As you approach the Grays Lane corner along North Santa Cruz Avenue in downtown Los Gatos, you might just catch an inquisitive soul peeking into the storefront with the covered-over windows.
And last week, we caught up with a Barnes & Noble executive to find out more about what’s about to be unveiled.
“It’s a great spot for us,” said Janine Flanigan, vp of store planning and design for the chain, noting they’re targeting an Oct. 8 opening date—and expressing serious optimism for the world of words. “There’s a complete resurgence in reading.”
The corporation officially known as Barnes & Noble Education is currently a bit of a black box, as they’ve delayed their most recent earnings report due to an internal audit of financial reporting mechanisms.
“Certain information regarding the recording of cost of digital sales was brought to the attention of management in July 2025,” the company told the Securities and Exchange Commission earlier this year, adding the company “believes that these potential impacts may have resulted from the actions of a payment processing employee, who has been suspended pending the results of the Committee’s investigation.”
But at least some analysts still feel that, overall, the physical media retailer is on the right track. Henrik Alex, of Seeking Alpha, recently upgraded his rating from “hold” to “strong buy,” for example.
“However, it will require more time, improved shareholder communication, and strong execution for market participants to forgive past missteps and focus on the company’s decent near-term prospects,” he wrote.
Here at home, the controversy has been centered on the fact the corporation is moving in right down the street from where Beyond Text Bookstore recently opened.
So, was the corporate giant seeking to muscle-out a woman-owned independent shop?
“That is never our intention,” said Flanigan, pointing to how company CEO James Daunt actually owns several small book-sales storefronts, called Daunt Books, in England. “Most independent bookstores have a specialty that we don’t have.”
Flanigan says they’re aiming to achieve a similar third-place feel of the larger stores, despite the fact they’re not allowed to have a café in this location—which is also much smaller than their big-box concepts.
“Los Gatos is a bit smaller, so there are some challenges, but there’s still seating in the store,” she said. “We still welcome our customers to come in and enjoy the space.”
The news they’d be launching here came not long after it moved to close one of its two San Jose locations.
But according to Flanigan, they weren’t trying to end the chapter there exactly.
Barnes & Noble has a policy of never closing locations unless their hand is forced—such as if they’re not allowed to renew their lease, she said.
Nevertheless, these days, she continued, they are finding success with their boutique-type setups, such as in Burlingame.
“We’ve expanded our opportunities across differ square footages,” she said, noting they’re on track to open 65 stores this year.
When rolling out a location like the one in Los Gatos, they’ll typically promote a store manager from within and hire a new cast of booksellers, Flanigan added.
A recent study from the University of Florida and University College London found daily pleasure reading has been dropping by about 3% every year—though those remaining folks are doing more of it. The decline was steeper in Black communities than among white Americans.
For the big opening in Los Gatos, Flanigan says to expect a featured local author and face-painting for kids.
