Barnes & Noble Expects Borders Shut-Down To Boost Them Up To $200 Million
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Barnes & Noble, Inc. (NYSE:BKS) reported that they are expecting a sales boost of $150-$200 million due to the dissolution of Borders book stores. Barnes & Noble expects a sales increase at stores that are open at least a year to increase 2-3% during their 2012 fiscal year, which starts May 1. Barnes & Noble acknowledged the competition they saw from Borders to find discounts due to the closing of 399 stores.
However Barnes & Noble will benefit from Borders’ permanent shut-down. Barnes & Noble expects a revenue increase of $150 to $200 million in their current fiscal year. Barnes & Noble had a 36% market share as of March while Borders had a 10.7% market share. “The company is encouraged by the progress achieved against our strategy and believes in our plan to continue to appropriately invest in the massive digital opportunity,” stated Barnes & Noble CEO William Lynch.