-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 GVtBhyZdD+21ZZKHRG71OXzNU1X/PzMmtG+KquRf7Y7C4DMZXd+1PwbhHfDrlEAi
 YI2a1T2s9y1Z7Qo0jOHgCA==

<SEC-DOCUMENT>0000940510-04-000050.txt : 20040526
<SEC-HEADER>0000940510-04-000050.hdr.sgml : 20040526
<ACCEPTANCE-DATETIME>20040526095008
ACCESSION NUMBER:		0000940510-04-000050
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040524
FILED AS OF DATE:		20040526

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MRKONIC GEORGE R JR
		CENTRAL INDEX KEY:			0001208464

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13740
		FILM NUMBER:		04831200

	BUSINESS ADDRESS:	
		STREET 1:		BORDERS GROUP INC
		STREET 2:		100 PHOENIX DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108

	MAIL ADDRESS:	
		STREET 1:		C/O BORDERS GROUP INC
		STREET 2:		100 PHOENIX DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BORDERS GROUP INC
		CENTRAL INDEX KEY:			0000940510
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940]
		IRS NUMBER:				383294588
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0126

	BUSINESS ADDRESS:	
		STREET 1:		100 PHOENIX DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108
		BUSINESS PHONE:		(734) 477-1100

	MAIL ADDRESS:	
		STREET 1:		100 PHOENIX DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>mrk105.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-05-24</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000940510</issuerCik>
        <issuerName>BORDERS GROUP INC</issuerName>
        <issuerTradingSymbol>BGP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001208464</rptOwnerCik>
            <rptOwnerName>MRKONIC GEORGE R JR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>100 PHOENIX DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ANN ARBOR</rptOwnerCity>
            <rptOwnerState>MI</rptOwnerState>
            <rptOwnerZipCode>48108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-05-24</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>G</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2242</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>22.34</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>100676.0000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2242.0000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Trust</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The shares were transfered to a charitable remainder annuity trust under which Mr. Mrkonic's wife has the right to receive an annual payment of 5% of the initial fair market value for 3 years.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: By Kelly S. Burnett, Authorized Representative</signatureName>
        <signatureDate>2004-05-25</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----