Company Barnes&Noble conducts the history since 1873 when its founder Charles Montgomeri Barns has opened in small town Uiton, the State of Illinois, trade in second-hand books. In 1917 his son William Barns, having sold the share in the fatherly company, has got over to New York where on the obtained money has got a part of bookstore Noble&Noble which also sold the educational literature, specializing on wholesales of books to schools, colleges and libraries.
The company, having changed the name on Barnes&Noble, in 1929 has passed in William Barnsa's full property, and in 1932, at the time of Great depression, has made the first contribution to the future prosperity - on cheap stuff has got in the center of New York, on the Fifth avenue, an extensive premise under a bookstore. In those days Barnes&Noble continued to be engaged in exclusively educational literature, and it has appeared a successful choice. Even during crisis schools and universities worked, people continued to study, so, it textbooks were required.
The company has developed for acceleration of service of visitors and has entered new system according to which each visitor at an input in bookstore received a paper strip with number into 1941. One clerks fixed on this strip of the name of the got books, others accepted a payment, the third - packed the bought editions, the original conveyor as a result turned out. Besides, bookstore Barnsa the first in the American book-selling industry has entered service by phone.
Business Barnes&Noble prospered. In 1944 the company has got small publishing house Hinds, Hayden&Eldredge and the beginnings itself to publish books.
However weakness of the company was that it completely kept on one head. In 1969 president Barnes&Noble John Barns, William Barnsa's son has suddenly died, and to operate business it has appeared there is nobody. Successors have hasty sold the company to conglomerate Amtel for which books were only one of set of directions. Incomes began to fall, and Amtel in 1971 has grasped the first offer to buy Barnes&Noble. The private businessman Leonard Ridzho who has paid for it modest enough sum of $750 thousand became the new proprietor of the company.
This time the bookstore, as they say, has fallen into in good hands. Leonard Ridzho had more than the 10-year-old experience of activity in book business - at first as the seller in a university bookstore, and then as the independent dealer - the owner of the small chain store system, located in colleges and universities. Becoming proprietor Barnes&Noble, Leonard Ridzho, without losing time, undertook business reorganization. It has sharply expanded assortment of the New York bookstore at the expense of various reference books, dictionaries, books on a household.
Throughout 1970-1980th years company Barnes&Noble endured the rapid growth period. Leonard Ridzho constantly experimented, created new formats of sales of book production and thought out new ways of development of the business. So, in 1974 Barnes&Noble became the bookstore first in America which have placed advertizing on television. In 1975 the company has started to offer best sellers from the list of the newspaper "The New York Times" with 40 %-s' discount, than has involved weight of readers in bookstore. Then Leonard Ridzho has opened bookstore-warehouse in which books at reduced prices were on sale. The size of a discount even on new editions and best sellers reached 40-90 %. For convenience of buyers the big premise has been divided into set of thematic sections that helped to be guided with this book sea, and wide passes allowed to use carts, like that were applied in supermarkets. Such form of trade has got huge popularity. However, then in assortment Barnes&Noble for the first time there were fiction, books on art, gift editions.
Simultaneously the company actively extended by means of absorption, getting small networks of bookstores in various cities of the USA. First it were the bookstores located in campuses (now this direction has turned to the isolated company Barnes&Noble College Booksellers numbering more of 600 bookstores in the USA and Canada), but then the company began to buy and traditional bookstores, transforming them in discounters. And in 1985 it has been spent about $300 million for absorption second-large in the USA book network B.Dalton Bookseller with almost 800 institutions located in basic in the bookstore centers and large department stores.
The turn has come to experiment formats actually bookstores. In due course small bookstores under signboard Barnes&Noble bookstore began to disappear, making way for more progressive as it has appeared, to a format of book supermarkets. They considerably differed and from traditional bookstores, and from "a discount warehouse" sample of the middle of 1970th years. First of all, it were very big bookstores in which was to 150 thousand names of books. Many of them were on sale with the considerable discount reaching of 40 %. However their convenience to the visitors, stimulating long pastime was the main feature of book supermarkets. In supermarkets special game zones for children, cafe where it was possible to have a bite and drink a coffee cup, small reading rooms have been provided, in wide passes there were armchairs and soft benches. Besides, managers of bookstores could suit meetings with authors under own initiative, poetic evenings, doll shows and carry out other actions for attraction of visitors.
Interesting, but in the CIS countries this niche which was widely adopted in the USA thanking Barnes&Noble bookstore while it is almost free. Even the largest Ukrainian and Russian bookstores, including well-known Moscow "Biblio-globe", make impression of the bookstores close and overflowed with people.
To receive means for expansion, Barnes&Noble bookstore in 1993 has let out the actions on a stock exchange. Leonard Ridzho has left to itself about 33 %-s' package, as much was and at its financial partner - the Netherlands investment fund Vendex which has given to Mr. Ridzho money for purchase Barnes&Noble bookstore in 1971 at Amtel. Simultaneously the company has started to close the small bookstores working under brand B.Dalton in a mass order. Expansion Barnes&Noble bookstore has led to reformatting of the American book market. The small bookstores belonging to independent private businessmen or small networks became the main victims. Their share in the market has sharply fallen. The largest book-selling companies Waldenbooks and Borders, from its part, have started to open book supermarkets by example Barnes&Noble bookstore, but have started this practice only in first half 1990th years when the most perspective markets have been already occupied. High-speed expansion Barnes&Noble bookstore has born fruit - competitors have hopelessly lagged behind it.
Problems have come to Barnes&Noble bookstore, as they say, absolutely on the other hand. In 1995 the company Amazon.com, selling books through the Internet has been based. In 1997 the volume of its sales has reached $150 million, and all began to predict a decline of traditional book-trade under the impact of the world computer network. It is necessary to tell that Barnes&Noble bookstore has reacted quickly. In the beginning of 1997 it has entered into the partner agreement with America Online, becoming the exclusive bookseller for 8 million its subscribers, and in March of the same year has based the site - barnesandnoble.com. In the late nineties - the beginning of 2000th years Barnes&Noble bookstore repeatedly was exposed to criticism for insufficient attention to development of the Internet resource. Observers amicably noticed that the company frankly is afraid that sales through the Internet can prevent its basic business. In online division special resources weren't put, it wasn't advertized almost. During Internet boom it there were rather severe charges. Market capitalization Barnes&Noble bookstore in the middle of 1999 more than three times conceded to an indicator Amazon.com though on its share it was necessary about 15 % of the American book market. Investors other figures more interested: shares of sales on the Internet where undividedly took priority Amazon.com (75 % of the market). It is possible to tell that at some instant at Leonarda Ridzho haven't sustained nerves. The company has again expanded the assortment, having opened in bookstores and on the Internet sale of music records, video, games, gifts to be made even in this respect with Amazon.com. In 1999-2000 the company invested more than $400 million in acquisition of chain store systems on sale computer and video games. According to Leonarda Ridzho, these actions were undertaken counting on a gain of teenage audience. Later, in 2004 Barnes&Noble bookstore has made the decision on allocation of game division in the independent company. Nevertheless, at all doubts, Mr. Ridzho hasn't receded from a general line, continuing to open all new book supermarkets in the USA and Canada and to close less profitable small bookstores B.Dalton. The Financial position of the company from it only крепло, allowing to cover losses from Internet division activity. And in 2001 the turn and Leonardu Ridzho has come to laugh. Crash of virtual economy sharply обвалил capitalization Amazon.com, simultaneously having muffled voices of those who predicted decline of traditional book-trade under the pressure of the Internet. Though further Amazon.com has corrected the affairs, but the electronic company nowadays isn't considered "grave-digger" traditional retailers.
In 2002 the post of the general director of the company was occupied with younger brother Leonarda Ridzho Stefen. This castling has at that time caused a lot of noise, and not too favorable for Barnes&Noble bookstore. Stefen Ridzho for 14 years was more younger the brother, and it, certainly, left the mark on their mutual relations. Unlike Leonarda known for the rigid character, sharp statements and irreconcilability in relation to competitors, Stefen was reputed more the gentle person, skillful переговорщика and the diplomat. Analysts, making comments on arrival of the new general director in Barnes&Noble bookstore, openly expressed doubts that Stefen Ridzho can become the worthy successor of the well-known brother. Besides, they expected conflicts between brothers, and earlier repeatedly disagreeing as Leonard wasn't going to leave for rest, having held a post of the chairman of the board responsible for development of strategic decisions. But fears have appeared exaggerated. "The brotherly" command has shown high enough efficiency and ability to find adequate answers to new calls.
In first half 2000th years on the American book market networks of hypermarkets - Wal-Mart have started to leave, Costco, etc. These competitors were where more dangerously Amazon.com. They offered the limited assortment of editions, but, as a rule, it there were the best sellers sold at the low prices. For Barnes&Noble bookstore, whose strategy in many respects was based on the offer of books with discounts, occurrence of such contenders was especially unpleasant.
Struggle against giants the company has moved in three directions. First, began to raise comfort and appeal of the bookstores to visitors. In 1993 she has agreed with a network of coffee houses Starbucks about opening of its institutions in the bookstores. Last years book supermarkets Barnes&Noble bookstore are specially reconstructed to equip an extensive zone for cafe, and not only for Starbucks, but also for other brands. These institutions belong Barnes&Noble bookstore as the franchize, employees of the company, however meal and the drinks presented to cafe work there, answer the strict quality standards of corresponding firms. In bookstores checks on conformity to these standards are regularly spent, and only in case of their successful passage the company keeps the right and further to use logos of partners.
Secondly, Barnes&Noble bookstore таки has been compelled to be got involved in price war with hypermarkets, having developed for the buyers the special program of loyalty. For $25 a year each visitor can get the club card granting the right to 40 %-s' discount at purchase of best sellers, 20 %-s' - at acquisition of books in the firm cover, calculated on children's audience, and 10 %-s' - on all other goods, except for gift cards. This program has appeared very popular.
The site (nowadays he is known under a name bn.com) plays now appreciable enough role in company business. On its share it is necessary no more than 10 % of sales, but it is widely used as the online catalog. The marketing researches spent to 2006 have shown that 47 % of users of a site searching on it any literature, then get it in bookstore. A variety of a choice too remains till now powerful advantage Barnes&Noble bookstore in struggle against hypermarkets. According to Stefena Ridzho, best sellers like "Harry Potter" and other fashionable books on which the basic competitors stake, for Barnes&Noble bookstore are no more than pleasant addition to the basic program. About 95 % of incomes the company receives from sales of less popular specialized literature, and demand for it is stable.
Besides, last years Barnes&Noble bookstore pays much attention to reduction of expenses. Within the limits of this policy there is a further concentration of business in the big book supermarkets where it is possible to reach essential economy on scales. During the last years the question on merge Barnes&Noble bookstore and the second-large American book-selling company Borders that would allow to achieve a considerable synergy was some times brought up, however against such association regulating bodies and the publishers who are afraid of occurrence of a monopolist object. Last time that this transaction won't take place, appeared in August, 2008
Helps Barnes&Noble bookstore as well own publishing. Though from sale of independently let out books the company receives no more than 5 % of the income, this share is planned to increase. Within the limits of this strategy the company began to offer clients such services, as the press of books "to order" and sale of old numbers of hundreds American periodicals in an electronic or printing kind.
At last, the company management considers as the third direction of increase of competitiveness Barnes&Noble bookstoretransformation of bookstores into the local cultural centers. Recently in Barnes&Noble bookstoreeven more often invite interesting people and local celebrities for carrying out of creative evenings and lecturing, use of bookstores for the organization of any events for local communities, meetings of clubs on interests etc. All it is in every possible way welcomed also won't find neither in Wal-Mart, nor in Costco, in Amazon.com, though the book there, certainly, slightly more cheaply.
Recent occurrence in market "electronic books" - portable devices with the liquid crystal screen into which memory it is possible to load contents of the whole library, has once again recovered conversations on close decline of the traditional literature. However Stefen Ridzho nevertheless doesn't see an occasion to a panic. "The population grows old, - he speaks, - and aged people are more senior 40 years, no less than students, continue to remain major customers of bookstores". Besides, last years stably and quickly sales of the children's literature, especially, richly illustrated books of informative character grow.
