NEW YORK ( TheStreet) -- Barnes & Noble ( BKS), realizing e-readers can't only compete on price, is taking yet another step to promote its Nook.The book retailer is building a store within its store to house the Nook. The 1,000-square-foot boutique will have samples of the device, demonstration tables, video screens and have employees on hand who will give customers advice and operating instructions.
This comes after rival Amazon ( AMZN) announced yesterday that its newest Wi-Fi only Kindle, will sell for just $139. Building Nook-centric boutiques within its stores gives Barnes & Noble an advantage over Amazon, allowing shoppers to actually test out the device before purchasing it. Amazon does sell the Kindle in Target ( TGT) stores, but the personalized service Barnes & Noble is offering may be worth the few bucks. To make room for these shops, Barnes & Noble plans to eliminate some of its music merchandise, and arrange books more efficiently, the New York Times reported. It will not decrease the number of physical books on its shelves. AAPL) iPad, which serves as an e-reader, among a host of other functions. Barnes & Noble ignited the price war, cutting the Nook to $199 from $259. Only hours later, Amazon responded by slashing the price of the Kindle to $189 from $259. Now Amazon said it will also offer a Wi-Fi Kindle for $139, making it the lowest priced e-reader among big brands. Barnes & Noble also sells a Nook without 3G and Wi-Fi for $149. -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.