Bookstore Chains, Long in Decline, Are Undergoing a Final Shakeout
Bookstore Chains, Long in Decline, Are Undergoing a Final Shakeout
By Indabusiness.com (individual author and date not indicated, but date is recent)
APPLETON, Wis. — This fall, at a moment when retailers traditionally look forward to reaping holiday profits, the owner of the fourth-largest bookstore chain in the country surrendered to the forces of e-commerce.
Book World, founded in 1976, sold hardcovers, paperbacks and sometimes tobacco in malls, downtowns and vacation areas across the Upper Midwest. It had endured recessions, the expansion of superstores like Borders and Barnes & Noble, and then the rise of Amazon. But the 45-store chain could not survive the shifting nature of shopping itself, and so announced its liquidation.
“Sales in our mall stores are down this year from 30 to 60 percent,” said Bill Streur, Book World’s owner. “The internet is killing retail. Bookstores are just the first to go.”
As e-commerce becomes more deeply embedded in the fabric of daily life, including for the first time in rural areas, bookstores are undergoing a final shakeout. Family Christian Stores, which had 240 stores that sold books and other religious merchandise, closed this year, not long after Hastings Entertainment, a retailer of books, music and video games with 123 stores, declared bankruptcy and then shut down.
“Books aren’t going away, but bookstores are,” said Matthew Duket, a Book World sales associate waiting for customers in the West Bend, Wis., store.
Here is one way to measure the upheaval in bookselling: Replacing Book World as the fourth-largest chain, Publishers Weekly says, will be a company that had no physical presence a few years ago. That would be Amazon, which having conquered the virtual world has opened or announced 15 bookshops, including at the Time Warner Center in Manhattan.
In a famous passage in Ernest Hemingway’s “The Sun Also Rises,” a novel that Book World used to sell, a character is asked how he went bust. “Two ways,” he answers. “Gradually and then suddenly.”
That more or less mirrors what happened to Book World and other bookstore chains.
A few years ago, e-books were widely assumed to be driving the physical book — and the physical bookstore — to extinction. Instead, e-book sales leveled off, and the physical book has retained much of its appeal.
But readers are increasingly ordering those books online, getting them delivered with their clothes and peanut butter and diapers. Bookstore sales were $684 million in October, the Census Bureau said this month, off 4.6 percent from a year earlier and down 39 percent from a decade ago.
“There aren’t many businesses that can survive a 20 to 30 percent drop,” said Mr. Streur, 68. “Closing was the last thing in the world I wanted. But reality sets in.”
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