• New York Times, Bloomberg, Thursday, August 12, 2010 10:37 AM

With e-books proliferating --"print patriarch" Pete Hamill is going to publish one even though he's never read one -- Barnes & Noble is adding products like educational toys and games in an attempt to lure customers to its racks, Julie Bosman reports.

B&N also will begin building 1,000-square-foot boutiques to feature its own e-reader, the Nook, in all of its outlets starting next month. "We think we've got the right strategy," say B&N CEO William Lynch. "The growth in our e-books business is about nine months ahead of our plan."

Most industry insiders seem to welcome the innovations. "If it's toys or games that brings a family into the bookstore, then I say fine," says Simon & Schuster CEO Carolyn Reidy, who reports that about 8% of her revenue currently comes from e-books. "The shift from the physical to the digital book can pick up some of the economic slack, but it can't pick up the loss that is created when you don't have the customers browsing the displays," points outs literary agent Laurence J. Kirshbaum.

Meanwhile, the wires are abuzz with word that B&N and Ron Burkle will announce an agreement to give the billionaire three board seats in exchange for an agreement to drop his lawsuit over limits to the size of his stake in the company. Burkle and his investment vehicle, Yucaipa Cos., will also support the potential sale of B&N, Bloomberg's Jeffrey McCracken reports.

Read the whole story at New York Times, Bloomberg »