Borders Looks To Digital Distribution Prospects
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 âa little late to the gameâ of digital distribution. However, Edwards added, âThe gameâs just starting, and we wonât see the full shakeout of the digital revolution for at least another six months to a year.â
Domestic same-store sales at Borders were down 11% during the first quarter. Factoring out music, movies, and other âmultimediaâ categories â which the retailer has substantially curtailed in stores since 2009 â comp sales were down by 7% year over year. By Reuters
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