Books-a-Million has an "ambitious" store remodeling program planned for the current fiscal year, company chairman Clyde Anderson wrote to shareholders in the retailer's annual report. The new look "is focused on books first," Anderson wrote, and is designed to showcase BAM's expanded title selection. Last year, BAM began introducing a new layout and product mix that added more book titles while removing music from its stores. The retailer has budgeted about $18.3 million for renovations, new store openings and improvements in its management information systems. The company, which spent $11.7 million last year on similar projects, plans major renovations to about 20 superstores and upgrades to as many as 60 other outlets.
In a brief review of 2001, BAM reported that following September 11, books related to world events, terrorism and Muslim culture became bestsellers, while the entertainment category rebounded quickly, driven by the sales of movie tie-ins to such films as The Lord of the Rings and A Beautiful Mind. Children's books sold well throughout the year, and BAM added "thousands" of titles to take advantage of that trend. During the year, the company purchased product from more than 500 vendors.
BAM's wholesale unit, American Wholesale Book Company, "saw substantial efficiency improvements" in the year, while sales increased at Booksamillion.com and margins improved. BAM has never broken out results for its online operation, but its investment in the unit is likely a major factor in why the retailer's profit margin was only 0.9% last year.
