You are viewing this article in the archives. For the latest breaking news and updates in Ann Arbor and the surrounding area, see
Posted on Tue, Aug 30, 2011 : 10:16 a.m.

Borders liquidation expected to boost Barnes & Noble by up to $200 million

By Nathan Bomey

Barnes & Noble, the nation's largest bookstore chain, reported today that it's projecting a sales boost of between $150 million and $200 million as a result of Borders' dissolution.


Barnes & Noble operates a superstore on Washtenaw Avenue on Ann Arbor's east side.

File photo |

Analysts are watching Barnes & Noble closely to see whether the company is able to capitalize on the liquidation of Ann Arbor-based Borders Group Inc., which is expected to be complete within a month.

The New York-based retailer said today that it is projecting a sales increase at stores open at least a year to increase 2 percent to 3 percent during its 2012 fiscal year, which started May 1.

The company has acknowledged a temporary surge in the competitive landscape because consumers are flocking to Borders to find discounts while the chain closes its remaining 399 stores.

But in the long run, Barnes & Noble is expected to benefit from Borders' demise. B&N said it expects a revenue increase of $150 million to $200 million in its current fiscal year — but it acknowledged a risk that the increase could be lower.

Barnes & Noble had 36.0 percent of the bookstore market share in March, while Borders still had 10.7 percent, according to a report by research firm IBISWorld.

Barnes & Noble finds itself in a situation similar to that of Best Buy, which benefited from competitor Circuit City's liquidation in 2009 but didn't get as big of a boost as some experts projected.

The retailer is hoping that its own electronic books reader, a device called the Nook, will help the company survive dynamic changes in the book industry.

"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," Barnes & Noble CEO William Lynch said in a statement.

Contact's Nathan Bomey at (734) 623-2587 or You can also follow him on Twitter or subscribe to's newsletters.



Tue, Aug 30, 2011 : 11:34 p.m.

E-readers notwithstanding, there will always be a place in people's hearts for a good bookstore. And NY retailer Barnes and Noble: Buy the big Border's store on Liberty Street and fill the void.

Yeah buddy

Tue, Aug 30, 2011 : 4:20 p.m.

Yeah they got Borders out of the way, but that just means that they will now have to go head-to-head with Amazon. Good luck.

Tom Joad

Tue, Aug 30, 2011 : 3:18 p.m.

Books are dead. I can fit 10,000 electronic books on my laptop.