Every time I go in to a B&N physical store, it's packed. They're one of the few stores I'll go to just for the experience of going in there. They're relaxing. They're pleasant places to be.
Certainly, book sales face stiff online competition, but I find it hard to believe that a company with 705 physical locations that people want to be in, (plus 636 college book stores), can't find a way to make a profit even if the Nook should fail.