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.
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