Bookstore Keys: Independents on the Exposed End of the Titanic?
In 1975, Lemuria was born as an independent bookstore. It was a brain-germ product of the counter culture movement that started in the 60s. Middle America was a little later in the culture realization of those times. I remember that independents were approximately 50% of trade sales for publishers. We were also in the middle of the “malling of America” retail growth stage and the mall chain bookstores were the primary competition for independents.
Above: The original Lemuria sign used at The Quarter.
As the “malling” strength took effect, a parade of cattle-like customers looking to consume enhanced the growth of chain bookstores. Somewhere in the 80s, I remember independents strength of sales declining to 40%, then 33%, thus decreasing the importance of independent book selling in the marketplace.
Left: Lemuria was actually a converted apartment and held a modest $8,000 in books.
In the 90s, independents were challenged by the development of the big box stores, and their strategy branding (B&N, Borders and in the South, Books-A-Million). Wholesale Clubs, Wal-Mart, etc. began to erode small store sales using heavy loss leader discounting. Independent market share continued to drop 25% to 20% and so on.
Amazon was also birthed in the 90s, and the loss leader book price was exaggerated to its height of influence and product devaluation as the new century began. Airports became the new malls as bookstores prospered from the busy traveler. Independent market share dropped like a sunk boat to around 10%. Product printed price seemed to have little meaning as independents struggled to add customer value from their reading skills, inventory editing using their buying skills, and loyal author/publisher support with bookstore signings and readings.
In the 2000s, box stores boomed, Amazon sales exploded and price clubs continue to devalue our market place and product. Now 2011, Borders appears busted, B&N seems on the run, though end of year sales figures don’t prove that fact. Amazon’s Kindle is in a beast-like growth cycle and seems to be the lead market dictator followed by the nook and iPad. (See previous Bookstore Key: The New Rules of Retail)
Please note, these exact sales figures are not my point, for I am reflecting basically from memory. However, 3 1/2% of market share is where independents stand today according to a recent Publisher’s Weekly article.
Market Share of Major Outlets for Trade Books, 2009–2010
(based on dollars)
| Outlet | 2009 | 2010 |
|---|---|---|
| Barnes & Noble | 22.5% | 23.0% |
| Amazon.com | 12.5 | 15.1 |
| Borders | 14.0 | 13.1 |
| Wal-Mart | 7.0 | 5.8 |
| Warehouse clubs | 3.6 | 4.0 |
| Independents | 3.4 | 3.5 |
| Books-A-Million | 2.8 | 2.7 |
| Target | 2.0 | 1.9 |
| Supermarket/grocery | 2.0 | 1.7 |
(See full article in Publisher’s Weekly here.)
You may ask why I write this as it appears that the independents industry strength is at the exposed end of the Titanic about to sink with the band playing a swan song: I disagree.
Our time for redefinition is now. We can be vital again, and if we made it through the Great Recession, we’ve done a few things right. As we’ve flattened out, it’s now time to bust a gut and grow, utilizing what we do right. We need to keep refining our bookstores to our community. Do we have the energy left and can we muster up the juice it takes to grow again?
So much depends on our publishers and their desire or need for our good work and services. Three and a half percent of trade sales is so little, however, can our influence be 10% or more in 2 years? I’m not so sure it can’t, and who knows if that can happen. We need help from the publishers that care about our work, helping us to make our presence more felt in our communities to enhance good books, good authors and good writing.
And once again, I ask: Can the publishers lower retail prices to give us a chance? Please help us stop the prostitution of our product and so much hard work by the authors. Good readers and good booksellers want the care and good help of publishers.
Written by John
9 responses so far ↓
1 Jeanie Clinton // Apr 6, 2011 at 4:29 pm
Well said, John Evans!
This is a lot for the publishers to think about.
I suspect that in their hearts and souls they have always loved the independents and their contribution to the bottom line. They’ve appreciated the blood, sweat and tears you’ve put into your businesses and the many years of devotion to the craft of selling. Unlike the box and mall stores, the independents have not been driven by greed, but by the love of the written word and gratification derived from a day’s hard work and the pleasure of engaging in strong relationships with loyal customers and authors…relationships that were built over many years. Let’s hope the publishers hop off the bandwagon of serving the greedy and wholeheartedly re-focus on the art and craft (and love of) bookselling!
I can see how they got into this fix…especially when you consider that today’s aggregate figure is only 3.5%. But the larger question is this: how many independents would still be here if they hadn’t been driven out of business by the book (box/mall) monsters?
With many of them bankrupt and now off the radar screen, I expect your prediction is right on target: independents have a chance to see their percentage grow.
Lowering the retail price of books is a grand idea. I certainly remember what happened in the record industry when the music publishers didn’t ‘get it’ that the price of a CD was too high. Hopefully the book industry will no be so slow to adjust.
I appreciate the dedication of my local booksellers in New Orleans (Octavia Books & Garden District Book Shop & Faulkner House books, to name a few) and absolutely love the independents in Mississippi (Lemuria, of course, is at the top of the list, but Square Books and Turn Row Books,too, are all great stores!)…These and many others need all the support they can get from the publishers. It be interesting to see what steps are taken to address some of these concerns. Thank you for being so candid.
2 billy neville // Apr 6, 2011 at 5:07 pm
ONCE AGAIN JOHN, YOU ARE CORRECT & RIGHT ON TARGET WITH YOUR COMMENTS; YOU HAVE NOT BEEN SUCCESSFUL BY LUCK ALONE, AS SO MANY APPRECIATE WHAT YOU DO, SO MUCH! KEEP IT UP, AND BEST REGARDS!
3 john // Apr 6, 2011 at 9:47 pm
HEY BILLY AND JEANIE=THANKS FOR CARING=I JUST NOTICED THE TITLE ON DISPLAY ON THE LIME GREEN TABLE WAS JUNGS MAN AND HIS SYMBOLS=I THOUGHT THAT TO BE A SUBLIME COMMENT /-CARE FOR YOU BOTH=THANKS,JOHN
4 Linda // Apr 11, 2011 at 11:51 am
Thanks John for putting into words what I’m thinking so much about every day. I can’t say enough how much it means to be reminded that we’re all working really hard to figure it out, driven by a belief in the book and some kind of magic that we feel exists between the covers.
5 billy neville // Apr 11, 2011 at 7:28 pm
john; had to be in new orleans on business this past weekend, and had occasion to pass by the old “bultman funeral home location” now home to borders; so SAD a sight, have perhaps never seen before; reminded of elton john’s song: funeral for a friend, though borders and other big box stores have NOT made it easy for you and yours; in process of writing column for MR Magazine, as passed old Saunders Wholesale Florist location on bailey avenue here in west jackson , once a thriving and prosperous business, supplying lots of fresh flowers to MOST all retail florists across the entire state; THEY are now closed, and retail florists purchase most of their flowers now from SAMS; yet there just has never been a better time for independents, in all phases of business than right now; reminds me of the phrase: when one is in the driver’s seat, YOU DRIVE;
again, keep it up, as so many individuals and customers are pulling for you in every way; regards; billy neville
6 pat 20 // Apr 11, 2011 at 7:55 pm
As the “malling” strength took effect, a parade of cattle-like customers looking to consume enhanced the growth of chain bookstores—-Johnny, I don’t think a cow could have gotten into the pint sized bookstore at the Quarter.
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9 squeakycleanster // May 28, 2011 at 3:56 pm
I still kind of scared…it may be a little extreme but I’m starting to thing Apple should have some kind of book tax to contribute to what they’ve done to the book industry. But maybe we’re not there yet,as long as there are people who still find a kindle too be way too expensive for their budget.
There’s still a lot of those right?
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