Barnes and Noble is facing challenges in the form of heavy competition from Amazon.com and the Kindle digital e-reader, among others.
There is significant concern that Barnes and Noble stores will wither away slowly as more readers embrace e-books and e-readers. Traditional publishers are uneasy about the advent of the digital book expansion, fearing for their livelihood. William J. Lynch Jr., C.E.O. of Barnes and Noble says that his stores "will endure" and that the thought of digital book technology making bookstores obsolete is "nonsense."
Fox News asserts that Approximately 67 percent of libraries in the U.S. offer some e-books -- a 55 percent jump from 2 years ago, illustrating the rapidly growing digital book trend.
Barnes and Noble responded to competition with it's own e-reader: the Nook.
According to CBS, the Nook e-reader boasts more RAM and 16GB of storage - double the amount of Kindle Fire.
The device has obtained some popularity, but nowhere near that of Amazon's Kindle.
Amazon issued a statement that said, "Kindle unit sales, including both the Kindle Fire and e-reader devices, increased 177 percent over the same period last year."
Lynch has plans to improve the image of his stores, with new display space for the Nook device. He also wants to experiment with reducing the size of the stores and taking the device overseas to reach a previously untapped consumer market.
Publishers rely on Barnes and Noble to advertise their product. Having a retail space to house printed books allows for a carry-on effect on reader purchase incentives, "the display of a book contributes to selling e-books and audio books." Said David Shanks, the chief executive of the Penguin Group USA.