Barnes and Noble 1999 Annual Report Download - page 5

uch energy and huge sums of capital have been spent in
the pursuit of the still-unrealized promise of Internet retailing.
I’m convinced that the greater potential is with what I call “retail
Internetters” or retail-based Internet merchants. Let me explain.
While the financial markets of the moment would appear to favor
the virtual over the real, and spin over substance, I believe that the
achievers in this century’s multi-channel marketplace will be those
with the ability and mettle to combine the best components of
retailing — physical presence, brand loyalty, and direct customer contact —
with those of the Internet — electronic media, email, home shopping,
and home delivery capabilities .
Regardless of which strategy proves the ultimate winner — whether
retail alone, e-commerce alone, or a combination of both — one point
is absolutely clear: the Internet is increasing consumer spending
and, as a result, consumers are driving the new economy. While
it is true that some online sales are transfers of traditional store
business, the numbers clearly show that consumers are spending
more. Just look at the results Barnes & Noble posted for the past
holiday season: sales at Barnes & Noble.com tripled , from $26 million
to $82 million, while during the same period our superstores
posted comparable sales gains of six percent. If that isn’t evidence
of accretion, I don’t know what is.
LETTER TO OUR SHAREHOLDERS
M
1999 ANNUAL REPORT
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