BENTONVILLE, Ark. and BIRMINGHAM, Ala., July 1
/PRNewswire/ -- Wal-Mart Stores, Inc. (NYSE: WMT), announced
today that it has formed a strategic alliance with
Books-A-Million (Nasdaq: BAMM), the third largest book retail
chain in the U.S., to provide Wal-Mart's online
customers with access to a vastly expanded title base of
popular titles, including the latest best sellers.
Under terms of the agreement, Books-A-Million will be
the exclusive provider of books and related products
to Wal-Mart's online customers. The company will
also provide Internet order fulfillment services from
its Florence, Ala., distribution center.
"Wal-Mart's online customers will have access to hundreds of
thousands of book titles at our every day low prices," said
Glenn Habern, Wal-Mart's Senior Vice-President of New
Business Development. "Books-A-Million has been in the
book business over 80 years, and by combining their
literary expertise with our focus on customer service, we
are confident that we can make an immediate impact on
the quality of the online book industry."
Books-A-Million is the latest company to form a strategic
alliance with Wal-Mart. Earlier this month, a contract
with Fingerhut was announced regarding Internet order
fulfillment for Wal-Mart. The two announcements are a part of
Wal-Mart's overall strategy to improve its online operations
and to focus more on customer service.
Commenting on the agreement, Clyde B. Anderson, President
and Chief Executive Officer of Books-A-Million said
"the commitment of the world's largest retailer to
e-commerce makes this alliance a very exciting opportunity.
We believe that Wal-Mart will quickly become a
leader in the online book selling arena, and we look
forward to working with them to provide their customers
with the best the web has to offer."
Stores, Inc. (WMT) operates more than 2,400 stores and
450 Sam's Clubs in the United States.
Internationally, the company operates more than 725 units.
Wal-Mart employs more than 815,000 associates in the
United States and 135,000 internationally. In 1998, the
company raised and donated more than $127 million for
Books-A-Million is one of
the nation's leading book retailers and presently
operates 177 stores in 17 states. The company operates
four distinct store formats, including large
superstores operating under the names Books-A-Million and
Books and Co., traditional bookstores and combination
book and greeting card stores, both operating under
the name Bookland, and Joe Muggs Newstands. The
company's wholesale division includes American Wholesale
Book Company and Book$mart. The common stock of
Books-A-Million, Inc. is traded in the Nasdaq National Market
under the symbol BAMM.
SOURCE Wal-Mart Stores,
CO: Wal-Mart Stores, Inc.;
YHOO closed within 3/4 of intra-day high, up 5
1/2 off of low of the day. BAMM closed down 3 1/2
from high and up 1/2 of low.
P.S. Our summer
home in Camden Maine is spotless, as is our winter
home in Princeville, Kaui. Thank you very much
In the short term Amazon may well be over priced,
BUT You should take note of the following points; 1.
Amazon is a "start-up" and
as such would have large
intial advertising to increase public awarness. 2. As
such when public awarness has reached a sufficient
then they would no longer need such a large
advertising bill. (Very low overheads, and as such they
should be making a lot more than
35c in the dollar
of gross profit 3. Amazon unlike the bricks and
mortar retailer has a wider international reach. It is
circumnavigate the franchisee arrangements
for the books in other countries (eg UK, France,
Germany, etc) 4. Once Amazon has the
volumes in place
it would be able to increase the margins via
discounts it recieves from it's the publishers. 5. If the
much lower book
prices are maintained, the bricks
& mortar (B&M) brigade would also have to lower the
prices or risk loosing all their customers.
(contrary to popular oppinion you do not need to owen a pc
to have internet access, cafes and library would do
very nicely thank you
very much!) 6. If the B&M's
lowered their prices then due to their higher fixed costs
they would be haemoraging losses, if they don't
then they risk losing their customers (nasty catch 22)
That you will find is probably the primary reason that
Barnes & Noble is setting
up an internet. 7. If
Barnes & Noble is competitive in wining market share
from Amazon in the US (As the number one it's very
difficult not to). It would end up both growing the
business and also canabalsie clients from it's existing
(Wouldn't Amazon have a
greater chance of poaching them once they've felt
comfortable using an intenet retailer?) 8. Amzon has a
stronger brand awarness & loyalty than Barnes &
Noble internationally and that may well become a large
percentage of Amazon's
future sales! Also they may well
be a able to gain higher margins on overseas sales
(Shiping costs or some such excuse) As such in the
medium term it may be wiser to be short Barnes & Noble
and long Amazon !!!
My god--doesn't this just say it all? The same
"dream" of improving margins, the same failed hope for
My understanding is that he was known more of an
unsparing tactician than a strategist at B&D. And that he
rose from the ranks as from sales (so not sure he
about the M.B.A.)
(An aside: Photograph online
looks Scicillian, btw.)
Apparently he is
well-known and well-liked on the Street as one of the main
catalysts for B&D's resurgance. Perhaps in one capacity he
is meant to attract a certain type of retail sector
investor or to attract financing from the investment
community in a way that others might be less able
He will also be arriving with much knowledge and
many contacts in markets abroad having headed a
Worldwide products unit as a well as an understanding of
the business cultures of many of the major markets
which Amazon wishes to enter.
As you have
mentioned before, the expansion into overseas markets is a
key for Amazon's continued growth and a tenant of the
Internet business model beyond just eCommerce (not only
Dell or Cisco, but Yahoo, AOL, the other portals and
their expansion into global markets.)
As far as
overhead, base salaries themselves are quite low as you
ought to know for most. There is other compensation
Its Walmart who's put this fattened swine amzn in
its sights, not necessarily BAMM. You see, its
Walmart, using BAMM's inventory/distribution, that has
greatly expanded its own selection. A buyer won't
necessarily realize he's utilizing BAMM's middleman services
- he would go into WMT's site, and pick his book.
Walmart is now a much stronger book retail competitor,
(BAMM always has been) - thats the big news, don't you
get it? And they DESTROY their
While this deal is good for BAMM, they'll still
maintain their own site.. and btw, even though their stock
price is down today, BAMM still sells more books than
AMZN, and makes a profit doing so.
sold at 125!!!
wall street jones
Blue Who? By the 21st when AMZN reports EPS we
will hear even more and much larger numbers
concerning: Uniques, New Customers,
especially from the
BAMM down 2 1/4, AMZN up 1 5/8, DOT
Index up 21(Major technical breakout from reverse head
& shoulders pattern. Next week will be fun!
Not really sure of what to think about Galli.
What do you think??? Don't know much about Black &
Decker, but here is my intuition:
Here's a career
Black & Decker man -- 19 years. And he is going to be
able to move into an entirely different industry, a
different part of the supply chain, a younger corporate set
-- with a SIGNIFICANTLy different speed necessary
for decision making -- and do well? I'm not so sure.
He seems to be the blue suit, big established
Black & Decker was easy -- a great
brand that represented products/tools that were well
built, designed, and developed. A quality product. The
goal is to get your product stocked by retailers, not
to BE the retailer. Retailers had to stock B&D
because it is a great product. You have to do it. That is
different than retail, auctions, etc. And since retail is
AMZN.BOMB's game, I'm not sure how Galli fits, do
One other thing: he's just more overhead in a
business model that already has too much overhead.
Retailers can't support dozens of executives -- that's why
retail is always on the lower end of the business food
chain (like HR for functions). For the P&L to work you
can't have a lot of high-paid executives & MBA's -- but
that is what AMZN.BOMB is doing. Why did they need
Galli? What holes is he going to plug tomorrow? Why
couldn't they go without?
(As an aside, do you
think Galli means that AMZN.BOMB will go industrial /
hardware / tools?)
Because it's about revenues pure
and simple at this stage.
TV stations and
baseball teams have a lot of eye-balls, too. Sorry not
interested in that metric.
Any other bright