Wed, May 23, 2012, 5:20 PM EDT - U.S. Markets closed

Discover Yahoo! With Your Friends

Explore news, videos, and much more based on what your friends are reading and watching. Publish your own activity and retain full control.

To get started, first

YOUR FRIENDS' ACTIVITY

    Another Retailer Bites the Dust: Borders Doomed by Amazon Deal, Howard Davidowitz Says

    The final days for Borders Group Inc. are just ahead. The country's second-largest bookstore abandoned last-ditch attempts to save the business this week after few bidders stepped up.

    The nearly 400 Borders stores still open could start liquidating and selling off assets as soon as Friday. The plan is for all to be shutdown for good by September, leaving nearly 10,000 employees without jobs.

    There were many missteps that caused this business to fail from holding too much debt, opening too many stores as well as jumping into the e-reader business to late. But above all, there was one "disastrous move" that put the final nail in Borders' coffin, says retail expert Howard Davidowitz of Davidowitz & Associates.

    "I think the biggest thing Borders did wrong is when they turned over their online business to Amazon," Davidowitz tells The Daily Ticker's Aaron Task and Breakout's Jeff Macke in the accompanying interview. "That move finished them off because they gave away the future."

    Speaking of future: Where does this leave the future of the U.S. bookstore and Barnes & Noble?

    With a $1 billion market cap, Barnes & Noble (BKS) faces an uphill battle against Amazon's (AMZN) massive $100 billion valuation. But Davidowitz is not willing to put the last big-box book chain down for the count just yet.

    "I don't believe in inevitable things because I have seen a lot of great changes done in the retail business," he says, pointing to his favorite retailer Wal-Mart (WMT). Not only did Sam Walton change his business from a small variety store model to a discount retail chain, he grew his single Arkansas store into America's largest retailer and employer.

    Davidowitz is not giving up on the U.S. bookstore either.

    "The retail business is a business of change," but there is still a room for the bookstore in the hearts and lives of many Americans who use them as a place for meetings, gatherings and to just hang out with friends. Davidowitz says the bookstore is going nowhere soon, but we can expect to see a lot fewer of them.

    As for the 10 million square feet of empty retail space, Davidowitz predicts the big multi-level stores will likely lay vacant for some time, which will put pressure on small developers and community banks in those areas. Most of the smaller Borders' stores will be gobbled up by retailers that are currently thriving, like Bed Bath & Beyond (BBBY), he says.

    Yahoo! Poll

    Will Congress get anything accomplished before the November elections?

    Loading...
    Poll Choice Options
    • Yes
    • No
     

    2,182 comments

    • Danny  •  10 months ago
      Say what you will, but I firmly believe that their prices did them in. When a paperback is over ten bucks, it's time to shop elsewhere! Even when a book is on sale, it's still overpriced!
      • jenny 10 months ago
        no. Borders was reasonable. Barnes and noble is ludacris with prices. The authors need money and think how much ink and paper they are using.. it costs money to make a book.
      • halfcat 10 months ago
        Borders wasn't reasonable at all and their rewards program sucked. I started ignoring their 40% off coupons because the price of the books I wanted were STILL cheaper elsewhere even after the coupon! B&N isn't much better.
      • Mrs. T 10 months ago
        I agree, Danny. I used to own a specialty bookstore and I sold books to many former Border's and Barnes and Noble customers who complained of high prices.
    • leeannk  •  10 months ago
      Being an independent Bookstore employee... I understand the place of both books in your hand and an ereader.. I find that if you are a hardback reader. You will save money. But not if you read paperbacks... the nice thing about the books in hand. You can take them to a local used bookstore and turn them in for credit toward other used books... there by saving more..
      I also worry about the "no guarantee" that if some thing happens to the server that says you purchased an ebook, you might have no recourse. Remember that when you shop local, your dollar impacts the local economy 3 times more than with a dollar spent at a big box store.
      And many local bookstores are now offering ebooks on their websites in partnership with Google ebooks. That way you are still supporting your local bookstore.
      • PEARL 10 months ago
        you are so right leeannk, and you miss the smell of a book, the feel of the paper the sound of the page turning.. oh yea.. A BOOK!!!!!! YESSSSSSSS..........
      • chefz2 10 months ago
        If a big super-store can have millions of people walk into their store and buy over-priced books, coffee and tabloids, while paying their employees minimum wage but still can't make ends meet, then it's their own fault if they can't make it work.

        Local businesses know their clientele, are ready and willing to do what they can to make an honest business that statisfies the customer, then why not? The more business you give them, the more they are able to expand and continue giving you great service. The owner knows my name, lets me know when my favorite authors have come in without my asking and can make recommendations based on my likes. See that at Borders? Not unless they are wearing a badge saying 'Just in!'
      • jnm 10 months ago
        Leeank, you confuse me. How am I saving money buying hardbacks? They cost at least twice as much as paperbacks and take up more room, to boot! I can't fit a hardback in my purse. The last two times I carried a hardback with me, they were stolen, even though I left them in the care of the store manager in each store so noone would accuse me of stealing them from the store!
    • PEARL  •  10 months ago
      There is nothing better than going to the bookstore, looking through my favorite author, flipping the pages between the covers, reading a few... then buying it, taking it home, sitting down with a drink, and entering into the perfect escape. For those of you that don't read, you have no idea what you are missing. It's a sad day, when a book store closes it's doors. I'm very happy, that there are people that write books. Thank you for sharing your minds, fantasy's and lives. Ahhh the smell of a book store. I'm sorry to see one close.
      • Derek 10 months ago
        There is something better. You hear of a book, order it on line withing 30 seconds and hey presto it arrives without your driving or being disappointed at the store when they don't have it
      • cutiepie787 10 months ago
        Hahaha I agree. Seeing a book store close just breaks my heart. Book stores are like my second home. I love books so much I'm kind off considered antisocial. LOL
        By the way i'm 13 so yeah i'm sometimes very lonely, unless I have a book with me. 8D
      • PEARL 10 months ago
        It's the smell of the book store. ALL the books in one place. I can spend my whole day off in the book store. I'm sorry your so lazy. I don't consider shopping for books online as better than walking in the store. Since your in the mood to criticize, smart azz,why don't you just get a crappy nook.. and download it immediatly. I have about a thousand books in my home library, and wouldn't trade it for an electronic book... ever.
    • C B  •  10 months ago
      I'm a fan of Barnes and Noble. I also prefer a book to a nook. I like the smell of paper and ink. I hope we can still keep some old school luxuries for the future, if not we will all be slaves to technology which can break....
      • David 10 months ago
        And , if you drop it , just pick it up dust it off and continue on .
      • 49er fan 10 months ago
        You need to watch the Doctor Who episode "Silence in the Library" and "Forest of the Dead." People will read real bound books forever.
      • Grimm 10 months ago
        ha becasue Doctor Who is a great way to tell the future.....
    • Annie M  •  10 months ago
      Libraries are wonderful. Don't cost anything and carry more books than a "Super Store".
      • proud teacher 10 months ago
        Yes, libraries are more than wonderful. The are a blessing from our government, local and national. So the next time there is a millage vote for your local library get out and vote for the increase . Libraries are free to the citizen but not free to run.
      • Surrounded by Fools 10 months ago
        Libraries are dinosaurs.

        They'll be the first to go under harsher government spending cuts.

        They no longer serve a purpose when everyone can access the same info online.
      • Chance Wayne 10 months ago
        Too bad they're shutting many neighborhood libraries down or slashing hours of operation in favor of tax breaks to the wealthy and unnecessary wars.
    • SK  •  10 months ago
      It would be the biggest shame if book stores disappeared. There is nothing better than curling up with a good book and a cup of coffee at your favorite book store.
    • Sarah  •  10 months ago
      My store started liquidating yesterday. Nearly 6 years I've worked there and soon I'll be out of a job. Not only that, but I've had the honor to work with some wonderful people and help great customers who share a passion for reading books. Our store is a madhouse, even though the discount is mostly 10%. They would've saved more if they shopped with us before we went out of business.

      We would often be told by customers that they could get it cheaper on Amazon. Of course something coming from a warehouse could be cheaper. If they choose Amazon over brick-and-mortar stores, they may not have a choice soon. I intend to support B&N when my store is gone.
    • catmandenny  •  10 months ago
      As much as I love my computer, I would give it up in a second to recapture those old record stores and book stores as well as all of the jobs that have gone away since the computer arrived.
    • A Yahoo! User  •  10 months ago
      Long term strategys are not apart of the American business mind set..Quick buc's are..Borders in their desire to excel and dominate, lost the war and their investors money..
    • Snidely Whiplash  •  10 months ago
      I still like holding a paper book. I will not take part in the electronic book age.
    • Cherie  •  10 months ago
      I despise e-readers, they are cool and convenient, I understand that, I've even tried out my aunt's Nook, but I still despise them. Borders was the only book store in my area so now that is gone, I will have no place to look for books. Yes I will go to the library, but borrowing and owning are two different things and I really don't like ordering books off the internet. I will miss flipping through pages and smiling when I find just the right book. Nothing can replace the feel and smell of a book. I spend all my time in front of a screen as it is, why do I want one more to look at? Screw E-readers, nostalgia beats convenience any day.
    • Xana  •  10 months ago
      I don't understand e-book or nook. I would rather prefer a hard copy of a book for my collection.
    • PatriciaS  •  10 months ago
      I hope book stores dont go out of business some families with 6 or more children cant afford to buy ebooks KEEP THE BOOk STORES OPEN PLEASE !
    • weebeebofus  •  10 months ago
      Collapse from holding "to much debt"? SOUND FAMILIAR????
    • Stephanierenae  •  10 months ago
      i don't agree with nooks, e-books. if you wanna buy those, it's your own thing, go for it. me, my wrists and hands aren't so delicate that i can't hold the light weight of a book. i'm a
      voracious reader, always have been, always will be. i think people are too hooked onto technology and there's enough screens to look at as it is. we've got cell phones, tvs, computers, laptops, those stupid tablets, ipods. now you can read books on tablets.. a book will always be my first pick over any nook, kindle, e-whatever.
    • Dave H  •  10 months ago
      Soon the only place to shop will be Wal Mart. One sad state of affairs....
    • Texan  •  10 months ago
      The way it looks , the rest of the Country may not br far behind.
    • Left is Wrong  •  10 months ago
      One reason for book stores declining is that our NEW generation can't read any more then incomplete sentences with less than six words - ending on with a three-letter acronym. They haven't been taught (apparently) proper grammar, good spelling or the use of punctuation. The "dumbing down of America" is here and thriving!
    • Tiki  •  10 months ago
      I wish the decline of the the big bookstore chains would herald the return of the little individual bookstores - especially the ones that sell used books. Some people still like browsing among the old books - it's not better or worse than reading the latest bestseller on Kindle, but it's just a different experience to sift through old paperbacks and find a treasure.
    • ddcatwoman25  •  10 months ago
      I would miss books if we didn't have them anymore. Don't get me wrong I love technology, but there's something about sitting curled up with a book, turning the pages etc that I enjoy along with the whole reading experience.
      I also love going into a book store, I like the way they smell (geek) paper, ink and glue...I'd miss all the physical aspects of a good book. Plus...what would you do when the power goes out. I can still read a book by candle or flashlight :)

    FOLLOW THE DAILY TICKER

    The Daily Ticker covers the most important business stories of the day -- the economy, investing, corporate leadership and politics. The Daily Ticker picks up where Tech Ticker left off and is hosted by Aaron Task, Henry Blodget and Daniel Gross. Often serious, sometimes irreverent and always interesting, The Daily Ticker gives viewers a unique take on the business world's most crucial stories.

    Subscribe and RSS

    [X]

    How to subscribe

    Roll over each section to subscribe using Add to My Yahoo! or RSS Feed feeds.

    Yahoo! News offers dozens of RSS feeds you can read in My Yahoo! or using third-party RSS news reader software. Click here to find out more about RSS and how you can use it with Yahoo! News.
     
    Recent Quotes
    Symbol Price Change % Chg 
    Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
    You need to enable your browser cookies to view your most recent quotes.
     
    Sign-in to view quotes in your portfolios.