Barnes & Noble Opens New Stores

A New Chapter

Three years ago, Barnes & Noble was bought by the private equity firm Elliott Management and taken private for $683 million. Now, in a rare moment where the sequel beats the original, the bookstore has announced that it’s opening more than 30 new stores in 2023. The announcement follows the company’s first year of net growth in over a decade.

In a moment of poetic irony, a handful of the new stores will open in locations formerly owned by Amazon (AMZN) Books stores. The tech giant, arguably responsible for the recently-diminished success of physical bookstores, closed all of its own brick-and-mortar locations last year.

Since B&N is now a private company, it is not required to report financial information to the public. However, a spokesperson for the company stated that the company is currently experiencing tremendous growth. This expansion is a testament to the bookstore’s success.

B&N’s New Strategy

Barnes & Noble’s strategy for success was twofold: cut expenses and improve their selection.

In particular, Elliott Management took advantage of the COVID-19 pandemic and used the quarantines as a time to refurbish stores, reorganize layouts, and reassess stock. At the same time, it cut layers of corporate management and excess expenses including office space and extraneous products.

On top of that, the new owners allowed local store managers more control over which books each store sells and promotes. By localizing these decisions, Barnes & Noble has helped tailor its selection to specific subsets of readers and cut back on low-demand books.

Here to Stay?

Bookstores are in a similar situation to movie theaters. On paper, both industries should be suffering. Streaming and online bookstores are typically much more convenient and offer a wider selection than theaters or physical booksellers.

However, it’s becoming clear that there are intangible factors at play in both industries. For bookstores, there’s something about the experience of browsing the aisles, flipping through the options, and walking out with a new book in hand that keeps customers coming back.

Luckily for those customers, it looks like bookstores aren’t going anywhere. Unless, of course, you live near a new Barnes & Noble location, in which case, they’re coming even closer.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23010901