Barnes & Noble estimated in a filing that the 714-store college business is worth $774 million dollars, describing its untapped potential for growth given that 53% of college campuses still own their own stores. Barnes & Noble College is the second largest campus bookstore chain after Follett which has 940 campus stores. Barnes & Noble College said in its regulatory filing that it will try to grow through acquisitions or mergers and seek to raise capital and form strategic alliances.
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Amazon is setting its sights on the lucrative college bookstore market
Amazon is matriculating.
The e-commerce giant has inked deals with three major universities to run websites selling all sorts of college students’ delectables, including textbooks, college-themed apparel and ramen noodles. http://time.com/3692101/amazon-college/
Thank god for Accenture otherwise we would still be having shipping issues.
A slap in the face of the students that didn’t get their books. The unwritten message was you poor college students can only afford ramen noodles so here’s $4.00 worth of ramen noodles to make you feel like we’ve apologized for not delivering our ridiculously expensive text books. The cost of shipping was more than the ramen noodles were worth. Another feather in the cap for senior management of Follett. What were they thinking? Of course when it went over like a lead balloon, the person that thought it up was fired. Senior management who o.k.ed the crazy idea took no responsibility. The buck NEVER stops there.
Not sure how anyone eats ramen noodles, those things are way too crunchy.
That sounds like a pretty sincere apology. I think the issue was the Aurora warehouse fiasco that Accenture straightened out for internal IT.
Massive failure of filling SKYO orders lead to sending upset customers ramen noodles as a sincere apology from Follett
Follett used to be so far ahead of the game but B&N WILL overtake them. Follett is old school in thought (even with "digital queen" Mary Lee (she isn't)). Follett doesn't know how to innovate the market place anymore. This is evidenced in their efforts to control students and educational facilities like they do employees. Follett will fall. It has happened to bigger and better.
I don't remember that fiasco, please share.
Ramen noodles! Ha ha ha!!!! Remember that fiasco??
Chegg is focusing on the future hence the reason the company wants to "control the student relationship and control the catalog, and Ingram controls the capital that it spends on it....Chegg has no interest in selling ramen noodles". Not to mention "a new rival of course management software giant Blackboard, announced last week that it had raised another $40 million for it's application"
my bias stems from the fact that I personally dealt with Lenny Riggio for years. No bias, just facts my friend. Although rents may be a factor, they are just that, a factor. Many decisions take into account the reputation of the company, the "feel" of its' management team and the stability of the company. Historically, many institutions when asked why they chose B&N, their answer is that they felt more comfortable with the brand name/recognition that came with B&N. No bias just historical facts my friend. If you had to choose between Lenny or Mary Lee to lead you, who would you opt for?
Don't let your bias get in the way. Follett management goes head to head with BN and the schools select based on rent paid. The article even said that stores trade back and forth and the count stays the same. As long ss you have two major bidders rents continue to escalate. You buy to eliminate the escalation of rent - the single largest expense for these companies.
Congrats to the old SKYO team. When your competitors start leaving the market, they realize they cannot complete. Mission Accomplished.
Lenny on top. Lenny on top.
Barnes = quality, Follett = quantity
everyone in the industry is aware of the "downward spiral" that Follett has been put in by this management team.B&N is way too smart/shrewd to waste good money on business that they can pick up for nothing after Follett loses it. If you know anything about Lenny Riggio, you know he can destroy Follett anytime he chooses. Here's an interesting scenario. Have Lenny go face to face, one on one at a presentation with Mary Lee and see who comes away on top?
Wow. This is big news. Barnes and Follett withstood the onslaught of all the new text rental competitors over the past 5 years. Less competition = higher margins.
What is Follett woke up and was the only major competitor in the textbook rental space. Imagine no more reasons to discount textbooks. It could happen much sooner than later. Shares of Chegg (CHGG) are up 27% Tuesday after the company said it’s handing over most of its textbook rental business to Ingram Content Group, one of the world’s largest print material distributors. Chegg CEO Dan Rosensweig said in an interview with USA TODAY. “We could be a lot less cash intensive. This liberates us to (invest more in digital) because the future is digital.”
Chegg shares rose 27.4%, or $1.85, to end Tuesday at $8.60.
Note comment that BN is looking to grow through acquisitions. Value of BN college is 782 million. Time for the Follett family to exit this business and recoup their investment. Don't forget the rumor of BN looking to buy Follett from a month or two ago.