The sale of nonbook items rose at Books-A-Million in 2014, compared to 2013, as the retailer continued to diversify its inventory mix in response to a decline in print books, the company reported in its 10-K filing with the Securities & Exchange Commission. The fastest-selling category last year was general merchandise, which accounted for 15.2% of total BAM revenue, or about $71 million. Previously, BAM reported that total sales rose 0.8%, to $474 million.
The book and magazine category accounted for 69.2% of revenue last year (approximately $328), down from 70.5% ($331 million) in the prior year. The decline in the category was attributed mainly to fewer magazine sales. Sales of media—music, video, software—had its share of revenue rise by one percentage point in the year, to 4.5%. Sales of e-books, e-readers, and accessories, however, accounted for only 1.0% of revenue, down from 1.9% in 2013.
The decline in sales of e-reader devices offset gains in sales of e-books and print books and caused sales through BAM’s e-commerce division to fall 7.2% in 2014, to $21.7 million, from $23.4 million in 2013. Sales through BAM’s retail operation rose 1.1%, to $465.6 million. Revenue derived from its real estate development and management business increased about 58%, to $3 million. BAM owns and operates shopping centers in four locations.
As of Jan. 31, 2015, BAM operated 196 superstores and 60 traditional stores, and it also owned 25 Yogurt Mountain locations, 14 of which operate in BAM superstores. The report also noted that five vendors accounted for 49.1% of BAM’s merchandise purchases last year.
Books-A-Million Operating Performance, 2013 v. 2014
($ in millions)
|Real Estate Dev.||$1.9||$3.0||57.9%|
|Number of Stores||256||257||0.4%|