Borders to downsize Waldenbooks unit, closing 200 stores

Ann Arbor, Mich. Borders Group announced it will close more of its small-format Waldenbooks stores in January as it focuses on its more profitable superstores.

The company is shuttering 200 Waldenbooks stores and cutting 1,500 jobs -- the majority of which are part-time, according to Borders -- in January to make the chain smaller and more profitable. The chain said efforts will be made to place qualified individuals in other positions within Borders Group.

Borders said the closings would leave about 130 Waldenbooks stores still in business.

The company said the closing will not affect any Borders superstores or any of its mall kiosks, including 500 Day by Day Calendar Co. spots and other mall-based stores.

Borders has been slowly closing Waldenbooks. It shut down 112 stores in fiscal 2008 and an average of about 66 stores each year between fiscal 2001 through 2007.

In an Associated Press report, Michael Norris, senior trade analyst at Simba Information, said the move is a way for Borders to focus on superstores, which make more money and cost less per square foot to operate than smaller stores.

"In a way they kind of have to do this, because Barnes & Noble is ahead of them in phasing out small-format stores," he said.

Barnes & Noble said last month it would close all of its remaining 50 B. Dalton stores by the end of January.

But Borders believes a smaller Waldenbooks segment can be profitable.

"We believe there remains an opportunity to profitably operate a much smaller Waldenbooks segment that complements our core Borders superstore business and continues to serve readers in their communities," said Borders CEO Ron Marshall in a statement.