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BizReport : E-commerce : March 26, 2007

Borders Books breaks from Amazon.com

Borders Books is breaking ties with Amazon.com and going solo by bringing together its bricks and mortar stores with an internet presence all of its own.

by Helen Leggatt

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Books are big business online and Amazon.com has been the driving force for quite some time. In 2001, Borders Books (BB) made the decision to work alongside Amazon.com rather than develop its own web store. Now, in a recent announcement, made after disappointing Q4 2006 results, BB has confirmed its intention to go online alone and “mesh the in-store sales with online”.

BB’s plans include developing its own website, closing many of its bricks and mortar stores abroad and revitalising its 499 existing superstores.

A new store concept is in development which includes a digital center where customers can purchase various digital products, including music and audiobooks.

Anne Roman, a BB spokeswoman, said the website would also allow them to connect with the 17 million customers who are part of the company's rewards loyalty program.

“We need to reinvent our business to exploit the rapid changes taking place in how consumers access information and entertainment,” said BB’s CEO George Jones in a recent press release. “Our ultimate goal is to make Borders a vital community gathering place where people come together to see, touch, interact, and learn – online and in-store.”

Tags: Amazon, Borders Books, digital media, social network

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