pegret

Mon, Jan 3, 2011 : 3:29 p.m.

I have to agree with rudejude. While I feel very badly for the employees (and have for some time), I can't say that I care much about either Borders or B&N. Although it has sometimes been hard to resist the "rewards" & deals, especially with a modest income, I would rather wait and spend my money at Nicola's, (Or West Side Books, or Aunt Agatha's). Nicola's in particular, has done an awful lot for the local community and schools.

Ron Granger

Mon, Jan 3, 2011 : 10:59 a.m.

I remember walking into the downtown a2 Border's three years ago, looking for a particular technology book. I couldn't find it, so I checked the kiosk. It told me it *might* be in stock, and gave me a vague location in the store. The inventory system could not even verify inventory. I asked an employee, and was told "if we have it, it will be over there somewhere".. Finding the book was very difficult. I found it. It was priced at full retail, $42.95. The book was available on Amazon for around $22. I was willing to pay significantly more than $22, but no way would I pay full retail. Other times, I tried to buy key technology titles (the O'Reilly DNS book is one specific and great example). But the flagship store, in a huge university town, did not have them. They couldn't really tell me when the title might be in. There is just no excuse for that. Clearly, going to Borders was a waste of my time. Border's website was previously powered by Amazon. It was amusing how Borders kept saying they were going to launch their own website. For years, they failed (just like Wal-mart) A lot of "techies" were saying how easy it is to do e-commerce, but anyone who ever said that had never run a large e-commerce site. When they finally switched it over, it had huge usability problems (for years). I couldn't even browse titles, let alone order. Great companies reward employees who take risks, and make stuff happen. But in many entrenched companies, those employees are punished if they threaten the established fiefdoms. In those places, it is about playing the "game" and collecting the paycheck. I use Amazon Prime.. 2nd day shipping is free, and overnight on any item is $3.99. Why would I ever bother with Borders?

bedrog

Sun, Jan 2, 2011 : 7:41 p.m.

per speechless' predictions: the demise of SHAMAN'S DRUM,an excellent boutique bookstore in a city of presumed high consumption/ high critical ability/ discerning readers, bodes ill for the survival of any bookstore that aspires to topical and ideological balance in its inventory. This site's threads alone indicate the pernicious echochamber effect the internet has had on our collective reading habits: i.e just read the stuff that agrees with what you already "know". Certainly the well known recent woes of print newpapers is another "canary in the coalmine"on all this....as is the increasing expense of books and their shoddy binding ( especially in paperbacks) which makes them seem like an ephemeral indulgence ( which a good book shouldnt be!!) Depressing in the extreme.

Speechless

Sat, Jan 1, 2011 : 10:20 p.m.

"... The bookseller's stock dropped 22 percent on Friday... to 90 cents per share on fears that the company is in the midst of a liquidity crisis...." When the first lifeboats were lowered during the Titanic's final hours, most of the passengers offered seats proceeded to refuse them. The listing of the wounded ship amounted to only a slight tilt, and in the nighttime chill most felt more secure up on deck rather than bobbing on the cold ocean waves far below. A short while later, the list suddenly grew more pronounced, and demand for reserving a lifeboat seat rose dramatically. Those who had been "invested" in the Titanic's ability to remain afloat now wished to bail out fast. ------------ Obviously, this year may well mark the end for Borders. Also, the company may well be remembered as a textbook example of what can go horribly wrong following conversion to a stockholder-based ownership model. Its big stockholders didn't much care what happened to the business years down the road. They didn't need to, since profit came from cashing out stock at a price peak or selling short. Top management, meanwhile, could always reach for the nearest golden parachute and leap out for a soft, posh landing. Barnes and Noble has clearly handled their financing and strategic planning far better than the revolving leadership at Borders during the last 15+ years. Still, I don't believe they will survive in the long run, either. In comparison to Borders, B&N is a better constructed and better managed version of the Titanic, one that will take noticeably longer to sink and disappear. There is a future for bookstores, but one more in the form of a boutique business, certainly not a big box store. To survive, they will become effective at offering more of what the internet does not do well: bring locals together in person for readings, group discussions and other store-sponsored activities.

Macabre Sunset

Sat, Jan 1, 2011 : 6:38 p.m.

Amazon was not started to be bought up, though. They knew what they had. And they knew that if an established bookseller bought them up, it would interfere with their mission. In 1997, they were raiding the top programming houses in the Seattle area, getting long-established programmers to create that web site. They spent a huge amount of money - they were willing to pay top dollar to get who they wanted. It paid off. They had better technology on the web right from the beginning.

Ken

Sat, Jan 1, 2011 : 5:55 p.m.

I thought years ago, while Amazon was still in its infancy but it was already becoming clear that online merchandising was the wave of the future, that Borders should have bought them up. I just don't "get" why it's always bricks & mortar vs. online retailers, except pure stubbornness; with an in-place distribution network, inventory available in most major cities for those that don't want to wait on snail mail (which also helps by getting warm bodies in the store), retailers that embrace modern technology instead of fighting it have been very successful. Blockbuster is another great example of a company that waited until it was too late, then tried to play a game of catch-up with Netflix. I think another Borders screw up was in allowing bean counters to take over from the book lovers; part of the appeal was the wide selection, something unmatched at B&N, but now if they dont sell 1000 of a title per month they stop selling it- cant count the times Ive been forced to buy something at Amazon because its out of print so Borders online wont get it for me. Also wonder why they didnt do more to enhance the bookstore experience- concerts by local glee clubs, skits by local high school groups, provide free meeting space for book clubs, things like that that cost very little but get people in the store and have them leaving with a smile on their face.

Angela

Sat, Jan 1, 2011 : 5:21 p.m.

@bedrog: Funny you should mention brain implants: http://www.wired.com/science/discoveries/news/2009/03/neuroengineering1 Back on topic, as I said in the previous article, I will truly miss Borders if/when they close. There is nothing like walking into a store, being able to look through the book, purchasing said book, and then reading it that same day. I do not foresee myself jumping on the bandwagon of choosing to read a book on a screen as opposed to having it physically in my hand; though I have read some banned books online simply because they are not available to purchase.

Tom Joad

Sat, Jan 1, 2011 : 2:31 p.m.

Borders on Liberty is a sad hovel of its former glory...I remember when the cafe used to be full and books were flying off the shelf. No more...bye bye, Borders

airwarrior

Sat, Jan 1, 2011 : 12:33 p.m.

I think Barnes and Noble will make it through...but Borders sadly won't. In my opinion, Borders made 3 great mistakes...this from the perspective of someone who spends on average used to spend about $100 in books monthly. 1) Late and still slow to a crawl to this day to jump in the ebook reader business. B&N has been and continues to be aggressive at their stores. Hits you right in the face, the moment you come in. No need to elaborate about Amazon 2) Borders Rewards was always an inferior product to B&Ns preferred reader. Why?? Simple: Customers wanted their discounts and savings on the spot....not days later having to drag themselves to the store again. Customers also wanted their discounts at the Cafe, which is, in my opinion, the most lucrative & important area of these large bookstore operations. I recall mentioning this particular to a Borders Store manager in San Antonio some years back...and she told me that B&Ns program was a mistake and would cause their stock to plummet. I wonder what she thinks today..if she's still around. Sadly, I declined an offer to join the new (and finally B&N-like Borders Rewards program), simply because I don't think Borders will be around much longer. 3) I'm serious here....Borders got rid of their Chai Recipe in an effort to revamp and "improve" their cafes. HUGE mistake. It was the sole reason my wife went to Borders. It was the best and most exquisite Chai latte in the world. If Borders would've listened closer to their customers' needs and wants...I strongly believe it would've been in a stronger position this day. I feel bad for the employees in my hometown store, particularly young college kids who may soon be out of a job they desperately need to help them stay afloat with rising cost of living and few job opportunities......and then, there may still be a miracle in the end.

Jon Saalberg

Sat, Jan 1, 2011 : 11:59 a.m.

My story of why Borders and other large bookstore chains (OK, really, Barnes & Noble) will fade away - I needed five collectible reference guides for my eBay business, with cover prices ranging from $29.95 to $39.99. I went to half.com and bought all five books for approximately $25, including shipping, in near new to new condition. The chain bookstores cannot compete, when they expect me to pay $125+ for books I can buy $25.

Ron Granger

Sat, Jan 1, 2011 : 10:44 a.m.

@Dell: I disagree that this has anything to do with electronic books. Borders' serious problems began many years ago. Ultimately, management is at fault. This is a lumbering company, slow to change course, stuck in the past. The sort of place where "not invented here" pervades. The sort of place where, for over a decade, executives rewarded themselves for a job well done, even as they pretended the place wasn't being run into the ground. Look at the top talent Amazon recruits, at all levels. It is key to their success. Given Borders' history of layoffs and silly decisions, how could they possibly hope to attract and retain the best? Borders, a once great bookstore, was doomed by dinosaur management.

bedrog

Sat, Jan 1, 2011 : 9:54 a.m.

There's a karmic/'hoist by ones own petard'/ 'the mill of history grinds on' pattern here: Big chains like Borders/ Barnes and Noble etc. squeeze out small mom and pop book stores. In turn,they are replaced by online operations like amazon, kindle. It's here that the usual conspiracy theorists on this site can jump in to talk about the 'next big thing' being brain implants whereby the government can transmit propaganda to one and all.

Dell Deaton

Sat, Jan 1, 2011 : 9:36 a.m.

There's another, broader trend here that's at play as well. Options and demands for reading material in eBook format have been making serious noise for the last couple of years. In 2010, things really took off; predictions are that 2011 will see it reach "critical mass." Factor against this the immediacy and labor disadvantages of getting physical, printed texts into folks' hands, and you can see how the nature of the industry itself is against "a Borders," especially if it fails to keep up. You can't walk into a Barnes & Noble without passing a large, staffed eReader merchandiser. Kindle remains sold out at Staples and Target, in addition to being listed as an Amazon.com best seller. Further research indicates that the iPad, rather than emerging as a "Kindle killer" has, conversely, served to raise interest and grow the category. The Kindle App makes eBooks available cross-platform, including on iPhones and PCs. (I'm hoping to see AnnArbor.com available through the Kindle soon, hint, hint.) Borders has seemed oblivious to this, in-store POP efforts lackluster. It's cliche to note that "the printed book will always be around," because, as any "Star Trek" fan knows, Kirk and Picard already showed us that future, right? But when a serious competitor like Amazon re-defines the marketplace with an approach such as the electronic book, it's foolish not to have an answer, if not a better answer. What is gonna happen then is what has happened here: People look to Amazon for "the latest," in this case, via Kindle, then stay for broader purchases, including traditional book bindings.

jcj

Sat, Jan 1, 2011 : 9:05 a.m.

As with many of our problems in society it starts with greed and selfishness!

RudeJude

Sat, Jan 1, 2011 : 8:57 a.m.

When what was once just my local bookstore grows up into a national chain and begins to swindle people by selling music CDs for $18.99 that are $11.99 or less anywhere else in the world, it's hard for me not to think, "good riddance." I hate to see a company go under for the sake of the people it employs, but companies that price-gouge consumers should go the way of the Dodo. I can't say I'll miss you, Border's.

phg70

Sat, Jan 1, 2011 : 1:13 a.m.

There's an interesting blog, "I Work at Borders" where current and former employees discuss going's-on at the company: http://community.livejournal.com/iworkatborders I've never been an employee but am a frequent customer. Based on what I've been reading on that blog and in the media, I'm going to spend all my gift certificates pretty quick.

AlphaAlpha

Sat, Jan 1, 2011 : 12:25 a.m.

Sandy - In general, the western world is now experiencing the aftermath of a credit mania-the same kind you may have learned about in school, and were told could not ever happen (again), because 'the government won't let it'. During the credit mania (which is widely as-yet unacknowledged as a mania), too many people borrowed too much money, invested too much, spent too much, etc. etc., just as in most manias. Asset prices rose for so long that many people came to 'know' it would continue. At some point, prices reversed, and suddenly many people and many companies found themselves with reduced incomes, reduced asset prices, and a need to reduce spending and investment: a recession. Look around: lower real estate prices, lower stock prices, lower wage lower prices for nearly every asset ex-commodities (their time is close). This is known as deflation (something else you were likely taught 'the government wold not allow to happen'), and deflation is associated with depressions, as our great recession will likely be renamed. In another 75 years or so, it'll happen all over again, just like in the 1930s and many times before that. It's hard and soft wired into humans. It has little to do with politics-nearly all societies experience manias. Understand though, we will get through this, to good times again. It'll just take a while longer. As to Borders specifically, hopefully someone familiar with BGP will write. Good luck.

Sandy

Fri, Dec 31, 2010 : 10:50 p.m.

Why is this all happening? What when wrong?

AlphaAlpha

Fri, Dec 31, 2010 : 10:47 p.m.

Looks like they peaked at $39.07 in mid '98 (during the irrational exuberance). What a shame. If anyone here follows Borders, what are your thoughts as to what the original sway from grace was? Some have said inventory control was inadequate; new mgmt cut wages & bennies; eventual reduction in selection; etc., but why did the 13 year decline begin? Thanks. PS - for those who follow equities & such, many signs suggest that an intermediate top is at hand; time for caution. As always, DYODD.

TripleVSix

Fri, Dec 31, 2010 : 10:35 p.m.

If anybody got Borders gift cards for Christmas, you'd better use them soon.

stunhsif

Fri, Dec 31, 2010 : 9:34 p.m.

Nuff said already, let them die in peace!

Macabre Sunset

Fri, Dec 31, 2010 : 8:22 p.m.

What this means is the NYSE will de-list Borders shortly, further accelerating its financial demise. You don't miss payments unless you're ready to declare bankruptcy.