I have always wondered how the Nook E-reader from Barnes and Noble has faired against Amazon’s Kindle. Barnes and Noble has remained afloat compared to bankrupt rival Borders. This must be some indication of the Nook’s success. In a recent release Barnes and Noble has reported a 70 percent increase in holiday sales of the Nook. All e-books, periodicals, and app sales have increased 113 percent.
The Nook revenue has become the life line of the Barnes and Noble organization. Just how attractive? According to Forbes, “With the company forecasting digital content sales of $450 million in 2012, and projecting a run rate of $700-$750 million by the end of the fiscal year, it comes as little surprise that the Nook business is an attractive piece of the portfolio.” Over one billion dollars in Nook sales isn’t too shabby.
Barnes and Noble has stayed ahead of the curve by embracing e-technology. They do not seem destined to the fate of former brick and mortar giants like Blockbuster and Borders. However, Barnes and Noble storefront sales were only up 2.5 percent. Comparatively, BN.com sales are up by 43 percent and the Nook portfolio up 52 percent. How much longer will Barnes and Noble keep their storefronts open? Only time will tell. At least for now we all have a place to get Starbucks and read magazines…
Source: Steve Schaefer, Forbes