Borders has unveiled a ground-breaking new concept store in the US that combines traditional bricks-and-mortar retailing with the latest in digital technology.

The bookseller wants the 28,900 sq ft store, located at its home town of Ann Arbor, in Michigan, to fulfil its strategy to become a hub for knowledge and entertainment.

The store includes a digital centre where customers can create their own CDs, download digital books and music, look up their family history, create photo albums and even publish their own novels.

Borders is the latest entertainment retailer to evolve its offer in the face of growing competition from e-tailers and the development of cutting-edge products such as Amazon’s Kindle and Sony’s PRS-500 digital book readers.

Borders hopes the new concept, which will be rolled out to 14 more locations this year, will give it the edge over US industry leader Barnes & Noble.

Borders chief executive George Jones said: “This is a completely new shopping experience that sets Borders apart from every other store.

“We’ve stayed true to what our customers have always loved about Borders, yet we’ve brought a fresh new look and exciting interactive dimension to the store.”

The new stores are part of a larger turnaround effort by the retailer, which has involved it closing underperforming, mall-based Waldenbooks stores. Borders is also considering whether it has any further potential overseas and has refocused its core US store operations.