Barnes and Noble 2011 Annual Report Download - page 12

B&N COLLEGE
B&N College is one of the largest contract operators of
bookstores on college and university campuses across the
United States. As of April 30, 2011, B&N College operated
636 stores nationwide serving over 4.6 million students
and faculty members. The B&N College customer base,
which is mainly comprised of students and faculty, can
purchase various items from their campus stores, includ-
ing textbooks and course-related materials, emblematic
apparel and gifts, trade books, computer products and
eReaders, school and dorm supplies, and convenience and
café items. In fi scal 2011, B&N College began off ering a
textbook rental option to its customers, and expanded its
electronic textbooks and other course materials through a
proprietary digital platform (NOOK Study™). B&N College
off ers its customers a full suite of textbook options – new,
used, digital and rental.
B&N College operates 603 traditional college bookstores
and 33 academic superstores, which are generally larger
in size, off er cafés and provide a sense of community that
engages the surrounding campus and local communities in
college activities and culture. The traditional bookstores
range in size from 500 to 48,000 square feet. The academic
superstores range in size from 8,000 to 75,000 square
feet, includes a café, and carry a large selection of course
required textbooks, supplies, emblematic apparel, gifts,
and 10,000 to 112,000 titles of trade and reference books.
B&N College generally operates its stores pursuant to
multi-year management service agreements under which
a school designates B&N College to operate the offi cial
school bookstore on campus and B&N College provides the
school with regular payments that represent a percentage
of store sales and, in some cases, include a minimum fi xed
guarantee.
B&N College’s business strategy is to maintain long-term
relationships with colleges and universities by providing
high-quality service to college administrators, faculty and
students.
B&N.COM
This segment includes the Company’s online business,
which includes the Company’s eCommerce site and
features an eBookstore and digital newsstand. Additionally,
this segment includes the development and support of the
Company’s NOOK product off erings.
The eBookstore and digital newsstand allows custom-
ers to purchase over two million eBooks, newspapers
and magazines. Barnes & Noble’s eBookstore is available
on a wide range of digital platforms, including NOOK™,
iPad™, iPhone®, iPod touch® and select BlackBerry® and
Motorola™ smartphones, as well as most laptops or full-
sized desktop computers. Barnes & Noble has implemented
innovative features on its digital platform to ensure that
customers have a seamless experience across their devices.
The Company has a multi-channel marketing strategy that
deploys various merchandising programs and promotional
activities to drive traffi c to both its stores and website. At
the center of this program is Barnes & Noble.com, which
receives over one billion visits annually. In this way, Barnes
& Noble.com serves as both the Company’s direct-to-home
delivery service and as an important broadcast channel
and advertising medium for the Barnes & Noble brand. For
example, the online store locator at Barnes & Noble.com
receives millions of customer visits each year providing
store hours, directions, information about author events
and other in-store activities. Similarly, in Barnes & Noble
stores, NOOK customers can access free Wi-Fi connectivity;
enjoy the “Read In Store” feature to browse many complete
eBooks for free, and the “More In Store” program, which
off ers free, exclusive content and special promotions.
10 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued