Decreasing interest in products cannot be the answer for future sales declines, as it was for the 2016 holiday season in fact, Neil Saunders, managing director of GlobalData Retail, says the bookseller should ditch efforts with the Nook division, which has “little future” and focus more heavily on its online operations. While reducing costs is certainly a must for Barnes & Noble, the store’s struggle in e-commerce is a significant barrier to profitability that isn’t getting enough attention. "In fiscal 2018, we are focusing on ways to improve the business and reignite sales through an aggressive test and learn process and companywide simplification process that will take out costs." "While fiscal 2017 proved to be a challenging year for the company, we reduced costs by $137 million, enabling us to sustain our profitability level," Parneros said in a statement. The bookseller elected four different CEO’s in as many years, perhaps limiting its ability to implement a stable turnaround plan.ĭespite the high turnover in Barnes & Noble’s executive positions, current CEO Demos Parneros seemed pleased with the company’s cost reductions for the year and expressed his determination to continue making changes in 2018. When considering why Barnes & Noble is struggling to get ahead, it’s hard to ignore the company’s frequent leadership shakeup.
The company’s year-end earnings report reveals the decline of a company struggling to handle e-commerce challenges and in need of a new approach to its brick and mortar storefronts.
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