Borders closing OKC store - Norman Spared

[bombermwc]

It's too bad, but places like B&N, Borders, and Books-a-Million haven't been able to get on the wagon with e-books or compete with the prices of Amazon. Unless they can start altering their business models, they're going to follow the CD industry (which is down more than 1/2 compared to only 3 years ago when it was already declining in favor of electronic stores).

Price is #1 here. When you can get the same exact thing on Amazon and get it shipped (1/2 the time for free) for less than the brick and mortar store sold it for...why go TO the store? Not to mention the fact that when you shop online, you can always find what you need and when you're IN the store, half the time they don't have it and have to order it. If you have to wait, why not get it online?

It's sort of like buying groceries online though. What you miss out on is the browsing. A random book you wouldn't have thought of doesn't catch your eye now. Little calendars, bookmarks, etc. And the "customers that bought this, also bought this...." doesn't quite fit the same. It works great of movies a lot of the time with surprising results, but books just aren't the same. But cost is the ultimate winner. People are willing to give up a lot for price.

[BG918]

I don't go for the books or music but to have coffee, maybe a cookie, bagel or pastry, and read magazines. Judging by how busy the cafe is compared to the rest of the store I imagine many others do the same. I can do that at Border or B&N but I like the magazine selection better at Borders, especially the one in Norman since it carries several of the architecture magazines I like to read while B&N doesn't.

[Kerry]

The problem is all these so called intellectuals went to Borders and read books and magazines - but they didn't buy them. Freeloading trumps educational attainment every time.

[bluedogok]

Who want to explain this? They rent/lease the land, but they pay and own the building.

There are many different ways to structure a property deal. There are build-to-suit deals with various options.

Most of the Walgreen's stores that I did in Oklahoma were a build-to-suit with a long term lease (10, 15 or 20 year). This means the developer (one who has been discussed here several times) buys the property and builds the store for the tenant but it is built to the tenants specifications, the developer retains ownership. This gives the tenant the flexibility (via a buyout clause) to terminate the lease according to the terms of the lease. Sometimes the tenant also has a purchase agreement negotiated in the lease where for a specified amount they can purchase the land/building from the developer or current owner. One store that I did was a "turnkey" building, in this the developer does the same thing with land and construction but at the conclusion of construction the tenant (Walgreen's in this case) actually closes the deal by purchasing the land/building.

You also have land lease/building owner arrangements, most of the building in Downtown Dallas are this arrangement. This type of deal may have many partners, the land is owned by one party and the developer enters into an agreement to lease the land long term (most of the Dallas leases that I saw were 100 year) and the building is financed/owned by another party. The First Baptist Church of Dallas was one of the largest property owners in Downtown Dallas at that time (almost 20 years ago).

Most of the stores here were tenant finish-out in existing centers, since the Borders at The Domain is just outside our window I know the rent there is probably a bit extreme. They do have a stand-alone store in Southpark Meadows but I don't think they own it, it was a build to suit but I think Endeavor owned the actual building.

[bombermwc]

I don't go for the books or music but to have coffee, maybe a cookie, bagel or pastry, and read magazines. Judging by how busy the cafe is compared to the rest of the store I imagine many others do the same. I can do that at Border or B&N but I like the magazine selection better at Borders, especially the one in Norman since it carries several of the architecture magazines I like to read while B&N doesn't.

Freeloading - yup that'll keep a business open won't it.

[SoonerDave]

The problem is all these so called intellectuals went to Borders and read books and magazines - but they didn't buy them. Freeloading trumps educational attainment every time.

Is it truly "freeloading" if the company that offers it consciously does so as part of the model to get people in the stores, just like a grocery store offers a cheap price on a particular product as a "loss-leader" to engage customers? That is, B&N and Borders have/had comfy chairs and coffee bars as part of their stores for as long as I remember. I believe I remember them at one point even advertising that you can read at your leisure and you won't be "bothered" by sales people. That model seemed to be working just fine until the Internet showed up and electronic content delivery took over, so no matter how you look at it, the "freeloading" wasn't part of the problem. It worked until the broader dynamics of the marketplace changed in a whirlwind around them.

[jn1780]

Is it truly "freeloading" if the company that offers it consciously does so as part of the model to get people in the stores, just like a grocery store offers a cheap price on a particular product as a "loss-leader" to engage customers? That is, B&N and Borders have/had comfy chairs and coffee bars as part of their stores for as long as I remember. I believe I remember them at one point even advertising that you can read at your leisure and you won't be "bothered" by sales people. That model seemed to be working just fine until the Internet showed up and electronic content delivery took over, so no matter how you look at it, the "freeloading" wasn't part of the problem. It worked until the broader dynamics of the marketplace changed in a whirlwind around them.

Good point. Also, I think Starbucks and social networking is doing what "mega-bookstores" use to do.

[BG918]

Freeloading - yup that'll keep a business open won't it.

Yep. A big reason they are going out of business. Same for newspapers. Why subsribe to the Oklahoman when I can get the content online for FREE?

[venture]

Yep. A big reason they are going out of business. Same for newspapers. Why subsribe to the Oklahoman when I can get the content online for FREE?

For the Sunday paper coupons? Why else? :-P LOL Granted that may just be me, but I enjoy saving over 50% off my grocery bill by using them.

[Patrick]

For the Sunday paper coupons? Why else? :-P LOL Granted that may just be me, but I enjoy saving over 50% off my grocery bill by using them.

Me too. That and the TV guide. They went back to the old format of the TV guide so maybe they're keeping it around.

[ljbab728]

Yep. A big reason they are going out of business. Same for newspapers. Why subsribe to the Oklahoman when I can get the content online for FREE?

Are you the only one in your family that reads the newspaper? In my house we read the newspaper in the morning while relaxing in our recliners with coffee or orange juice while passing around the different sections of the paper. It would not be very convenient to all gather around the computer screen and have everyone read the same article at the same time or, if you're using a laptop, pass the laptop around.

[Larry OKC]

Me too. That and the TV guide. They went back to the old format of the TV guide so maybe they're keeping it around.

When did they go back? I didn't get one in last Sunday's paper (and still saw the ads encouraging you to subscribe to the guide???

[kevinpate]

... It would not be very convenient to all gather around the computer screen and have everyone read the same article at the same time or, if you're using a laptop, pass the laptop around.

maybe that's why God inspired someone to invent the convenient and inexpensive wireless netbooks?

[Thunder]

maybe that's why God inspired someone to invent the convenient and inexpensive wireless netbooks?

Aye, aye! There is no reason for someone to not own a laptop...notebook...and now this new name, netbook. What's next? Something about iPad and whatever else. Many of these are very affordable. One can receive so easily and save our precious Mother Earth from the extra littering.

[BG918]

Are you the only one in your family that reads the newspaper? In my house we read the newspaper in the morning while relaxing in our recliners with coffee or orange juice while passing around the different sections of the paper. It would not be very convenient to all gather around the computer screen and have everyone read the same article at the same time or, if you're using a laptop, pass the laptop around.

They all read it online too, on their own time in the morning before work, during work, in the evening, etc. I usually read it on my phone if I'm not at my desk. The idea of sitting around and passing the newspaper around is old-fashioned and, for most people, obsolete. It's all about convenience and having the news always update on my phone so I can check it whenever and wherever I want is important. The only paper news I still read is Time Magazine, at Borders/B&N for free. If I get an iPad soon I will probably subscribe to the e-edition though, again for convenience.

I have no use for a TV Guide either because my TV's have cable boxes that automatically pull up the guide. I have the few shows I watch set to DVR and watch on my own time, not 8/7 Central...

[rcjunkie]

When did they go back? I didn't get one in last Sunday's paper (and still saw the ads encouraging you to subscribe to the guide???

With the exception of the launch of the new improved TV Guide, my Sunday paper has always had the old format TV guide included.

[dismayed]

A while back I read several articles on Borders and their management and decision-making process up at the corporate level. As far as I can tell they're the GM of the book world... no surprise that they are tanking.

Austin closing up doesn't surprise me. That is a really wired city. For example a restaurant or other local business opens here and it is probably not going to have a website. There, it's almost a de facto standard. Probably enough people there buy eBooks that there isn't as much room for competition.

[Steve]

Yep. A big reason they are going out of business. Same for newspapers. Why subsribe to the Oklahoman when I can get the content online for FREE?

Get ready... the age of getting news - real journalism - for free online is coming to an end.

[BG918]

Get ready... the age of getting news - real journalism - for free online is coming to an end.

I would pay for a subscription to the online newsfeed, but right now it's all available free. I usually scan over several newspapers a day (NY Times, Oklahoman, Tulsa World, Dallas Morning News, Austin American Statesman, Denver Post, KC Star) and if they all go to online subscription I would probably just pick one or two.

[Thunder]

Get ready... the age of getting news - real journalism - for free online is coming to an end.

Nah. Smart people don't pay to access like what that junk NewsOK does. People share login info...pass whole articles onto somewhere else, etc. Why pay NewsOK? They're so unreliable anyway.

[Kerry]

The only way on-line news is going to make money by charging is if it all done through an app or software. Every news organization that has tried to charge find their readership drops like a rock and loses advertiser. Conversely, people that pay for an on-line subscription don't want ads. Pick your poison.

We will see how Rupert Murdoch does with 'The Daily'.

http://www.thedaily.com/

[flintysooner]

The only way on-line news is going to make money by charging is if it all done through an app or software. Every news organization that has tried to charge find their readership drops like a rock and loses advertiser. Conversely, people that pay for an on-line subscription don't want ads. Pick your poison.

We will see how Rupert Murdoch does with 'The Daily'.

http://www.thedaily.com/

I've been reading The Daily. I think it is pretty good. The images are outstanding. The App is a little quirky for me still. I haven't decided whether I will subscribe although I am leaning against. The big issue for me is whether or not I actually will have enough time to read the articles.

I do subscribe twice to The Oklahoman -- one for my iPad and the other for my Kindle. Probably keep both of them. I really do like The Oklahoman's digital offerings.

[MikeOKC]

The only way on-line news is going to make money by charging is if it all done through an app or software. Every news organization that has tried to charge find their readership drops like a rock and loses advertiser. Conversely, people that pay for an on-line subscription don't want ads. Pick your poison.

We will see how Rupert Murdoch does with 'The Daily'.

http://www.thedaily.com/

The Oklahoman has one of the best iPad apps in the entire country. 7 Day trial on the iPad. If you look for it in the app store it's NOT the "NewsOK" app, it's "The Oklahoman". The Oklahoman app looks like a print edition - it's incredible. It's been getting national attention, too. Poynter, etc.

[Larry OKC]

With the exception of the launch of the new improved TV Guide, my Sunday paper has always had the old format TV guide included.

That's what I am talking about, it was always included with the Sunday paper, then they made the switch to the subscriber based one and threw it in for "free" the 1st couple of weeks. Wasn't impressed with it enough to pay the added cost. So I am doing without for now.

His post sounded like they had switched back to the old one. If they have, I didn't get mine. We'll see what happens with Sunday's paper.

[Larry OKC]

Yep. A big reason they are going out of business. Same for newspapers. Why subsribe to the Oklahoman when I can get the content online for FREE?

Or why pay to go to the Movies, when you can watch it at home for free?

Or buy a book, when you can go to the library?