titles and remaining competitive from a price perspective. Another major factor that B&N is addressing with this strategy is effective real estate management -- with 20% of the system up for renewal annually and a smaller footprint, B&N can be more nimble in exiting underperforming locations and relocating to more desirable real estate. The ability to stay on the customer's primary route is an invaluable tool in the customer acquisition and retention arsenal.