Glenn, have you any Bks??
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New York, March 19 (Bloomberg) -- Barnes & Noble Inc., the biggest U.S. bookseller, doesn't have to ''beat'' online rival Amazon.com Inc. to win on the Internet, said Chairman and Chief Executive Leonard Riggio.
Amazon is the clear leader, and it got to the Internet first, Riggio said. However, Barnes & Noble didn't get on the Internet because it saw Amazon's success and wanted to chase it. In fact, it was halfway through developing its online unit, barnesandnoble.com, when Amazon's business started, he said.
''Amazon's brilliant, and they're doing well because they deserve to,'' Riggio said during an appearance at the 92nd Street YM-YWHA in New York for the ''Captains of Industry'' series. ''We can sell a lot of books without selling to the same people Amazon does.''
New York-based Barnes & Noble today said it plans to sell part of its online unit to the public for as much as $200 million.
Barnes & Noble shares rose 5 1/2, or 19 percent, to 34 3/8, their biggest gain since November.
The bookseller will spend much of the proceeds on advertising to draw new customers to its Web site, which trails Amazon in revenue.
Barnes & Noble's partner on the Internet, German media company Bertelsmann AG, bought a 50 percent stake in barnesandnoble.com for $200 million last year.
Internet Sales
It's not yet clear how much the Internet will deter future growth of stores in the U.S., though there's probably room for at least 1,000 more Barnes & Noble superstores, Riggio said. The Internet may be taking some sales away from stores, but it's also adding more sales overall because of its convenience, he said.
''We look at the Internet as the most exciting thing to happen in our lifetime, and sometimes I believe in the history of human affairs,'' he said.
Barnes & Noble operates 521 Barnes & Noble stores and 484 B. Dalton mall-based stores.
One way in which barnesandnoble.com could gain an advantage over Amazon is if Barnes & Noble completes its proposed purchase of book distributor Ingram Book Co.
The Federal Trade Commission is in the process of reviewing that plan, which would add more distribution centers to Barnes & Noble's network and boost its ability to ship books overnight.
Questions
Some analysts have questioned whether the purchase would give Barnes & Noble an unfair competitive advantage, noting that Amazon and No. 2 U.S. bookseller Borders Group Inc. are now two of Ingram's largest customers.
Riggio noted that the reason Ingram approached his company about a merger was because Borders and Amazon had plans to open more distribution centers so they didn't have to buy from Ingram.
He also addressed past criticism of his superstores, which some have blamed for the demise of a number of independent bookstores.
''This business isn't about bookstores; it's about books,'' he said. ''We've been the loudspeaker to hundreds of thousands of authors whose books can't fit on the shelves of small stores in America.''
Less than 3 percent of Barnes & Noble's sales come from best sellers, though critics have accused the chain in the past of focusing only on the most popular titles, he said.
11:05:55 03/19/1999
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