Ann Binkley, director of public relations for the company, tells GlobeSt.com the company plans on spending $130 million on capital expenditures each year, with 65% of that money going toward the new stores.
There has been some concern that holiday sales will be low because of economic woes and fear following the Sept. 11 terrorist attacks, and the company has been more careful with its spending, says Borders Group President and CEO Greg Josefowicz. He adds the company plans to continue to assess expenditures as events continue to unfold and their impact on the company's performance is assessed.
However, world events will not halt the company's drive, Binkley notes.
"We've said all along that we will continue to expand our domestic product. We're still on track," she says.
Within the last week, Borders has announced plans to open six new superstores in New Jersey, California, Colorado, Illinois and Maryland. The company is now looking at starting to create a smaller version of the familiar 25,000-sf store, she said. The new store would be typically 14,000 sf to 18,000 sf but each would still have books, compact discs, videos and a café, Binkley adds.
There are already some Borders stores that are 18,000 sf, but this new store is a prototype that could be installed in smaller communities, she says.
"We're looking at areas like Marquette, Mich. for this kind of store. We're looking at the amount of people around, and the location. There hasn't been any leases signed yet, I'm not sure where we'd try the first store," Binkley says.
The company's real estate department is currently looking at the new sites for the prototype stores in secondary communities, she adds.
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