Indigo Books and Music Inc. seems to be recovering from a string of losses. Fortunately, its second quarter earnings were boosted by both retail and e-commerce, which is a trend that looks promising, says CEO Reisman. As someone who used to frequent bookstores such as Chapters, it is disheartening for me to see Indigo face such difficulties. Although I appreciate the low prices on Amazon, it is odd to see traditional bookstores turn into gift shops. However, this move makes sense given the fierce competition within the market. I applaud Indigo for rethinking its business strategy and transforming itself to better match new demands, but it is uncertain how effective this will be in the long term.

The company’s plan to become the “world’s first cultural department store” by 2015 gives focus and direction to its operations. However, I would argue to make this aim more specific because Indigo is in a period of recovery. Looking to expand so soon after closing down several large stores seems like a rushed manoeuver with a low chance of success. In order to prevent repeating the same mistakes, Indigo should spend more time developing its online operations instead of opening new locations. With giants like Amazon breathing down its back, Indigo should focus on its strengths and diversify into other products. This will involve careful change management since the entire business model is being renewed. Now would be an optimal time to restructure some of the company’s key personnel, as fresh minds will bring new ideas to push the business to greater heights. I look forward to seeing how Indigo will perform in the future.

http://www.theglobeandmail.com/report-on-business/indigo-actively-looking-to-open-more-stores/article21455710/