Barnes & Noble Announces Plans for Extensive Integration of Stores and Web Site
Business Wire - October 26, 2000 07:00
NEW YORK--(BUSINESS WIRE)--Oct. 26, 2000--
Internet Service Counters Debut in Barnes & Noble Stores
Membership Loyalty Program Promotes Cross-Channel Shopping
Barnes & Noble Stores to Accept Returns of Online Purchases
Q3 Bookstore Comparable Sales at Industry-Leading Levels
Barnes & Noble.com Sees Gains in Market Share and Sales Growth
Barnes & Noble, Inc. (NYSE: BKS) and Barnes & Noble.com (Nasdaq: BNBN) (www.bn.com) announced today plans for three major integration initiatives that will provide new levels of service and convenience to the tens of millions of customers who shop in Barnes & Noble stores and at Barnes & Noble.com.
These initiatives, announced at an analysts' meeting today, represent the acceleration of the companies' strategy of building an extensive clicks-and-mortar network, linking 551 retail stores and the popular Web site through advanced proprietary technology. The success of this strategy is reflected in the continued improvement in financial performance at both companies: Barnes & Noble, Inc., said its third quarter comparable bookstores sales remain industry-leading and are expected to be a minimum of 5 percent; Its bookstores earnings are expected to meet analysts estimates. Barnes & Noble will report its third quarter results on Nov. 16; Barnes & Noble.com, which will report its third quarter results on October 30, continues to show strong sales growth and market share gains in the online book business.
The initiatives are:
- Internet Service Counters powered by Barnes & Noble.com will
be installed in all Barnes & Noble superstores. The new
counters will enable customers to order any book or other
product through the Barnes & Noble.com Web site, www.bn.com,
from any Barnes & Noble store. The service will offer
customers the option of paying by cash, check or credit card.
Customers may also choose to pick up their orders at the
stores, or have orders delivered to their homes, offices or
other addresses of choice.
- A membership loyalty program, called Readers' Advantage, will
offer additional discounts and benefits in Barnes & Noble
stores and at Barnes & Noble.com. For a $25 annual membership
fee, participating customers will enjoy 10 percent additional
discounts at Barnes & Noble stores and 5 percent additional
discounts at Barnes & Noble.com. Customer sign-up benefits
include a one-year subscription to BOOK(R) magazine and a free
canvas tote bag. The program benefits also include invitations
to members-only events.
- Barnes & Noble.com customers will enjoy the convenience of
being able to return books and music CDs purchased at Barnes &
Noble.com to any Barnes & Noble store. Customers who take
advantage of the returns program will receive merchandise
credits at Barnes & Noble stores.
"We know that multi-channel customers spend more, and we see our new Internet Service Counters as keys to increasing sales in both the retail and online channels," said Steve Riggio, vice chairman of Barnes & Noble, Inc. and Barnes & Noble.com. "The counters, as well as the other initiatives announced today, leverage the real strength of Barnes & Noble - tens of millions of affluent, educated consumers who are the most desirable retail demographic group in America. We believe this is the most extensive and comprehensive deployment of technology in the clicks-and-mortar age."
The membership program offers customers added benefits for their loyalty to Barnes & Noble. "Through Readers' Advantage, book lovers get discounts and other special incentives that enrich the Barnes & Noble shopping experience even more," said Alan Kahn, chief operating officer of Barnes & Noble, Inc.
As part of the Readers' Advantage program, Barnes & Noble has entered into a marketing agreement with BOOK magazine, a consumer magazine devoted to avid readers. "With subscriptions for everyone who joins Readers' Advantage, and through featured displays in our stores and subscription promotions on Barnes & Noble.com, BOOK magazine will be introduced to millions of readers," Mr. Kahn said.
The returns program is designed to make the entire shopping experience more seamless for online customers. "The ability to return books to our stores is the No. 1 request from our Internet customers, and we are happy to oblige by making this very convenient service available at 551 retail locations," Mr. Riggio said.
About Barnes & Noble, Inc.
Barnes & Noble, Inc. (NYSE: BKS) operates 551 Barnes & Noble and 379 B. Dalton bookstores, and, with its acquisition of Babbage's Etc. and Funco, Inc., is the nation's largest operator of video game and entertainment software stores. Barnes & Noble stores stock an authoritative selection of book titles and provide access to Barnes & Noble.com's more than one million titles. They offer books from more than 50,000 publisher imprints with an emphasis on small, independent publishers and university presses. Barnes & Noble is one of the world's largest booksellers on the World Wide Web (http://www.bn.com), and the exclusive bookseller on America Online (Keyword: bn). Barnes & Noble also publishes books under its own imprint for exclusive sale through its retail stores and Web site.
General financial information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's investor relations Web site: shareholder.com.
About Barnes & Noble.com
Barnes & Noble.com is the first online bookseller to offer a vast in-stock inventory with an editorially rich bookselling environment. The company's online catalogue includes more than three million titles, including virtually every book in print as well as more than 12 million listings from its nationwide network of out-of-print, rare and used book dealers. Barnes & Noble.com's excellence in e-commerce extends to the music business, where it was voted by Forbes.com as the No. 1 music site on the Web. Cited by Forbes.com for being "best-of-class for anyone who wants to learn about the music they're buying" it features a classical music superstore and is distinguished by an emphasis on jazz, world music and Broadway show tunes. As in its book site, Barnes & Noble.com's music site has extensive editorial features from both in-house editors and licensed content.
Barnes & Noble.com is an industry leader in the burgeoning market for electronic books. The site features more than 4,000 eBook titles that can be viewed in a variety of formats. The company dramatically expanded its offering of eBooks with the opening of its eBookStore in August 2000, featuring the new Microsoft Reader platform, which will enable users to download eBooks to any PC, laptop or Pocket PC and open the market for eBooks to more than 100 million users. The company believes that in the not too distant future it will offer digital versions of virtually every book in print.
SAFE HARBOR
This release may contain forward-looking statements regarding expectations of the companies. These statements are based on the beliefs of the management of the companies as well as assumptions made by and information currently available to the management of the companies. Such statements reflect the current views of the companies with respect to future events, the outcome of which is subject to certain risks, including among others general economic and market conditions, changes in product demand, the growth rate of Internet usage and e-commerce, possible disruptions in the companies' computer or telephone systems, possible increases in shipping rates or interruptions in shipping service, effects of competition, the level and volatility of interest rates, changes in tax and other governmental rules and regulations applicable to the companies and other factors, risks and uncertainties more specifically set forth in the companies' public filings with the Securities and Exchange Commission. The forward-looking statements herein speak only as of the date of this release. The companies expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this release to reflect any changes in the companies' expectations or any changes in events, conditions, or circumstances on which any such statement is based. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein.
CONTACT: Barnes & Noble.com
Gus Carlson, 212/414-6014
Vice President, Corporate Communications
Shelley Young, 212/414-6016
Director, Investor Relations
or
Barnes & Noble, Inc.
Mary Ellen Keating , 212/633-3323
Senior Vice President, Corporate Communications
Maria Florez, 212/633-4009
Director, Investor Relations |
