Chapters/indigo in Canada is like that. Half the stores are gift shops for socks and blankets etc. They removed all the tables and chairs they had 20 years ago for you to read at. At least they still exist though, all 4 used bookstores (plus one chapters) near where I live have closed down
> Half the stores are gift shops for socks and blankets etc.
Yeah this annoyed me to no end, however after a few shops I realized the only reason these are even open right now is because of the high margin gift section. Check the prices on their plushies when you are there. $35 for a small rabbit! and people buy them.
Yes, you should allocate a larger share of scarce resources (in this case, floor space) to high-margin product...
... but not at the expense of the central thesis of why customers actually come to your store.
B&N was able to sell high margin gift shop items because traffic was already there as a bookstore... and there as a bookstore because they had reading areas and a coffee shop.