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  • Jim_was_here Jim_was_here Jul 2, 1999 11:28 AM Flag

    I bet AMZN try to buy BAMM soon.

    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
    charitable organizations.

    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.;
    Books-A-Million, Inc.

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    • 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


    • it AMAZON? Because it is too big for you to conceptualize.
      I suggest you clean your underware. You do wear it outside like Madonna does?

    • That AMZN failed to build...

    • 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
      able to
      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
      B&M establishments
      (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.

      you could'a
      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
      auction site.

      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
      corporation type.

      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?)

    • Why not?

      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

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