Barnes and Noble 2014 Annual Report Download - page 12

SEGMENTS
The Company identifies its operating segments based on
the way the business is managed (focusing on the financial
information distributed) and the manner in which the chief
operating decision maker interacts with other members
of management. The Company’s three operating segments
are: B&N Retail, B&N College and NOOK.
B&N Retail
This segment includes  bookstores as of May , ,
primarily under the Barnes & Noble Booksellers trade
name. These stores generally offer a dedicated NOOK®
area, a comprehensive trade book title base, a café, and
departments dedicated to Juvenile, Toys & Games, DVDs,
Music, Gift, Magazine and Bargain products. The stores
also offer a calendar of ongoing events, including author
appearances and children’s activities. The B&N Retail
segment also includes the Company’s eCommerce web-
site, barnesandnoble.com, and its publishing operation,
Sterling Publishing.
Barnes & Noble stores range in size from , to ,
square feet depending upon market size, with an overall
average store size of , square feet. In fiscal ,
the Company reduced the Barnes & Noble store base by
approximately , square feet, bringing the total
square footage to . million square feet, a . decrease
from fiscal . The Company opened three new Barnes &
Noble stores in fiscal , which total , square feet
in size. Each Barnes & Noble store features an authoritative
selection of books, ranging from , to , titles.
The comprehensive title selection is diverse and reflects
local interests. Bestsellers typically represent between
approximately  and  of Barnes & Noble store sales.
Product Master, the Company’s proprietary inventory
management database, has approximately  million titles.
By enhancing the Company’s existing merchandise replen-
ishment systems, Product Master allows the Company to
achieve high in-stock positions and productivity at the
store level through efficiencies in receiving, cashiering and
returns processing. Complementing this extensive on-site
selection, all Barnes & Noble stores provide customers with
access to the millions of books available to online shoppers
at barnesandnoble.com while offering an option to have the
book sent to the store or shipped directly to the customer.
At the center of this eCommerce program is the Company’s
website, barnesandnoble.com.
Sterling Publishing
Sterling Publishing is a leading publisher of non-fiction
trade titles. Founded in , Sterling publishes a wide
range of non-fiction and illustrated books and kits across a
variety of imprints, in categories such as health & wellness,
music & popular culture, food & wine, crafts & photogra-
phy, puzzles & games and history & current affairs, as well
as a large children’s line. Sterling, with a solid backlist and
robust value publishing program, has a ,+ title base of
eBooks and print books. In addition, Sterling also distrib-
utes ,+ titles on behalf of client publishers.
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 May , , B&N College operated 
stores nationwide. These stores are operated under 
contracts, which can cover multiple stores and include over
 million students and faculty. B&N College’s customer
base, which is mainly comprised of students and faculty,
can purchase various items from their campus stores,
including textbooks, textbook rentals and course-related
materials, emblematic apparel and gifts, trade books, com-
puter products, NOOK® products and related accessories,
school and dorm supplies, convenience and café items.
B&N College provides extensive textbook rental options to
its customers and has expanded its digital textbooks and
other course materials through a proprietary digital plat-
form (Yuzu™). A significant number of textbooks are now
available in multiple formats: new, used, rental and digital
(rental and ownership), resulting in improved choice and
substantial student savings.
B&N College operates  traditional college bookstores
and  academic superstores, which are generally larger
in size, offer 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 up to , square feet. The academic super-
stores range in size from , to , square feet.
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 official
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 fixed
guarantee.
10 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued