Indigo Books & Music reported that sales for the second quarter ended September 27 slipped 0.6%, to C$170.1 million ($129.2 million). Sales were hurt by Indigo's decision to close the McGill University Bookstore at the end of June, which dropped campus sales by C$3.1 million in the quarter. Same-store sales at Indigo's superstores rose 1.2%, while comparable-store sales at the mall outlets inched up 0.1%. The company's net loss for the period stayed at C$7.6 million.

Indigo's online business made a contribution to growth in the quarter. Sales increased 25.5%, to C$10.3 million. The company attributed the improvement to increased title availability and the growing use of kiosks at Indigo stores. The company, which is facing competition from, said it will continue to support its online business with "a strong marketing program and a focus on matching competition on pricing and shipping initiatives."

Sales for the first half of fiscal 2004 rose 2.1%, to C$334.3 million, and the loss was reduced to C$19.1 million from C$20.8 million. The retailer is currently installing SAP to run its supply chain and expects the installation to be completed by next April.