Borders Take Control Of Its Online Presence, Thinks mp3s

BORDERS GROUP INC has ended its online relationship with AMAZON.COM to launch its own website, which will enable it to sell mp3s of music on its own, REUTERS reported.

"We're literally starting with a blank page," BORDERS EVP/Merchandising and Marketing ROB GRUEN said.

The move by the nation's #2 bookseller (behind BARNES & NOBLE) is part of a larger turnaround plan, which it began last year. It is also closing underperforming WALDENBOOKS stores, weighing options for its international units, and refocusing on its core U.S. store operations.

Part of that refocus could well be the sale of mp3s. "We know that the customer is downloading music," GRUEN said. "We're looking at how do we incorporate that into the whole process."

Currently, BORDERS is experimenting with what it calls "mix and burn," where customers can come into its stores to develop their own CDs.

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