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Barnes & Noble abandons Nook; Indigo welcomes the iPad

After months of speculation, Barnes & Noble announced yesterday it will no longer manufacture or sell its Nook tablets, instead focusing on a “partnership model” to produce content for other e-reading devices.

Like B&N, Indigo Books & Music is embracing its technology partners. As part of its continued evolution from bookseller to general merchandiser, the retail chain announced that, in the coming year, it will open 40 onsite Apple shops within its stores, selling iPads, iPods, and other products.

At its annual shareholders meeting on Tuesday, Indigo CEO Heather Reisman revealed the next steps in the company’s plan to become the “world’s first creatives department store.” Larger stores will be redesigned to accommodate several smaller boutiques focused on house categories, including kids’ toys and clothing, health, technology, and office supplies.

Book sales still account for 78 per cent of Indigo’s overall revenue (down 10 per cent from five years ago), with 20 per cent of that amount attributed to ebook sales.

Reisman also spoke of a possible international expansion, but says an acquisition of B&N is currently not part of the plan.