Barnes and Noble 1999 Annual Report Download - page 8

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But of course, the big news of 1999 was the initial public
offering (IPO) and skyrocketing growth of Barnes & Noble.com,
in which Barnes & Noble, Inc. retains a 40 percent interest.
Barnes & Noble.com generated sales of more than $200 million
in 1999. This was more than three times 1998’s sales, and was
significantly higher than sales of any other traditional retailer
online. Barnes & Noble is indisputably the leading “retail
Internetter,” not only in terms of sales, but also in numbers of visitors and page views. And we intend
to hold firmly to our substantial lead. Barnes & Noble.com is building a massive and loyal customer base,
with nearly five million cumulative customers at last count, and impressive repeat orders of 68 percent.
However, once the ink is dry on this annual report, those numbers will have climbed still further.
Last year was indeed the threshold for both Barnes & Noble and the entire retail sector. We believe change —
dynamic, exhilarating change — will be the order of the day for the next decade, and the eraser will be as
important as the drafting pencil in redefining our business. The time for toe-dipping is long past. Accordingly,
we intend to seize our future aggressively on all fronts: retail, online and digital. And, despite the roller-
coaster-like performance of the NASDAQ,and especially of e-commerce stocks, we believe our investment
in Barnes & Noble.com is an attractive one with much upside potential. Unlike many other e-commerce
enterprises, this company is debt-free and cash-rich, with a currency that will enable it to grow.
Moreover, Barnes & Noble.com, as well as the Internet itself, is contributing to the growth of the consumer
book market as a whole. Just as television, movies, and even book clubs stimulate retail book sales, the
Internet is putting millions of messages about book content in front of consumers every day. As a result,
“hits” on our site as well as visits to our stores have increased.
Clearly, we have only just begun to scratch the surface. The new technology promises expansion and
enhancement throughout the entire paradigm of book distribution. Indeed, it is clear that digital technology
will soon transform the very medium of the book itself. Barnes & Noble has moved assertively to position
itself at the forefront of this revolution, investing heavily in online publishing, print-on-demand, and
e-book technologies.
In many respects, 1999 was a pivotal year for Barnes & Noble. We proved our belief that retailing
and e-commerce can be mutually supportive, not mutually exclusive propositions. And we ended the year
exactly where we planned: with a growing bottom line for Barnes & Noble, Inc. and a growing top line for
Barnes & Noble.com.
7
Human Resources
From left:
Michelle Smith,
Vice President of
Human Resources
Administration;
Thomas Bennett,
Vice President, Human
Resources Retail;
Thomas Tolworthy,
President, Barnes
& Noble Booksellers.