Barnes & Noble faces a number of organizational challenges in their transition to a more decentralized model. First, they’ll need to develop new training programs to ensure store managers have the merchandising expertise and local market knowledge necessary to make effective inventory decisions. In the past, these decisions were made centrally, so many managers may lack experience in this area.

Quality control and brand consistency could become more difficult to maintain across 600+ locations with varying approaches. This creates a need for oversight systems that allow autonomy while still ensuring minimum standards for brand consistency.

Supply chain complexity will likely increase as stores order different inventory mixes rather than standardized shipments. This could affect economies of scale in purchasing and distribution efficiency.

Additionally, evaluating manager performance becomes more nuanced when each store has different inventory and layout strategies, requiring more sophisticated metrics beyond simple sales comparisons. Finally, the organization must manage resistance from managers accustomed to the old system while fostering a culture that rewards innovation and local responsiveness without creating unhealthy internal competition.