Why did Borders go Bunkrupt?
Why did Borders go bankrupt?
First, I will miss not having a great bookstore to amble around.
Here are four discussion points as to why Borders failed.
Borders should have better diversified into the two main selling platforms: store location and Internet (bricks and clicks)
Their clicks/Internet division was clunky and not intuitive. It was not maintained. It should have been interactive so customers would become engaged with the Borders web site. This is bad Internet customer service!
Visits to a website (or store) prompt more purchasing.
Also, they could have greatly reduced the price of shipping a book by having the purchaser go to the store to pick it up for FREE (and then probably have purchased something else at the store! See how Wal-Mart does this!)
They needed to get their book prices down. We all KNEW that the book we wanted would be sold on-line for 1/2 or less the price! Negotiate strongly with the publishers as they need to sell in a different business paradigm now too! This also meant bringing down their overhead! See item three and four to help with this!
Add a trade-in and re-sell section to help with the bottom line. (Oh, no, they were not TOO GOOD for this!) They had the staff and the space. This would draw in more customers.
The coffee shop needed to be more inviting. Add some practical priced items. Add some comfy chairs and music. Create a destination point not just an after thought area! Encourage and start book clubs, Scrabble clubs, writer’s groups etc. Visit a real Starbucks location and learn! some of the stores use to do these types of customer oriented events.
Run fast from those pricey mall locales to equally well located but less expensive neighboring locations. Learn from the Walgreens formula for this one. Walgreens left the high price malls. Walgreen’s real estate department built free-standing sites which they then lease back to the retail division of the company at a tax benefit!
Yes, the Borders that remained would have been a different derivation. Maybe they could have remained in business.
What do you think?