The University of North Carolina at Chapel Hill, which put out an offer for bids on its UNC Student Stores early this year, has selected Barnes & Noble Education to operate the stores, whose centerpiece is the Bull's Head Bookshop, founded in 1925.
This is the second recent outsourcing of a highly regarded, long-established college store in the last month, following the University of Connecticut's decision to have Follett or Barnes & Noble manage the UConn Co-op.
Under the 10-year, $30 million agreement, which is effective July 1, all operations except the print shop and pharmacy will be managed by B&N, and all 48 employees will continue at current pay scales with B&N or the university for three years.
B&N forecasts annual payments of more than $3 million, an amount that's guaranteed the first two years. After that, after the university covers operating expenses, existing debt service of $800,000 annually and other support costs, the stores are expected to have net gains of between $1.75 and $2 million, which will be contributed to scholarships--an amount the university said is quadruple recent scholarship contributions.
The university's argument for outsourcing focused on the stores' flat sales and less-than-desired amounts for student scholarships. The university said that since 2007, the stores' revenues had declined more than 15% and been flat the past five years, leading to "inconsistent" scholarship amounts each year at a time of growing need for scholarships.
Also under the new arrangement, the Bull's Head Bookshop will move to larger space in its building, the Josephus Daniels Building, and will stock 70,000 titles, more than double its current offerings, as well as add a space for book talks and signings.
Shirley A. Ort, associate provost and director of scholarships and student aid, said, "For decades, Student Stores has been a great partner in that effort by providing a vital source of scholarships for both undergraduate and graduate students, getting us to where we are today. For that we are enormously grateful, and to the staff who have also hired our students. But this plan for Student Stores will create millions of additional dollars in need-based scholarship funds for talented and deserving students--supplemental sources that we greatly need."