Barnes & Noble, once on the brink of decline, is experiencing a remarkable revival. Under the leadership of CEO James Daunt, the company has embarked on an expansive strategy, reopening its historic Georgetown store. This revival is not just a business decision; it’s a cultural statement about the enduring power of physical books.
After years of closures, the world’s largest retail bookseller is opening more than 60 new locations. This pivot illustrates a significant strategic shift that prioritises localised customer engagement over generic marketing strategies.
Barnes & Noble’s Strategic Re-entry
In a bold move, Barnes & Noble has reopened its iconic Georgetown store in Washington, DC, reclaiming its position after vacating the location over a decade ago. This reopening is part of an ambitious plan to launch over 60 new stores this year, an endeavour that seemed improbable before the advent of James Daunt as CEO in 2018. Daunt’s leadership has sparked a renaissance, driving this physical bookstore’s return to its roots.
Transformation Under New Leadership
James Daunt differentiates himself by seeing himself as a bookseller, not a retailer, which shapes his ‘books first’ strategy. This approach involves allowing individual stores to choose books based on local preferences rather than following a corporate model. Removing the ‘one-size-fits-all’ model, he entrusted managers to curate their own selections.
Daunt’s strategy involved a calculated risk: sacrificing revenue from publishers for display space in favour of appealing to local tastes. This shift has resulted in a 7% increase in foot traffic since 2019, demonstrating the success of this strategy.
Influence of BookTok
The emergence of BookTok on TikTok in 2020 played a crucial role in Barnes & Noble’s recent success. Influencers in this community have not only reignited a love for reading but also guided stores on what to stock, leveraging social media to boost in-store engagement.
Shannon DeVito, head of books at Barnes & Noble, notes that BookTok trends have allowed stores to create flexible displays, drawing more customers in. Foot traffic has significantly increased, with people spending extended periods in-store, especially in sections featuring BookTok recommendations.
Kendra Keeter-Gray, a BookTok content creator, highlights the similarity of visiting Barnes & Noble to an exciting outing, akin to childhood visits to amusement parks. Her analogy captures the youthful enthusiasm driving today’s bookstore culture.
Community Engagement and Events
Barnes & Noble has capitalised on BookTok by hosting events like midnight releases and costume contests, boosting community involvement. These gatherings draw hundreds, cementing the store’s role as a cultural hub.
Shannon DeVito emphasises the resurgence of excitement surrounding book releases, likening the phenomenon to the fervour last seen with the Harry Potter series. The vibrant atmosphere confirms the ongoing popularity of physical books.
Physical Books as a Revenue Driver
Physical books remain the main revenue stream for Barnes & Noble, complemented by exclusive special editions. The enduring appeal of tangible books supports this business model.
Despite predictions of digital dominance, the past four years have shown a steady demand for print. Shannon DeVito expresses optimism for the future, highlighting a consumer preference for physical media over digital alternatives.
Contrasts with Amazon’s Strategy
Barnes & Noble’s adaptive model contrasts sharply with Amazon’s now-defunct bookstores, which relied on data-driven ‘ratings-first’ strategies similar to its online platform. Amazon’s attempt to apply its online success model in physical stores failed to attract customers.
James Daunt’s decisions reflect a belief in the never-fading allure of physical locations, drawing lessons from competitors’ missteps.
The Resurgence of Bookstores
Daunt’s strategy indicates a broader resurgence of physical bookstores, a movement driven by personalised customer experiences and curated content. This revival is not just about selling books but creating spaces that promote community and engagement.
Barnes & Noble’s success story demonstrates an evolving landscape where traditional retail models adapt to modern demands, offering a unique shopping experience. The success of such models hints at a prosperous future for brick-and-mortar stores, bucking the trend of digital dominance.
Barnes & Noble’s resurgence underscores the lasting appeal of physical bookstores, defying digital trends. By embracing community-driven models, the company has redefined retail, ensuring its relevance in a changing market.
