Borders Looks To Digital Distribution Prospects

May 28, 2010 · Posted in M&E Daily, Today's M&E Connections 

Reporting a 16 percent revenue decline for its first quarter, Borders Group said yesterday that it expects its revamped Borders.com store and forthcoming Kobo e-book reader (in stores July 2) to offset slumping physical media sales. In an interview with Reuters, interim chief executive Mike Edwards acknowledged the specialty retailer is “a little late to the game” of digital distribution. However, Edwards added, “The game’s just starting, and we won’t see the full shakeout of the digital revolution for at least another six months to a year.”

Domestic same-store sales at Borders were down 11% during the first quarter. Factoring out music, movies, and other “multimedia” categories — which the retailer has substantially curtailed in stores since 2009 — comp sales were down by 7% year over year. By Reuters

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