As promised, Borders announces website plans
As announced earlier this month, Borders announced its plan and timeline for its on proprietary e-commerce website. The bottom line for this is that it is not enough and not fast enough. I believe that with no mention of a third party marketplace, a la Amazon, Broders.com is destine for below industry average growth, if not stagnation, for this new venture. According to the larger press release that laid out the company’s broader goals, here is the future for Borders Online:
“In order to drive significant business improvements, enable technology deployment and cross-channel experiences, Borders will also develop its own Borders.com e-commerce Web site. The new proprietary Web site, which has been under development since Fall 2006, will roll out in early 2008. It will allow Borders to extend successful in-store programs like Borders Rewards to the Web and give customers a live, e-commerce solution using existing in-store Borders Search computer stations when they want to special-order items. In addition, the existence of the new Borders.com will also allow the company to enable key partnerships that will build incremental revenues and margins and facilitate other technology and cross-channel opportunities that benefit Borders customers.
As part of the development of Borders.com, the company is consolidating its Web properties into a single infrastructure. This will facilitate a seamless cross-channel experience that will integrate the in-store and online experiences.
The addition of new “Digital Centers” in Borders stores will enable customers to learn about, interact with, and purchase new digital products — such as audio books, e-books, MP3 players — and services such as downloading and personal publishing that complement the Borders brand. The company is in the process of exploring several potential arrangements for key partnerships with respect to its digital offerings. The digital services can be made available both in-store and online as a result of the Web initiative.
“We need to reinvent our business to exploit the rapid changes taking place in how consumers access information and entertainment,” Jones said. “Our ultimate goal is to make Borders a vital community gathering place where people come together to see, touch, interact, and learn — online and in- store.”
Jones concluded, “I am confident that by focusing on the transformation of the domestic superstore business — through improvements in merchandising and marketing, consistent execution, technology, innovation, and partnerships we believe in — we can return Borders Group to profitable growth and produce solid returns for our shareholders. Many of the steps we have outlined today are already underway, and we look forward to providing an update on our progress in May when we announce our results for the first quarter.”
