Barnes & Noble Will Be Shutting Down One Third Of Their Stores In The Next Decade
Barnes & Noble hit around $1.2 billion in revenues during the holiday period, but they will be working on shutting down many of their brick-and-mortar stores over the next decade. The company will be shutting down around 20 stores a year over the next decade according to The Wall Street Journal. This is around one third of their retail stores, which will bring the total down to 450-500 stores according to B&N executive Mitchell Klipper. Barnes & Noble has around 689 retail stores in operation total right now. Klipper says that less than 3% of Barnes & Noble stores are losing money, but they believe that more of their stores will be losing money in the coming years.
Barnes & Noble shut an average of around 15 stores per year in the past decade, but until 2009 they were also opening 30 or more per year. A Barnes & Noble spokesperson said this in a statement to The Verge:
Barnes & Noble has not adjusted its store closing plan whatsoever. The Wall Street Journal article implies that our rate of store closures has changed. We have historically closed approximately 15 stores per year for the past 10 years. Of that number some of the stores are unprofitable while others are relocations to better properties. The numbers reported today by the Wall Street Journal are consistent with analysts’ expectations. It should be noted that in 2012, Barnes & Noble opened two new prototype stores and in 2013 plans to test several other prototypes, as well. Barnes & Noble has great real estate in prime locations and the Company’s management is fully committed to the retail concept for the long term.