Borders returns to Web retailing after 7 years




By DAVID RUNK, Associated Press Writer



Borders Group IncAmazon

The move comes as Borders, which has said it may put itself up for sale, has lost market share both to online retailers and to discounters such as Wal-Mart Stores Inc. amid a difficult economic climate in the United States.

It's a long shot, analysts say, in an environment where people are spending less and Amazon rules.

"Amazon just dominates," said Fred Crawford, managing director at turnaround consultant AlixPartners who has studied consumer attitudes toward major booksellers. "Amazon is nearly unassailable."

In 2001, Borders abandoned its money-losing online business, turning it over to Amazon. Under that arrangement, Borders took shoppers to a site partnered with Amazon, while a Web site for its stores allowed shoppers to check inventories and reserve items.

Seattle-based Amazon says it doesn't comment on the strategies of other companies and didn't have any comment on the end of the Borders partnership.

Tuesday's launch of Borders' new Web site comes more than two months after the Ann Arbor-based company announced it may put itself up for sale. Just last week, Barnes & Noble Inc. confirmed it put together a team to study the feasibility of a deal.

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