JP Morgan Trashes Barnes & Noble (BKS) and Borders (BGP)

Think retailers that sell old (and dying) media like books, magazines, and CDs are ripe for a comeback? JP Morgan doesn’t. The bank trashes Barnes & Noble (BKS) and Borders (BGP) today:

  • limited consumer appetite for discretionary purchases
  • lackluster slate of new books (especially compared to a very strong lineup in 2007) coupled with a more pronounced deterioration in CD sales
  • continued category encroachment on traffic-driving titles from the discount, mass, and warehouse club channels
  • consumer migration toward e-reading (e.g., Kindle)

Oh, and consumers will be too distracted by the Olympics and Presidential elections to bother buying books. Ouch.

See Also:
No, Amazon (AMZN) Shouldn’t Buy Borders (BGP). But An Amazon Retail Presence Makes Sense (AMZN, BGP)
Desperate Borders (BGP) Severs Amazon Deal in Futile Attempt To Go It Alone
Barnes & Noble (BKS) Bid For Borders (BGP) Makes Sense

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