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The Borders Effect
The Le (03/23/2011)
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Book Stores in the US Industry ReportAs you can see, the downfall of Borders Books could have a ripple effect across book and game manufacturers alike. Can Borders survive bankruptcy? Possibly, but I have my doubts. Tim Anderson from Case Western University provided HeroClix World with the in-depth 45121 Book Stores in the US Industry report, which had this to say:

Over the five years to January 2010, the company experienced a negative revenue growth rate of 4.6% due to rising operating expenses, a decrease in consumer spending with the recession beginning in 2008, and a slow adaptation to new technology compared to Barnes & Noble, the company’s main competitor.

Borders experienced a sales decrease of 13.9% over the year ending January 2010. The decline was due to lower customer traffic and the continuing popularity of reading books in a digital format compared to a physical format. Borders also closed 212 Waldenbook stores because of the segment’s continuing net loss over the past three years. Lastly, the cost of books and rent rose, which increased the Company’s expenses. Overall, the net income over the year declined 41.4% from the previous year.

 

Obviously those negative numbers continued through 2010, because here we are in the midst of their bankruptcy.

The numbers are really telling though, and I didn't even mention the stores they closed/sold off in the UK, Singapore, and New Zealand -- all bad signs for a company that went from a $143 million net income in 2004-2005 to a $36 million net income in 2009-2010.


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Your Comments:
Diamond is the only supplier in the UK!!!!!!!!! well, the only one that really supplies heroclix!

Posted by: adam on 3/23/2011 6:07:25 PM
The Borders in my area hasn't carried Heroclix since Arkham Asylum. A search for "heroclix" in their online store turns up zero items. I can understand how the bankruptcy might affect distributors but it seems like the relation to Heroclix is indirect. Borders stopped supporting our game years ago.

Posted by: Wombatboy on 3/23/2011 5:10:25 PM
Man...It's finally happening...I remember getting Fantastic Forces, and Icons booster packs there. Ah, the memories...I'll miss you, Borders.

Posted by: Owlman166 on 3/23/2011 12:14:12 PM
Seems we're really talking about the death of print media and this is just one more symptom. Borders is closing one (of several) stores in my neck of the woods - I personally will continue to go to browse their good selection of graphic novels/comic compilations.

Posted by: spudeus on 3/23/2011 11:05:27 AM
hmm...an incentive to release more of the sold out product.......more GSX and 75th please....

Letting anyone get in the hole for so much just asking for trouble, bad business. Good for local stores, my friend has been a book/game store for over 30 years he loves the news.

Posted by: scourge101 on 3/23/2011 11:04:13 AM
100k really is not that big in large scope. NECA has dropped accounts like buckets of water that have been worth over 250k and they don't worry about it.

NECA knows where its brand efectiveness is.. and borders never really was in that line. Small gaming stores and comic book shops (for wixkids at least) is.

Not a big deal.

Posted by: rockman on 3/23/2011 10:51:52 AM