Today, Explained

How Barnes & Noble survived

Dec 19, 2023

Nilay Patel, Editor-in-chief of The Verge, reveals how Barnes & Noble transformed from a struggling giant into a community hub and bright spot in retail. Brendan Ballou, author of "Plunder," discusses the dual role of private equity, highlighting both revitalization and ethical concerns in American industries. They dive into the lessons learned from failures like the Nook e-reader, emphasizing the importance of local engagement in today’s book market. The conversation uncovers the intricate dance between profit and genuine literary passion.

26:06

Episode guests

Brendan Ballou

Nilay Patel

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Episode notes

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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.

Intro

1min

The Evolution of a Bookselling Giant

2min

Barnes & Noble: Adapting to Change

10min

Passion for Literature and Misconceptions in Alzheimer's Awareness

3min

Creating Lasting Memories Through Travel Experiences

2min

The Dual Edge of Private Equity

10min

The bookseller has gone from big-box villain to company on the brink of bankruptcy to bright spot in the mostly dismal retail space. The Verge’s Nilay Patel and author Brendan Ballou explain the unlikely story of its apparent turnaround.

This episode was produced by Isabel Angell, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Patrick Boyd, and hosted by Noel King.

Transcript at vox.com/todayexplained

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