Barnes & Noble CEO Ronald Boire steps down

Dive Brief:

Barnes & Noble announced on Tuesday afternoon that CEO Ronald D. Boire is stepping down, effective immediately, after less than a year in the role.
The news came after the board of directors determined he was “not a good fit for the organization and that it was in the best interests of all parties for him to leave the Company,” according to a release.
The bookseller said it will immediately begin a search for a new CEO. Executive Chairman Leonard Riggio will postpone his already-announced retirement until a later date, the company said, with Riggio and other executives assuming Boire’s duties until they can find a replacement.

Dive Insight:

Well, that didn't last long: Ronald Boire's tenure as Barnes and Noble CEO never even reached a full year.

Boire was hired at a time when Barnes & Noble was struggling with growing e-commerce competition and declining store traffic. The Barnes & Noble stock fell 60% over the course of 2015, and the book retailer ended the year with a $39 million loss after a botched relaunch of its website halfway through the year.

His hire in September 2015 followed the retirement of Michael Klipper, a 28-year veteran of the bookseller. Boire, a retail veteran himself, previously spent a year as the acting CEO of Sears Canada before taking on the lead role at Barnes & Noble. Boire's background was primarily in merchandising, working for a number of retailers — Kmart, Brookstone, Best Buy and Toys “R” Us.

After coming on board, Boire told the New York Times in an interview the bookseller was poised to become more than a bookseller — and more of a “lifestyle” brand. Boire said he planned to expand the retailer's product assortment, including more toys, games, devices and other gifts.

“Everything we do around learning, personal growth and development fits our brand,” Boire told the Times. “There’s a lot of opportunity.”

Same-store sales began to rise in January 2016 after the retailer had beefed up its non-book offerings. In March 2016, the retailer reported that sales rose 12.5% across the categories Boire wanted to bet on — toys, games, music and small home goods.

But not everything was positive: The retailer continued to suffer from the aftermath of its botched mid-2015 relaunch of its website, with Q3 e-commerce sales falling 1.8% over the last year. The retailer has also been plagued by its faltering Nook and e-reader business: Q3 Nook sales were down 33.3% on slower sales of both devices and content.

The retailer announced in March it would close eight stores — its smallest number of closures in 15 years — as it tested new concept stores to reinvigorate its brick-and-mortar strategy. The new prototype stores were inspired by Boire's omnichannel approach to retailing: leveraging brick-and-mortar stores to drive customers to make purchases online.

"I don’t think until you’re fully connected — mobile, desktop and store — that you’re going to be providing the full experience," Boire told attendees at a conference. "That’s our goal.”

The concept stores will reportedly incorporate table-side dining service — one advantage brick-and-mortar can have over its e-commerce competition. The restaurant concepts fit well with Boire's efforts to push the book retailer into a merchandise mix that would include gifts and toys.

Now Ronald Boire won't be there to see that strategy through. Despite initial positive signs amid largely gloomy results, Barnes & Noble's board lost faith in Boire's leadership. A short statement from the company announcing his exit only said he was "not a good fit."

Following news of Boire's departure, Barnes & Noble shares, which have fallen 25% since January, stayed steady in after-hours trading.