Books-A-Million will open eight to 10 stores in the current year, relocate or remodel five to 10 and close one or two outlets, the company disclosed in its recent annual report. BAM's plan for 2007 is slightly more aggressive than last year when the retailer opened nine stores, relocated two and closed eight, finishing the year with 206 outlets. Like its larger competitors, BAM has been steadily phasing out its smaller stores to concentrate on its superstores. The company operated 27 traditional stores last year, down from 32 in 2005; in 2002 BAM had 44 traditional stores. The company had a net gain of six superstores in 2006, finishing the year with 179; in 2002 it had 163 superstores. The nine new stores BAM opened in 2006 added revenue of $12.6 million, while the eight stores it shut had sales of $3.9 million. Earlier this year, BAM reported total revenue of $520 million, a 3.3% increase over 2005.

In a review of 2006, BAM reported that comparable-store sales of books and gifts were primarily flat with the previous year. In the book segment, sales were up in fiction, social sciences (led by TheInnocent Man), pets, cooking, teen reading, inspirational and adventure books. Sales were lower in the children's segment, which enjoyed large gains in 2005 due to the strong demand for Harry Potter and the Half-Blood Prince and The Chronicles of Narnia.

Some sidelines businesses did not fare as well as books. Cafe and magazine sales were down, with BAM explaining that the cafe business "is increasingly competitive with the saturation of the market from new competitor store openings." Magazine sales have been hurt due to more offerings from grocery and convenience stores.

During 2006, BAM said it spent $3.6 million on advertising, approximately the same amount it spent in 2005. The company received $1.4 million in "vendor reimbursements" in the year.