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Wednesday, May 24, 2006

Borders still in the red

Yesterday, Borders Group Inc. posted a wider than expected loss of nearly $19 million. That's over 3.5 times deeper into the red than a year ago. There are some legitimate reasons for this, including the branding of Waldenbooks into "Borders Express", but I continue to wonder why Borders has not invested in an online bookselling operation (currently the store "teams" with Amazon). Borders still has strong enough name recognition to leverage itself into the online book market - which is booming. I think any consultant weighing the investment in the Walden's conversation and other strategic growth models and an online book marketplace would push the company toward the latter. (Reuters wire story).

See also: Barnes and Noble earnings