Indigo Books and Music is the largest bookseller in Canada and the business has zero debt, which is rare. In the last three months of 2017 Indigo reported they had their best financial quarter ever and generated over $433.3 million in sales, which is an 8.2% increase over the same duration in 2016.
The Canadian chain associated the sales gain to double-digit growth in its basic merchandise classification, as well as strong online sales. Total exact same store sales were up 7.9% led by a 26.4% increase of online sales with compensation store sales up 4.9% in Indigo’s superstores and 2.3% in its smaller sized format stores.Sales of books increased over in 2015’s comparable period, but the company did not state by how much.Revenue from other
sources includes café income, irewards card sales, earnings from unredeemed present cards(“present card damage”), earnings from unredeemed plum points (“plum breakage”), corporate sales, and revenue-sharing with Rakuten Kobo Inc. Earnings from other sources increased $1.8 million or 22.0% to $10.0 million for the 13-week duration ended December 30, 2017 compared with $8.2 million in the exact same duration last year as higher plum damage was partially balanced out by lower café earnings.
What is the future direction of Indigo? They are getting away from the “Chapters Book shop” name and attempting to alter all of the stores to Indigo, and they are less of a bookstore and more of a “cultural department store.” They revenerated 6 shops last year and mean on doing another 20 this year, in addition to a brand-new flagship shop opening in downtown Vancouver. The most significant news is that Indigo is broadening beyond Canada, into New Jersey sometime in the next year or 2.