Indigo targets global market in "fundamental transformation" Heather Reisman has a vision to take Indigo Books & Music Inc. global. The founder of Indigo plans to do it partly online but also in stores outside of Canada, although she has not mapped out the details of the physical expansion and it is still probably a couple of years away. Booksellers such as Indigo are being forced to reinvent their business as digital trends squeeze their traditional sales and prompt them to turn to new, higher-margin areas of growth. "Our intention is that the new Indigo will be a global company, " Ms. Reisman, Indigo's chief executive officer, told the annual meeting at the posh offices of law firm Torys LLP. We are in the midst of a fundamental transformation. Ms. Reisman has been on a multiyear journey to re-imagine Indigo into the world's first "creatives" department store - an omni-channel, multicategory retailer that is branching out into home goods, toys, children's clothing and now even Apple tech shops, with a slimming although still substantial book offering. The first of the Apple boutiques opened recently in Toronto and 40 are planned in the coming year within the retailer's superstores, carrying such items as iPads and Apple TV. To continue to navigate the changing book retailing landscape, Ms. Reisman will start planning an international push, which could take the form of acquisitions or some other way of moving outside of Canada's borders to bolster business. While Ms. Reisman hasn't rested on her laurels, she still has a way to go to improve the retailer's financial performance. Last year, same-store sales at outlets open a year or more - a key retail measure - dropped 4.6 per cent at the flagship superstores and 2.4 per cent at smaller stores. Still, there are signs that the harsh effects of the digital revolution may be beginning to abate. Digital reading now makes up about 20 per cent of the industry's sales as well as Indigo's sales, but the rate of growth of those sales are slowing, she said. What is "important and instructive" is that the the rate of growth of e-reading "is now slowing quite meaningfully," she said. Nobody can predict exactly how this will go ... But the current and short-future indication is that the rate of change is really slowing quite dramatically. She said Indigo's other "headwind" is rising competition from large generalist retailers, including U.S.-based discount giants Wal-Mart Canada Corp., Costco Canada and now the recently launched Target Corp. All of them are expanding in this country, continuing to steal sales from incumbents. It will be another 18 to 24 months before Indigo can reap the full benefits of its transformational efforts and investments, she said. Early indications are trending very much in the right direction. In 2013, profit margins improved 2.2 per cent, she said. Non-book sales of items such as pillows and picture frames now represent about 22 per cent of overall sales at Indigo, compared with roughly 12 per cent five years earlier, she told reporters. Those general merchandise sales are "gaining momentum literally every month." The company has its own design team producing private-label items just for its stores. To help in the transformation, Ms. Reisman is rolling out new store formats with separate shops for items such as baby goods, children's goods, paper items and tech items, including new Apple sections. The first Apple shop opened at the Queensway superstore in Toronto, and 39 more will roll out in fiscal 2014, she said. Indigo also plans a push on home and office goods under the Poppin brand. She did not elaborate on her plans to take Indigo outside of Canada, but said the international initiative could come in two years. When asked later about a possible takeover of a book selling rival such as U.S. giant Barnes & Noble, she said: "We have no plans for acquisition right now." Barnes & Noble reported on Tuesday that its fourth-quarter loss more than doubled to $118.6-million (U.S.) as sales of its Nook e-books and devices continue to drop. Indigo in its latest quarter ended March 30 reported an $8.2-million loss compared with a profit of $125-million a year earlier when the retailer sold its interest in e-reader Kobo Inc. In 2012, e-book sales represented 15 per cent of the overall Canadian book market, according to industry group BookNet Canada.