Despite the release last week of disappointing quarterly results and the surprise dismissal of CEO Ron Boire in August, Barnes & Noble’s shareholders meeting held Wednesday morning was a tranquil affair.
No shareholders in attendance asked B&N founder and interim CEO Len Riggio about what exactly led to Boire’s ouster, or pressed for more details on how the company plans to improve results.
Riggio and CFO Allen Lindstrom largely reiterated remarks they made last week, when the first quarter financials were issued. Riggio once again said that while his and the board’s main objective is to hire a new CEO, he won’t rush the process. He promised to find a new leader who understands the nuances and complexities of bookselling. Riggio also said the misguided decision to drastically cut inventory and store floor personnel—which some insiders claim led to Boire’s firing—is currently being fixed.
While its inventory and store personnel levels are being restored, B&N still expects to cut store expenses by $25 million. It plans to do so by “attacking areas that are not sales sensitive,” Riggio said.
Five new concept stores will be opened in the fiscal year, and B&N is continuing to test different store layouts and inventory mixes, Riggio said. While books will remain the central component of B&N’s offerings, given the current retail economics, the chain, according to Riggio, “can’t make it just by selling books.”
B&N has done well selling gifts and educational toys and games, and will continue to look for the next hot area such as adult coloring books, which unexpectedly boomed last year.
Nonetheless, one of the issues in maintaining a large physical store presence is the high costs of rents, Riggio said, adding that he hopes that trend will abate. High rent was one reason B&N closed the last of its Queens, N.Y., stores, Riggio said, in response to a question about the issue. He then added that B&N is looking for a location for a new Queens outlet.
Riggio then said that the New York City-based company “would like to be in every borough.”
