I've spent a lot of time in both B&N and Waterstones. B&N has a lot of problems Waterstones never had even ahead of bankruptcy:
- The stores are too big. 1/2 of a B&N store is tat, reference books, niche stock, a Nook display area, and other nonsense. You could cut almost all B&N stores in half and not notice as a customer.
- They place them poorly. B&N is perfect for foot traffic. But B&Ns are typically located as drive-up "out of town" shopping. Somewhere you need to go to intentionally. They need to be in malls.
- No good Nook tie-in for the stores. My SO often goes into B&N and looks at books, and then says "I'll buy it on my Nook later." They should have made an agreement with the publishers YEARS ago: When you buy a physical book, you get the Nook book included.
- The children's area is really nice, but poorly leveraged. No classes, no reading groups, no reason to come in. Stay at home parents WANT a reason to get out of the house, you offer a free reading group for small kids, the parents will buy the books after the group.
- Atmosphere in the coffee shop is bad. Waterstones feels like a nice little swanky coffee shop, somewhere you'd go and work on your novel, B&N's coffee shop feels like a generic coffee shop at the airport.
- B&Ns has no brand, and keeps making it worse. 3D printers, toys, Nooks, what is it that B&Ns is? They're all over the place, and now when you go into a B&N store you'll never know what they'll be pushing this week.
I think B&N will go under. I just don't think the management is very good, and every attempt they make to right the ship makes it worse. The whole business needs to be restructured.