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Barnes & Noble Goes for Borders 'Kill Shot' With Groupon Coupon Date: 2/7/2011 |
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Barnes & Noble, the nation?s largest chain book retailer, is partnering with the fast-growing e-coupon service Groupon to offer a coupon for $20 worth of books, toys, or games for $10, which basically gives customers a 50% discount on any $20 purchase including items that are already on sale or discounted. Industry analyst Seeking Alpha sees Barnes & Noble?s move as a direct attack on its financially-strapped rival chain, the Borders Group, which is teetering on the edge of bankruptcy (see ?Borders Finalizing Restructuring?). Since Barnes & Noble has to give a portion of the $10 coupon cost to Groupon, this is indeed an expensive ploy to drive customers into B& N stores and grab market share while the competition is suffering supply chain hiccups because of its inability to pay its bills on time (see ?Diamond Book Puts Borders on Hold?). It?s hard not to see B&N?s coupon maneuver as anything but a no-holds-barred, kick-em-while-they?re-down attempt to finish off a wounded competitor. Meanwhile on Friday the New York Stock Exchange notified Borders that its stock could be delisted if it continues to trade under a dollar. Borders stock was trading at just over 37 cents during mid-afternoon trading on Monday. The last time the Borders Group Stock was over a dollar was on January 14th. |
| Source: ICv2 |
