Borders takes online retail operation in-house

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Borders UK and Ireland is to bring its website and online retail operations back under its own control, allowing customers to buy directly from the book retailer for the first time.

The site will end the retailer's previous arrangement with Amazon to provide the company's online retail service, where customers would be re-directed to Amazon's UK website if they wanted to buy a book from Borders online.

The move follows a change in ownership for the bookstore chain, as US parent Borders Group sold it in September to London private equity firm, Risk Capital for $40 million (£19.4 million) - although the Group retains a one-sixth stake.

David Kohn, Borders UK and Ireland commercial director said: "Developing a profitable and distinctive e-commerce site is a key business initiative for Borders UK & Ireland."

The contract to design the new site has been awarded to online communications specialist Tangent, after the company successfully worked with Borders earlier this year on implementing a web creator to launch borderslocal.co.uk - a satellite site designed to enable its 70 UK and Ireland stores to manage web pages personalised to their own areas to better engage local customers.

Tangent will use its core Taobase technology as the basis to build and extend the web-based work it has already completed for the retailer into the transactional consumer market.

Kohn added: "Tangent demonstrated a good understanding of the Borders brand and what we need to do to succeed in this highly competitive sector. We expect to launch our new site in early spring 2008."

Earlier this week, Borders Group announced fiscal third-quarter results that included widening losses, as the company recorded charges related to the sale of the UK and Ireland operations. This included a $119.4-million (£57.96-million) loss from the discontinued operations.

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