This seems like a sensible idea; or rather, trying something different seems like a sensible idea: Barnes and Noble is opening a smaller store.
Maybe they’re going to try to capture more of a boutique feel at some stores. Maybe that’ll work.
If it were me, I’d probably try something like that. Maybe open small bookstores that cater to particular genres, add a bigger coffeeshop and free wi-fi, plenty of comfortable furniture … what else? How about welcoming dogs and adding a patio for people to sit with their dogs while they have coffee and read.