IDG - Indigo Books & Music Inc.

[york]

Has anyone taken a look at Indigo? It is getting to a price that seems interesting. (Market Cap $57.28MM; Per Share $2.10; EV $434.12 Mil

 

 

FYI:

Below is Twitter DM I received from Indigo regarding a pricing arb on a book purchased in-store vs their online store.

I can't remember the specific book at this time, but the price uplift was ~150-175%

 

November 17, 2017

Hi,

 

Thanks for contacting us.

 

We do maintain a separate retail and online pricing philosophy to reflect the different sales environments of the two channels.

 

In-store, we have more involved service, tailored to individual shoppers. We employ passionate booklovers, and when in our stores, customers can take their time to browse and discuss books (and gift items) with our employees, and other shoppers. We try our best to maintain a diverse inventory in-store, so we can provide our customers with what they are looking for. In-store, customers also have the benefit of being able to pick up their books immediately, when they find them in one of our stores. Currently, the majority of the books we carry in our stores are priced as set by the publishers.

 

However, we still want to provide great value to our customers, so in store, we offer discounts through a variety of programs – this includes our top 100 bestsellers at up to 40% off every day, a great selection of bargain bestsellers at under $10, and many more seasonal promotions and discounts. We are also continuing to expand our electronics, gift, home and toy selection in our stores and online, and in these categories we are able to maintain similar pricing no matter how you shop with us.

 

As you are aware, there is a much wider selection of discounted books available at our website, http://indigo.ca. The self-directed nature of online shopping allows us to operate with much lower costs and we do pass the savings to our customers wherever possible.

 

We have chosen this pricing strategy to try and give our customers the widest choice in how they prefer to shop with us. If you know exactly what you want and are comfortable with shopping online you are able to pay a discounted price on more items. If you like the higher level of personal service available in our stores, and you need the book immediately, you can shop with us that way. Either way we are committed to providing a world class shopping experience for all our customers.

 

If you enjoy the in-store experience, you are more than welcome to order something online, and have it delivered to one of our stores for free.

 

Thanks so much for taking the time to provide your feedback, and please feel free to contact us if you need any additional help!

 

Best,

 

Indigo