From Megan McArdle at The Daily Beast:
Leonard Riggio, the founder of Barnes and Noble, wants to buy his company back. Or at least the retail parts. Matt Yglesias notes that this seems to suggest that the Nook is doomed; it may be a good product, but it can’t compete in a space crowded by Amazon, Google, and Apple. I think he’s right.
But I’m not sure the retail stores are a much better business. When I looked at the Big Box market last fall, I emerged deeply skeptical that anything can be done to save that particular business model. Not with the floor space that these stores have. Stores like Best Buy and Barnes and Noble used to be the leaders in both price and selection (which is why they put so many smaller stores out of business.) Now that leader is Amazon. And I don’t see any way for either company to get that title back.
. . . .
If I were Mr. Riggio, I’d go back and try to reconceptualize the bookstore from scratch, starting small and expanding as needed, rather than trying to salvage the brilliant idea of three decades ago.
Link to the rest at The Daily Beast