Barnes and Noble 1997 Annual Report Download - page 14

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S
ometime in the fall, we will
reach yet another milestone
with the opening of the 500th
Barnes & Noble store, an event
which will be celebrated company-
wide. Our first 500 stores repre-
sent the establishment of an
enduring franchise—one we
expect will result in increased
market share in the years ahead.
As Barnes & Noble enters
1998, we remain the only book
retailer operating through all four
channels of distribution:
retail stores, the Internet,
1-800-THE BOOK and
mail order. Barnes &
Noble’s singular ability to
reach consumers through
all available channels will
enable us to garner
impressive market share growth,
particularly in light of favorable
and improving demographics.
Further, new media like the
Internet are stimulating interest
in books that will result in an
expansion of the market.
Barnes & Noble will continue
to emphasize the merchandising
and marketing of books published
under the Barnes & Noble Books
imprint. The publishing imprint,
in addition to differentiating
us from the competition, repre-
sents value to our customers,
while at the same time creating
incremental sales and higher
margins. BarnesandNoble.com
is an important channel for
its distribution.
In 1998 we anticipate contin-
ued operating profit improvement
due to strong comparable store
sales and more expense leverage.
This will result in accelerating
cash flows and will allow us
to aggressively increase advertising
expenditures in order to capital-
ize on BarnesandNoble.com’s
sales momentum.
In 1997 we reinforced our
excellent existing leadership with
key appointments. Steve Riggio
became Vice Chairman of the
company. J. Alan Kahn, formerly
President of our affiliate, Barnes
& Noble College Bookstores,
became Chief Operating Officer;
Marie Toulantis joined as Executive
Vice President of Finance. Jeff Killeen
was appointed Chief Operating
Officer of BarnesandNoble.com.
We also welcomed Frank
O’Neill as President of B.Dalton
Bookseller to lead our ongoing
strategic campaign to focus that
group of stores into a more
profitable core. Mary Ellen
Keating joined as Senior Vice
President, Barnes & Noble
Corporate Communications and
Public Affairs.
We enter 1998 with an
expanded management team and
a sharp, strategic focus on those
ventures that will best serve our
premiere position as the world’s
largest bookseller. We are pleased
that our efforts have returned sig-
nificant value for our investors in
1997, and look forward to continu-
ing to maximize shareholder value.
For 1998 and beyond, Barnes & Noble looks forward to capitalizing on the
milestones
achieved in 1997. We plan to open approximately sixty new Barnes & Noble stores, continuing
one of the most
sustained
rollouts in retailing history.
10
CLOCKWISE:
MARY ELLEN KEATING
Senior Vice President, Corporate
Communications& Public Affairs
FRANK J. O’NEILL President,
B. Dalton Bookseller J. ALAN
KAHN Chief Operating Officer
A DYNAMIC OUTLOOK
1998
AND BEYOND