Annual Report Project
A Comparison of Barnes & Noble Booksellers
and The Borders Group
In 2002, Barnes & Noble Booksellers and The Borders Group were leaders in the bookseller market. To better understand the financial performance of these companies, this report will examine the operating activities and provide analysis based upon the 2002 Annual Reports and SEC 10-K filings provided by each organization.
As the leaders of the industry, Borders, Barnes & Noble, and Amazon.com produce a combined 1.1 billion dollars in annual sales. Because Amazon.com is primarily an online-based retailer and does not operate brick and mortar stores, Borders and Barnes & Noble are the largest direct competitors in this industry.
The Borders Group (BGP), headed by Gregory Josefowiz, Chairman, President, and CEO since 1999, is based in Ann Arbor, Michigan. BGP is the second largest operator of book, music and movie superstores and mall-based bookstores in the world based upon both sales and number of stores.
Operating on a fiscal year ending the last Sunday of January, the company owns Waldenbooks, a mall-based bookstore, as well as online retail space through an agreement with Amazon.com. Through these combined sales outlets, BGP maintains operations in the United States, United Kingdom, Australia, Puerto Rico, Singapore and New Zealand.
Barnes & Noble Booksellers (BKS), led by CEO Leonard Riggio is headquartered in New York City, and operates on a fiscal year ending the Saturday closest to the last day of January.
BKS is the largest operator of book, music and movie superstores in the world, and owns and operates B. Dalton Booksellers, a mall-based retail outlet. BKS also is a majority owner in GameStop, the largest videogame retailer in the world. GameStop made an IPO in 2002, and continues to grow. To compete in the...