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)

(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.

See previous blog on The Future Price of the Physical Book