One thought on “Why Borders Failed

  1. Bruce R. Gilson

    Barnes & Noble is suffering too. The real reason Borders failed is that brick & mortar bookstores cannot compete with the likes of Amazon.com, just as brick & mortar music stores like Tower Records couldn’t compete with Amazon and iTunes.

    My wife, for over 10 years, worked at a Borders store that closed a few months ago. Because she worked there, I got a 33% discount on any book I bought at Borders, the same discount she got as an employee. Yet there were books I could MORE CHEAPLY buy on Amazon.com than at Borders. If Amazon could undersell Borders even when I got 33% off, imagine what the case was for a “normal” patron, who didn’t get that employee discount! Yet Amazon.com is making a good profit. Its stock has surged more than 50% in the past year.

    The expenses involved in running a brick & mortar bookstore are just too high for Borders, or B&N, or Books-a-Million, to overcome.

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