Market Overview

Barnes & Noble And Beer And Wine: The Big-Box Bookstore's New Concept

Barnes & Noble And Beer And Wine: The Big-Box Bookstore's New Concept

Give a toast to Barnes & Noble, Inc. (NYSE: BKS), both figuratively and literally, as the chain is set to open four "concept" stores that will feature restaurants with an expanded menu, including sales of beer and wine.

A Wall Street Journal report said the first concept store will open in Eastchester, New York, in October, followed by locations in Edina, Minnesota; Folsom, California; and One Loudon, Virginia.

Apart from its traditional cafe eats, the report said, "Barnes & Noble will offer a full breakfast, lunch and dinner menu, together with waiter service at the four new stores."

"We're going to offer good food, and because we're Barnes & Noble it's going to be affordable, not $50 dinner entrees," said Chief Executive Ron Boire.

Related Link: From Conference Call: Barns & Noble Says Reduced Expenses By Exiting Some Businesses, Outsourcing Functions

The bookselling giant, which faces stiff competition from, Inc. (NASDAQ: AMZN), is betting on restaurant business to revive store traffic that weighed on its company's recent fourth-quarter results.

For the quarter ended April 30, comparable-store sales declined 0.8 percent and total quarterly retail sales, which include the stores and the online business, fell 2.2 percent to $850 million.

"I think the expanded cafes are a very good idea," said John Tinker, an analyst with Gabelli & Co., told the Journal. "This gets people into the stores to do stuff. It's also something Amazon can't do. What we have to see is whether Barnes & Noble can increase its sales and fix its tech issues generally going forward. They have to execute."

The Journal said the company noted "books generate about 60 percent of bookstore revenue, while gifts, music, DVDs, toys and games contribute 20 percent of bookstore revenue combined. The cafe business adds just under 10 percent of bookstore revenue."

Shares of Barnes & Noble closed Thursday's regular trading at $11.26. In the pre-market hours, they fell 3.46 percent to $10.87.

Posted-In: Gabelli & CoAnalyst Color News Restaurants Media Trading Ideas General Real Estate Best of Benzinga


Related Articles (AMZN + BKS)

View Comments and Join the Discussion!

Latest Ratings

CFBSandler O'NeillInitiates Coverage On15.0
PAARBC CapitalMaintains20.0
CONNStephens & Co.Maintains20.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Stocks Hitting 52-Week Lows

Winnebago Shares Rose After Earnings, But Baird Thinks Fundamentals Are The Same