... is that in becoming these giant, sprawling, megastores with comfy chairs, Starbucks Cafes, and welcoming staff they're often now treated as libraries by the customers; someplace to sit and read. In a setting like that, it's no wonder magazine sales are down: there's no grumpy old lady getting cranky or signs on the racks saying "No Reading Allowed!" anymore and folks just loiter. This attitude has spread to the books as well with just as many people sitting around the stacks as there are down by the mag racks.
You honestly have to wonder how many people are there to buy vs read sometimes. Which then makes you wonder how much of a loss leader that is and how long they can continue to support it now that everyone online has stomped over their turf, claimed huge sections of it, and run off entirely with the DVD and Music sales they were supplementing with.