Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Technology News

 

Amazon Invading Barnes & Noble turf On Campus?

Jan 28 2014, 11:05pm CST | by

1 Updates
Amazon Invading Barnes & Noble turf On Campus?
 
 

YouTube Videos Comments

Full Story

Amazon Invading Barnes & Noble turf On Campus?

While Barnes & Noble may be struggling right now as a company, it’s mostly the Nook digital media division that’s dragging down earnings — both B&N’s chain of retail stores and college bookstores are showing relatively healthy revenues and profits, despite the intense competition from Amazon and other booksellers.

Now, Amazon, perhaps not content to best Barnes & Noble on the ebook battlefield, is going after the retailer in one of its strongholds: the college campus. Amazon has formed a partnership with University of California, Davis to create an online storefront geared specifically toward the university’s students.

Barnes & Noble does the same thing in the physical world, operating nearly 700 college bookstores across the country, including at Ivy League schools like Harvard and Yale, state schools like Indiana University, and community and technical college systems. Through the first half of the company’s fiscal 2014, its college division had sales of $963 million. In fiscal 2013, it had nearly $1.8 billion in sales.

For the Amazon deal, UC Davis Stores, the company that operates the university’s retail network, will get about 2% of revenues from purchases through the new online storefront. A scholarship has also been established that will use store revenues.

“The collaboration is a win-win for the university and its students,” UC Davis Stores director Jason Lorgan said in a statement. “The site complements the existing UC Davis retail operations and provides additional items that we’re unable to provide. We expect it will generate significant revenue for the university and do not believe it will harm our in-store sales.”

Whether deals like this harm UC Davis Stores sales is an open question and, now, an ongoing experiment. Less immediately clear is if such a deal will put a dent in one of Barnes & Noble’s healthiest businesses. In 2013, the college bookstore segment showed modest 1.1% growth while both the company’s other divisions shrank. The retail segment, which is roughly three times the size of the college business, shrank by about 6% and the beleaguered Nook digital business shrank by nearly 17% in 2013. Losses at the retail stores seem to have stemmed somewhat in 2014 while the bleeding at Nook has intensified.

Requests for comment from Amazon on its college strategy were not responded to before press time.

Barnes & Noble as a whole is struggling on many fronts. A disastrous holiday quarter exposed massive losses at Nook. The company is being sued by shareholders and a class action complaint was recently filed. And the appointment of Michael Huseby as the new CEO has signaled to investors, employees and observers that the break up and sale of the company may be imminent.

Observers have predicted that Nook will be sold or shuttered and at least one investing industry observer cheered that notion. One industry analyst speculated that Wal-Mart could buy Barnes & Noble in an effort to bolster its book sales competition with Amazon.

Source: Forbes

 

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Rihanna and Drake truly madly deeply in Love with each other
Rihanna and Drake truly madly deeply in Love with each other
The popster, Rihanna and rap artist, Drake are reportedly truly, madly and deeply in love with each other. This comes two years after their infamous split.
 
 
Kim Kardashian reveals a Few Factoids from her Life
Kim Kardashian reveals a Few Factoids from her Life
The gorgeous chunk of feminine beauty, Kim Kardashian has revealed a few factoids from her semi-charmed life.
 
 
Hershey’s New Logo looks like a Steaming Pile of Poo
Hershey’s New Logo looks like a Steaming Pile of Poo
Hershey’s new logo is out now. But the only problem with it is it looks eerily like an emoji symbol of a steaming pile of poo.
 
 
Angelina Jolie and Brad Pitt exchange Wedding Vows
Angelina Jolie and Brad Pitt exchange Wedding Vows
The actress in Tomb Raider, Angelina Jolie, and Brad Pitt exchanged wedding vows recently. They make a lovely couple and both are from the cream of the crop in Hollywood.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.