Frequently Asked Questions

Q:  Why develop a new concept store?

A:  Our business is a highly competitive one with books, music and movies available to consumers through an ever-expanding set of channels including online, digital, and a host of bricks-and-mortar options ranging from the discount store to the traditional bookstore. Within this environment, it is critical to differentiate your stores from the competition and to define your “reason for being” as a retailer. That’s why our stated mission at Borders goes beyond simply being a seller of books, music and movies and focuses on Borders as a headquarters for knowledge and entertainment. With this mission to guide us, we developed a breakthrough retail concept that incorporates digital and internet features to provide a uniquely satisfying and interactive customer experience.

Q:  What are the differences between the new concept store and existing Borders stores?

A:  We’ve stayed true to what our customers have always loved about Borders--deep and intelligent selection, knowledgeable staff, and a comfortable, welcoming atmosphere. Yet, we’ve brought a fresh look as well as an exciting new dimension to the store with a Digital Center where customers can do everything from mix and make their own CDs, download books and music, publish their own books, explore their family history, and create photo books—all without being computer experts because we have dedicated, trained staff there to help every step of the way.  In addition, we’ve put an strong focus on popular categories—including Travel, Cooking, Wellness, Graphic Novels and Children’s—by making them true Destinations within the store where customers can take advantage of vast selection, special kiosks with recommendations from our expert buyers, large flat-panel LCD screens featuring unique content, and again, dedicated staff who are experts in these subjects.  It’s a different experience inside and out.

Q: What is the square footage of the Ann Arbor concept store?

A: 28,900 square feet.

Q:   Is the store footprint about the same as existing stores or is this a much bigger store model?

A:  It is basically consistent—at 28,900-square-feet, the Ann Arbor store is a bit bigger than the average Borders store, which is about 25,000 square feet.  Overall, the concept store is in-line with the current store footprint—we were careful not to design something that could not ultimately be implemented in all of our stores across the country to some extent, so we stayed with the same basic footprint.

Q:  How about inventory—are some sections bigger/smaller in the concept store than they are in the average existing store?

A:  Of course, the emphasis we’ve given to the Destinations within the store have somewhat increased their size within the space (Travel, Cooking, Wellness, Graphic Novels, Children’s) and we have less square footage devoted to music as we’ve invested in technology that delivers music in different ways beyond the traditional CD.  Overall, though, we’ve maintained our outstanding selection in all key categories and we think customers will continue to find Borders a great place to explore.

Q:  How many books, music CDs and movies are carried in the concept store?

A:  Over 170,000 books, CDs and DVDs are carried in the store.

Q:  With your mission to be a headquarters for knowledge and entertainment and by embracing technology in this concept store, would you say Borders is still a book store at heart?

A:  Absolutely!  Books remain the core of our business and we are not moving away from a focus on books. What we have done is bring in other elements to the shopping experience—digital and experiential elements that we believe our customers will embrace along with books.

Q: How many people does the Ann Arbor store employ?

A:  Over 75.

Q.  How many concept stores will you open nationwide this year?

A:  Borders will open a total of 14 concept stores nationwide in 2008:

• Las Vegas, NV – Las Vegas Town Square – Late March/Early April
• Panama City Beach, FL – Pier Park – Early May
• National City, CA (San Diego) – Westfield Shoppingtown Plaza Bonita – Early May
• Alameda, CA (San Francisco/Oakland) – Alameda Town Center – Early May
• Noblesville, IN (Indianapolis) – Hamilton Town Center – Early May
• Southbury, CT (Hartford/New Haven)– Southbury Plaza – Early May
• Mira Loma, CA (Los Angeles) – Eastvale Gateway Mall – Early May
• Park Meadows, CO (Denver) (store relocation) – Park Meadows Mall – Mid May
• Wareham, MA (Boston) – Wareham Crossing – Mid June
• Baton Rouge, LA – Mall of Louisiana – Late July
• Allen, TX – Market Street (Dallas) – Watters Creek at Montgomery Farms – Late July
• Tukwila, WA (Seattle) (store relocation) – Westfield Southcenter Mall – Late July
• New Orleans, LA – Freestanding – Garden District (St. Charles Ave. & Louisiana Ave.) – Early October

Q:  Compared to one of your existing stores, how much more investment by the company is required to open a concept store?

A:  Of course, with the new features and benefits of the concept store, a somewhat higher investment is required.  It’s too early to share specifics on that because at this early point in the process, the development costs are being applied to a limited number of new stores and not spread out over a larger quantity of stores.  We will have a better feel for that as we open more stores and can apply the development costs across a wider store base. I cannot provide specifics on cost today.

Q:  What does Borders expect to see in terms of sales lift in these stores vs. existing stores?

A:  We expect that the concept store model will be more productive in terms of sales and profit, but we do not disclose store-specific sales projections.  Once we get stores open and can experience results, we’ll have more visibility on results to develop a specific expectation. This new concept remains to be proven and we’ll be monitoring these first stores carefully.

Q:  At what point in time will you have a firm grip on the results of this store to make a statement on how these stores actually perform (sales and profit) vs. existing stores?

A:  By the end of the fourth quarter 2008, we will have opened 14 concept stores and we will have experienced a holiday season—which is our most critical sales period—with them in operation. So, by then, we’ll have visibility regarding what these stores can produce.

Q:  If successful in 2008, how fast can you roll out to the rest of the chain/open more locations?

A:  We would like to take the most successful elements of the concept store and begin retrofitting existing stores as soon as possible. As far as opening more locations, we first must evaluate the overall success of the initial stores.

Q:  How long was the concept store model in development?

A:  About 18 months.  When George Jones arrived as CEO in July 2006, he quickly recognized the need to develop a concept store prototype that would differentiate Borders from the competition and lead to better performance within a competitive category of retail. The company developed the new model and spent much of 2007 piloting various elements of it before implementation in the concept store.

Q: Why did you pick Ann Arbor for the first concept store?

A:  Ann Arbor is the home of our corporate headquarters and is where the first Borders store was opened in 1971 by Tom and Louis Borders, so there is much company pride here and many people interested in seeing Borders succeed going forward. From a practical standpoint, it is also valuable to have the development going on just minutes away from our headquarters where executive leaders can be involved in seeing the vision through and may follow the development step-by-step while also providing direct oversight. 

Q: Who designed the store?

A: Borders worked with JGA, one of the nation’s leading retail design, brand strategy and architectural firms, led by Chairman Ken Nisch, AIA. The firm has achieved success creating innovative and entertaining retail environments for a diverse roster of clients and their projects have been recognized by numerous design competitions and leading international publications, among them: The New York Times, Chain Store Age, Visual Merchandising + Store Design, Display & Design Ideas, Contract, Interiors and Sources and Women’s Wear Daily.

In addition to JGA’s involvement, the Borders design team was instrumental in guiding the overall look and feel of the store and many of the key elements—including all of the graphics and signage seen throughout the store.  The team also played a key role in determining the overall layout and flow of the store to generate customer interest and maximize merchandising opportunities.

Q:  Will all the new concept stores duplicate the Ann Arbor concept store completely?

A:  For the most part, yes.  Each store location is somewhat different physically so there will be differences, yet, we will deliver a consistent concept store experience overall by maintaining the same general look and feel, by focusing on Destinations within the store and by including a Digital Center, etc.  While the concept stores will not be identical, they will all deliver the unique experiences you see in Ann Arbor.  Exceptions would be the Community Room, which we have in place in Ann Arbor, but not necessarily in all concept stores, and Long Pen, which we are piloting in Ann Arbor for potential roll-out to additional stores.

Q:  Will you be remodeling all of your stores to meet this Ann Arbor model?

A:  Not right away, but we will be bringing the most successful elements of this concept store (once the base of stores is up and running) to existing stores as appropriate.

Q:  Why did you select Travel, Cooking, Wellness, Graphic Novels and Children’s for your Destinations?

A:  Borders is already recognized as a leader in these categories and they do very well for us in terms of sales historically because they align with our customer base well.  Still, we believe there is more growth possible within these categories by focusing on them as Destinations within our stores—offering a depth of titles, unique content on screens within the section, kiosks with expert buyer recommendations and partnerships with other companies or organizations that can add even more to the shopping experience.  We are putting a stake in the ground with these Destinations and letting everyone know that Borders is THE place to come to shop for them.  It’s another way we differentiate from the competition.

Q: Why a Digital Center?

A: Borders embraces technology and the role it can play in adding richness to the shopping experience.  The products we sell are moving or have moved to digital formats and we know that to stay current and relevant to customers, we must participate in these categories as they evolve rather than ignoring or hiding from the technology that is reshaping them. We also know that not everyone—especially within our customer demographic (a mature, affluent, educated consumer that tends to be female)—is completely comfortable with technology. So, we’ve designed a Digital Center where all kinds of products and services—including downloading, mixing and making CDs, exploring your family history, printing and creating photo projects, and much more—can be done in one friendly place.  And, we have dedicated and trained staff there to help customers achieve what they want to achieve.  We strongly believe that there is a market to provide these types of services and products in a comfortable environment and our pilot of the digital center in key markets prior to the launch of the concept store showed that customers really embraced this concept.

Q:  What have you done within the new concept store with respect to the environment?  Is the store green?

A:  The Borders’ Ann Arbor concept store contains a number of environmentally friendly elements.

Lighting

• Energy Efficient Light Bulbs. Borders only uses Phillips light bulbs, which have the lowest Mercury content in the industry. The company has minimized its use of incandescent bulbs to less than 1 percent of its total lighting and has changed store design to incorporate compact fluorescents.
• Recycling. Borders works with its waste management provider to recycle stripped mass market and magazine returns, and is looking at recycling the material for secondary uses.
• Skylights. The concept store has three 8’ x 8’ skylights enabling Borders to harvest the daylight and dim the existing lighting thus reducing energy usage. Borders also plans ultimately to harvest the daylight from the front windows.
• Energy Management System. Borders has installed an advanced Energy Management System to control the lighting and HVAC equipment. Now the company can meet the demands of our customers while maintaining an energy- efficient environment.

Health & Safety

• “Touch Less Restroom.” Borders has installed restrooms with “touch less” features including automatic doors, faucets, and fixtures.
• Low-Flo Toilets. The toilets in the concept store bathrooms feature water savers on flush valves.

Maintenance

• LEED Certified Cleaning Agent. Borders is using a peroxide-based cleaning formula —Alpha HP.  Alpha HP is a green seal LEED certified product.  This single formula is the only cleaning agent used in this or any Borders Superstore.

Q: In the Ann Arbor store, did you use local designers/contractors/partners?

A:  Absolutely. Following is a list of the local companies Borders worked with to develop and execute the new Ann Arbor concept store:

Local Suppliers and Subcontractors

Supplies and services from the following Michigan companies were used in the design and construction of the Borders concept store in Ann Arbor, Mich. 

Company	Location
JGA (design firm)	Southfield, Mich.
URS (architect)	Southfield, Mich.
Ann Arbor Plastics	Ann Arbor, Mich.
Advance Print & Graphics	Ann Arbor, Mich.
Foto 1	Ann Arbor, Mich.
Shaw & Slavsky	Dearborn, Mich.
Steven Frank Studio	Clinton Township, Mich.
Illuminating Concepts	Farmington Hills, Mich.
Kendcom	Whitmore Lake, Mich.
Pro Motion	Wixom, Mich.
Intercity Neon	Warren, Mich.
Speedshelf	Southfield, Mich.
Banks'	Troy, Mich.
Aven Tools	Ann Arbor, Mich.
Premier Toshiba	Troy, Mich.
Cotterman	Croswell, Mich.
Daltile	Farmington, Mich.
Fredon	Jackson, Mich.

      

The following subcontractors were employed for the project:

Company	Location
Action Asphalt & Concrete	Pinckney, Mich.
Ann Arbor Contracting	Ann Arbor, Mich.
Bloom Roofing Systems, Inc.	Ann Arbor, Mich.
Carpenters Vineyard Construction	Ann Arbor, Mich.
DS Builders Contractors, Inc.	Milan, Mich.
Ann Arbor Fire Protection	Ann Arbor, Mich.
Action Demolition & Contractors	Taylor, Mich.
Held & Held	Tipton, Mich.
Hess Glass Co.	Detroit, Mich.
McLennan Landscaping	Manchester, Mich.
Schwartz Plumbing, Inc.	Rochester Hills, Mich.
Peter Birchmeier Masonry Construction	Gregory, Mich.
Serman’s Painting Specialists	Livonia, Mich.
Spear’s Fire & Safety Services	Ann Arbor, Mich.
Aristeo Construction	Livonia, Mich.
Michigan Metal Walls, Inc.	Wyandotte, Mich.

      

Q:  Will you have any formal customer surveys/research/tracking to get an understanding beyond sales results as to how customers feel about the concept store?

A:  Yes. We are partnering with Gongos Research and conducting a mix of in-store quantitative intercepts and qualitative shop-alongs.  We will also be tapping into our store employees for continuous feedback. 

Q:  When will you launch your new Web site?

A:  We have not announced a specific date, but as we have said, it will be within this first fiscal quarter.

Q:  Will people be able to shop online in the store once the site is up and running?

A:  Yes…if an item is not in-store or in a neighboring store and the customer wants to buy it online, they will be able to do on our kiosks once the new e-commerce site is up.  In addition, through our cross channel strategy, customers will be able to reserve items online to pick up in-store, and they can create a wish list online and come in the store to view the wish list, among other advantages of integrating both. 

Q:  You have Seattle’s Best Coffee cafes and Paperchase shops in the concept store…those must work well in your existing stores?

A:  Absolutely.  Our cafe business is doing well now that we’ve fully converted to Seattle’s Best and the Paperchase business is solid too—still, we hope all categories will lift within the concept store due to the synergies created and the overall draw of the new store. Paperchase offers a wide range of innovative items including gift wrap, greeting cards, photo frames, tote bags, journals and many others, all in the latest styles and designs direct from London.

The Seattle’s Best Coffee cafes at Borders stores serve their full line of Seattle’s Best Coffee premium coffee and non-coffee beverages, including lattes, mochas and JavaKula™, Seattle’s Best Coffee’s signature blended beverage line. In addition, the cafes offer a fresh food menu, featuring Ovensong™ sandwiches and pastries and bakery items, as well as warm and cold sandwiches. The cafes also feature a wide selection of Seattle’s Best Coffee merchandise and a variety of whole bean coffees. At the Ann Arbor concept store, there is a new outdoor seating area adjacent to the interior cafe for customers to enjoy in warm weather.

Q:  There is a community room in the Ann Arbor store, what will it be used for?

A:  A host of free in-store events including author readings/signings, music performances, topical talks, demonstrations and events that the whole family will enjoy in this special space.  The Community Room features a pull-down stage that can be used for performances or easily folded away when additional space is needed for events.

Q:  What is LongPen?

A:  Borders is the first retailer in the nation to feature the revolutionary LongPen^™, the world’s first real-time pen-and-ink long-distance autographing device.  LongPen operates over the Internet using video conferencing, making it possible to host a book discussion and signing with an author, as well as performers and celebrities who are not physically present in the store.  Piloted initially only in Borders’ Ann Arbor concept store for potential roll-out to other stores, LongPen allows Borders to greatly expand its offering of author events and performances at the store. LongPen was first conceptualized by internationally acclaimed author Margaret Atwood.

Q:  Who designed the mural in the children’s department?

A:  Award winning Australian author and artist Colin Thompson was commissioned by Borders to design the mural. Thompson has written and illustrated over 50 children’s books and was selected by Borders for his ability to draw intricate and vibrantly colored pictures that delight children and adults alike.  The mural in the Children’s Destination is 7’ x 90’ and features several three-dimensional areas.