Today, Explained cover image

Today, Explained

How Barnes & Noble survived

Dec 19, 2023
"Today, Explained" discusses how Barnes & Noble went from bankruptcy to success. Nilay Patel and Brendan Ballou share the bookseller's unlikely turnaround story. They explore Barnes & Noble's transformation through community engagement, changes in the company, and the impact of private equity.
26:06

Podcast summary created with Snipd AI

Quick takeaways

  • Barnes & Noble's turnaround was achieved by empowering individual bookstore teams and reviving the local bookstore experience through cost-cutting and returning decision-making power to store managers.
  • Private equity's short-term focus, heavy debt burden, and extraction of fees can have detrimental effects on businesses and employees, highlighting the need for regulatory reforms and incentives to ensure positive contributions to the economy.

Deep dives

Revival of Barnes & Noble: From Big Box Bad Guy to Rebirth

Barnes & Noble, once portrayed as the big box bad guy gobbling up the competition, faced near extinction with the rise of the internet. However, the bookstore chain is making a remarkable comeback. Under the leadership of CEO James Don, Barnes & Noble has undergone a transformation. Don, an independent bookstore owner, aims to empower individual bookstore teams and revive the local bookstore experience. By cutting costs, eliminating central purchasing functions, and returning decision-making power to store managers, Barnes & Noble has been able to regain its identity and engage with the community. With a focus on better selection and services, the chain is attracting people to its stores as "third places" to hang out, discuss books, and make purchases.

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