by Nick Ford

Created on: March 15, 2010   Last Updated: March 16, 2010

The local, friendly bookstore is under threat. Act now to save this endangered species. There are few of us who do not enjoy browsing the shelves of these venerated organisations but are they viable businesses?

Part of the charm of the small bookstore, that it is staffed by knowledgeable and enthusiastic staff, is well stocked and possesses a multitude of interesting but offbeat titles, is the cause of the problem.  Put simply, the quaint proprietary owned bookstore might no longer be viable in the cut through world of book retailing.

The number of independent booksellers trading in the United States and the United Kingdom has fallen dramatically in the last decade.  This has arisen due to changes in the publishing industry. The publishers have slashed the profit margin that is available on each book sale. Consequently books have to be sold in bulk to secure a profit. New retailing channels using the Internet, very large bookstores and supermarket foyers are able to sell books in a low cost high volume environment.  The traditional bookstore which operates in a high overheads low volume environment simply can not compete with the likes of Amazon, Borders and Wal-mart.  Within the second hand market charity retailers add a further complication. Charity bookshops are able to operate at an extremely low cost base while establishing a presence on many UK high streets.

To compete against this onslaught the independent book trade must take careful stock. The traditional bestsellers such as thrillers, romances, crime and popular science are price sensitive and are likely to be increasingly sold by the volume retailers.  The independent bookstores offer a different experience in which the customer can browse from a wide variety of books.

Somehow the independent booksellers need to find a way to make browsing pay.  At present it is an expensive business. A well stocked bookshop ties up a great deal of money in stock which shifts slowly.  Although this creates a bookshop that is great to browse it is an accountant's nightmare. Accountants encourage a quick stock turnover to ensure an efficient use of capital.  Moreover browsing is inefficient. Many browsers end up buying very little.

To address these changes the character of our local independent bookstore will change. The stores must become more efficient and carry less stock.  The fall in book revenue must to be compensated by alternative income that is complementary to book browsing. Many independent booksellers have already started to sell coffee, light snacks, curiosities and stationery. More will offer craft displays, talks and cultural events. 

Those that do no change may go to the wall.

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