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Archives > Bricks and Mortar Bookshops: What is their future?

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message 51: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Online retailing not in the good books

'Cheap deals can end up costing our community, writes Max Shirley

News of REDgroup Retail, the owners of the Angus and Robertson and Borders chains in Australia, and the Whitcoulls chain in NZ, going into administration and probable store closures has shocked the book community.
It has also created much debate about the state of the book industry in Australia.
It was already an interesting & challenging time for us, with e-books creating interest & uncertainty.
The failure of REDgroup appears to be due to a combination of factors, some specific to the company, some common to the industry.
The main specific issue is their level of debt. The purchase of bookselling businesses was funded largely by debt, as presumably was their foray into e-books. This debt has proved difficult to service.
People have also questioned the wisdom of some of their management decisions: rationalisation/reduction in ranges,extension into unrelated product lines (jewellery & homewares)their sometimes acrimonious relationship with publishers/suppliers (such as attempts to charge publishers for shelf space), and the policy of charging above RRP.
The main general industry factor is the increasing number of people buying books from overseas online booksellers rather than local "bricks & mortar" stores.
This has affected all Australian booksellers, from independents like us to national chains.
This trend has become more significant over the last year with the increasing strength of the Australian dollar, & was illustrated by a majority of Australian booksellers reporting a decline in sales for Christmas 2010 compared to the previous year.
It is understandable that people try to get the most for their money by shopping around, & if they can buy the same book at a cheaper price from an overseas online retailer then the obvious decision is to buy from that retailer.
However, it is also important to consider the wider implications of that decision.
Amazon and other major cheap overseas online book retailers are large companies whose business model is based on large volumes and small margins.
Their approach is to undercut everybody else in price and thereby grab increasing market share by forcing others out of business. I recently read that Amazon aims to have 50% of the book market in the US within a couple of years.
The end result is the loss of local jobs and closure of local businesses.
If you buy a book from an overseas online bookseller, the money leaves Australia and never comes back. However, buy a book from your local bookshop and the money stays in Australia and to a large degree in your local community, where it is reinvested in products, jobs, schools and infrastructure.
I think sometimes we under estimate the collective power we have with our purchasing decisions.
And you won't see Amazon telling you why this book is not suitable for your child but this other one would be perfect. Nor does Amazon donate prizes to schools and charities, hold author events, stock and promote books from local authors, or promote local events and organisations.
Your local independent bookseller does all this and more.
People who run and work for independent booksellers love books and the way they can enrich our lives, and we love sharing this passion for books with our customers.
In the past fortnight we've had many customers coming in talking about the failure of REDgroup and what we think about it.
Yes, we hope that some more business may come our way because of it, which will help us survive, but we also feel for the staff at REDgroup who are at risk of losing their jobs.
We also wory about what it means for the industry, with publishers owed significant amounts of money by REDgroup and uncertain about their future publishing programs.
REDgroup stores make up about one-quarter of the Australian book market. The risk for Australian publishers and booksellers is that this share of the market will move offshore to overseas online retailers, which will result in a significant reduction of Australian books and significant business closures and job losses in the Australian industry.
The hope for Australian publishers and booksellers is that the demise of REDgroup will cause people to reconsider the value they place on Australian books, on our Australian literary voice and on the contribution their local bookshop makes to their lives and their communities.

Max Shirley and his wife Amanda own MacLean's Booksellers at Hamilton and Toronto

Sorry for the long windedness of this, but I couldn't find the article in the Newcastle Herald online, as much as I spent ages looking, so I typed it all up myself...:)


message 52: by Jacqueline (new)

Jacqueline George (jacquelinegeorge) The more I hear about the RED collapse and its effects, the more I think we live in changing times and the old fashioned bookshop will go the way of the old fashioned sweet shop. They will become so 'niche' that renting space in a modern mall may become uneconomic.

I'm not saying it is good or bad, but I suspect it is inevitable. I would like to see horses making deliveries to shops down town as they used to, but that's long gone. Take photos of your bookshops while you still can...


message 53: by Mandapanda (last edited Mar 03, 2011 12:02PM) (new)

Mandapanda Brenda wrote: Sorry for the long windedness of this, but I couldn't find the article in the Newcastle Herald online, as much as I spent ages looking, so I typed it all up myself...:)..."

Thanks Brenda! Another thought provoking piece. I was glad to see the start of Aussie store Boomerang Books online ebookstore Booku.

Prices seem to compare favourably as well. For example new release Truth Or Demon by Kathy Love - Booku charges AUD 11.81 and Amazon charges USD 9.52.


message 54: by Mandapanda (new)

Mandapanda Staff redundencies and store closures confirmed: http://www.theage.com.au/business/hun...

(Re-posted from another thread, thanks Velvetink)


message 55: by Mandapanda (last edited Mar 15, 2011 10:12PM) (new)

Mandapanda Great article about the rise (and rise!) of indie bricks and mortar bookstores:

Finding and promoting the next big thing is a crucial service of Indie stores, writes Linda Morris.

Not another Underbelly knock-off, thought Jon Page when the publishing house Penguin last year offered him a peek at the manuscript of the crime fiction debut of a former Sydney police detective, Pam Newton. As it turns out The Old School was worth more than a passing glance.

Even before it was published and reviewed and Penguin had begun an advertising campaign, Page, of the eponymous Pages and Pages independent bookseller in Mosman, declared P.M. Newton a "great new voice in Australian crime".

He passed the word on to his fellow booksellers. Gleebooks staged two events with the author. Shearers bookseller Mark Harding became a fan and has been hand-selling the title from his busy front counter.

Having long differentiated themselves from chain store operators by their original content and intimate knowledge of books, it is to the independent bookseller that publishers go to promote niche titles, books of essays or unknown writers.

Newton says such bookshop owners have helped her connect with readers and grow her profile.

"As an unknown novelist you step into a very, very, very crowded agora with your first book," she says. "The difference between debut and dead in the water comes down to the enthusiasm of the indie booksellers who are prepared to pick you off the shelf and put you in the hands of other readers." Read more.


message 57: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Mandy wrote: "Just an news update on the REDgroup (Borders/Angus & Robertson) situation. Here is an article on the redundancies currently taking place at the firm and this article announces that the Federal Cou..."

Thanks Mandy, that's really interesting!


message 58: by Jacqueline (new)

Jacqueline George (jacquelinegeorge) I just posted an article on this at Aussie Authors http://aussieauthorsatwork.blogspot.com/


message 59: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Jacqueline wrote: "I just posted an article on this at Aussie Authors http://aussieauthorsatwork.blogspot.com/"

When I tried it, Jacqueline, it wouldn't work! Might be me >..<


message 60: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Michael wrote: "Went into the Rundle mall earlier today and noticed the A&R store is closed.

Im sorry about those Aussies losing jobs but the general public are only concerned about getting the cheapest price. ..."


Everything you say is true tho Michael!!


message 61: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Michael wrote: "Thanks Brenda i do tend to go on abit.

Heres a link i found which explains things pretty well.

http://www.alia.org.au/advocacy/copyr..."


Yes, that's interesting, for sure :)


message 62: by ★ Jess (new)

★ Jess  | 3071 comments Michael, youre from SA too? I didnt know that :)

Since when was there an A&R store in Rundle mall? Where abouts was it?


message 63: by Jacqueline (new)

Jacqueline George (jacquelinegeorge) You must have been at an unlucky time, Brenda. Link seems to work now.


message 64: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Jacqueline wrote: "You must have been at an unlucky time, Brenda. Link seems to work now."

There you go!! Very interesting!! Thanks..:)


message 65: by Neko (new)

Neko Michael wrote: "Went into the Rundle mall earlier today and noticed the A&R store is closed.

Im sorry about those Aussies losing jobs but the general public are only concerned about getting the cheapest price. ..."


Jupp! I agree with you on for sure. Somethings gotta crack and sadly right now it's businesses and therefore people losing their jobs.

Also a thought on that, with people losing their jobs it also means less money to spend anyways therefore driving people to seek cheaper alternatives.


message 66: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Laura wrote: "Michael wrote: "Went into the Rundle mall earlier today and noticed the A&R store is closed.

Im sorry about those Aussies losing jobs but the general public are only concerned about getting the ch..."


That is for sure!!! :)


message 67: by Maggie (new)

Maggie Michael wrote: "★ Jessica ★ wrote: "Michael, youre from SA too? I didnt know that :)

Since when was there an A&R store in Rundle mall? Where abouts was it?"

It was in James place i think but as i said now i..."


Hey I live in Adelaide too. I thought the A&R store was down the end of the Mall, towards Pulteney St. I know that Borders is there, near Sanity and Harris Scarfes, and Dymocks not far along. I'm sure the A&R was on the other side of the Mall a bit closer to Pulteney.


message 68: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
This is in my local paper today regarding the gift cards for A&R and Borders....

http://www.theherald.com.au/news/nati...


message 69: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Michael wrote: "Doesnt really say anything we didnt already know."

I know, but I thought there may be some people out there who weren't sure of the date..


message 70: by Neko (new)

Neko Brenda wrote: "Michael wrote: "Doesnt really say anything we didnt already know."

I know, but I thought there may be some people out there who weren't sure of the date.."


Yup, i was just about to type the same thing Brenda :) Thanks for the link.


message 71: by Geoff (new)

Geoff Woodland | 313 comments I received an e-mail this morning from Lightning Source and thought the info may be of interest - I have copied the press release as the full e-mail is a bit long.
I am interested in the cost of LS POD in Oz, and how much they charge for packing & delivery. Their fees for P&P in the UK & US are cost are not too bad compared to my current costs for P & P in Oz. It's a shame they picked MEL instead of SYD - sorry Victoria just a joke :-o)



Ingram Content Group selects location for Lightning Source operation in Australia
NASHVILLE, TN – Ingram Content Group Inc. today announced Melbourne as the location for its forthcoming Lightning Source print-on-demand book manufacturing operation in Australia.

The Lightning Source operation in Australia will be Ingram Content Group’s fifth networked book manufacturing facility. The location was selected for its proximity to a large concentration of major publishers and book distributors and to key metropolitan regions in the country. Ingram’s Lightning Source will occupy a building at the Scoresby industrial park in the southeastern suburb of Melbourne.

“The addition of a new manufacturing facility will have a significant impact on publishers, the retail book trade and ultimately consumers,” said David “Skip” Prichard, President and CEO, Ingram Content Group. “At Ingram, we are pleased to expand our leading print and distribution network to the Asia Pacific market, helping more content reach more destinations around the world. We will continue to make investments that fit the future of book distribution, whether traditional, print on demand, or digital.”

The response from publishers since the Australian Lightning Source print-on-demand operation was announced last September has been overwhelmingly positive. Leading content providers welcome the benefits and flexibility that virtual inventory through print-on-demand affords: driving additional sales while at the same time reducing or removing the need to warehouse local inventory, lowering transportation costs, and dramatically increasing the number of titles on hand in the region.

Publishers are submitting new content and growing their digital libraries with Lightning Source in preparation for the launch of Ingram’s Australian in-market book manufacturing facility.

Lightning Source North American facilities include its headquarters in La Vergne, Tennessee, and operations in Allentown, Pennsylvania. Lightning Source international locations include a large-scale operation in Milton Keynes, UK, (central to London) that serves the European region and a facility in Maurepas, France, a joint-venture with Hachette Book Group.

Ingram Content Group’s Lightning Source facility in Australia is expected to begin operation in June 2011.

ABOUT INGRAM
Ingram Content Group Inc. provides a broad range of physical and digital services to the book industry. Ingram’s operating units are Ingram Book Company, Lightning Source Inc., Ingram Digital, Vital Source Technologies, Inc., Ingram Periodicals Inc., Ingram International Inc., Ingram Library Services Inc., Spring Arbor Distributors Inc., Ingram Publisher Services Inc., Tennessee Book Company LLC, and Coutts Information Services. For more information, visit www.ingramcontent.com


message 72: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Thanks Geoff, that is very interesting!


message 73: by ★ Jess (new)

★ Jess  | 3071 comments Three Adelaidans. Awesome :)


message 74: by Maggie (new)

Maggie ★ Jessica ★ wrote: "Three Adelaidans. Awesome :)"

I've noticed threads for other states and territories. Should we start a threads for South Australia? Or rather, I WILL start one and see where it goes. Not sure what to write about at first though. Moderators, can we copy the recent chat about local SA bookstore A&R into it? Ta muchly.


message 75: by Maggie (new)

Maggie Oops. There is one already. Not too smart today apparently.


message 76: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Maggie wrote: "★ Jessica ★ wrote: "Three Adelaidans. Awesome :)"

I've noticed threads for other states and territories. Should we start a threads for South Australia? Or rather, I WILL start one and see where it..."


Glad you found the SA one Maggie...yes, you are most welcome to put that chat into the thread...would be great for us all to read it..thanks :)


message 77: by Neko (new)

Neko I can't find a link to the article but in this months CHOICE magazine there is a very small (2page) article aboout online buying vs instore purchases.

If anyone can get a link for it, that'd be great :)


message 78: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Can't find it Laura, but did it have a heading, or title? I just went to Choice, then did a search for online v instore, and it came up with 871 matches...:o


message 79: by Neko (new)

Neko lol wow! i searched and got 114 XD

The title is 'Top book Buys- Online VS bricks-and-mortar shops'

I couldn't find it when I did that search either. Mighten show up on the site just yet since it's so new, maybe?


message 80: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Laura wrote: "lol wow! i searched and got 114 XD

The title is 'Top book Buys- Online VS bricks-and-mortar shops'

I couldn't find it when I did that search either. Mighten show up on the site just yet since it'..."


Not sure..it's an April magazine? Cos I only saw couple of March 11, lots of 2010, some back as far as 2007..lol
I'll have another look later, and see what comes up with your heading...


message 81: by Neko (new)

Neko Yup, it's April mag. It's also the magazine that has the CHOICE Awards 2011!

Book Depository won an award from CHOICE voters :)


message 82: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Michael wrote: "For anyone who is interested here is the list of A&R stores set for closures.

ACT: A&R Belconnen. NSW: A&R Bondi Junction. Qld: A&R Gympie, A&R Indooroopilly. SA: A&R Mt Gambier, A&R Munno Para...."


Thanks Michael! Pretty sad, that's for sure. The one in Mount Gambier closing, I'm pretty sure that's the only bookstore they have there. But I'm also sure there should be more NSW ones, because the one I bought my sale items at was Erina Fair, Central Coast, and they told me they were closing. We've also lost the one in Newcastle CBD as well.


message 83: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Carmel wrote: "Brenda wrote: "But I'm also sure there should be more NSW ones, because the one I bought my sale items at was Erina Fair, Central Coast, and they told me they were closing. We've also lost the one ..."

Yes very! Sooo many people out of work, without anything else to think about :(


message 84: by Neko (new)

Neko Dunno..mines on a subscription. I did a quick google to see but I didn't get an answer.


message 85: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Michael wrote: "Laura is Choice magazine available at newsagents?

Went to plenty today without any luck."


Pretty sure you have to subscribe, Michael :)


message 86: by Neko (new)

Neko Oo...A thought..Are you joined to your local lib? They might have a copy of it..Might be worth a go.


message 87: by Neko (last edited Apr 05, 2011 05:24AM) (new)

Neko No worries :) I hope they have a copy. If they don't I'll find out if the scanner is working so just let me know :)


message 88: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Michael wrote: "Another 16 Borders stores to close in the next 8 weeks. :(

http://www.news.com.au/business/anoth...

The stores are

NSW: Chatswood, Ho..."


Thanks for that news Michael..sad, awful news. That is the only 2 that we have in our vicinity, both gone!!! I can remember when the first one opened a few years ago, and I was soooo excited. I wandered and browsed for hours! :(


message 89: by Brenda, Aussie Authors Queen (new)

Brenda | 80164 comments Mod
Michael wrote: "Here's a new one the plot thickens.

http://www.booksellerandpublisher.com..."


Oh wow!!! Wonder if there's anything in it.....


message 90: by Grant (new)

Grant | 30 comments I was very sad to see Angus & Robertson in Blacktown shut down. :( We didn't have a Borders near here. But now I'm pretty much limited to Big W, Target etc. Very sad indeed.

I must say though; I read my first Kindle book this month and it wasn't as bad as thought it might be. Still prefer the feel of paper though.

Let's wind the clock back 30 years. I'm sure the world was a better place :)

Grant


message 91: by Neko (new)

Neko @Grant- 30 years? :( I wasn't born then..lol


message 92: by Grant (new)

Grant | 30 comments Hehe


message 93: by [deleted user] (new)

Do you think the closure is because it's cheaper to buy online? Is it really cheaper to buy online here in Oz when there's all the cost of postage? Or is it because Borders and A&R just got way too big and franchisy? If that's the case, can we expect boutique and independent bookstores to reappear in our neighbourhoods? How awesome would that be!


message 94: by Patty (new)

Patty Jansen (pattyjansen) | 37 comments @Naomi Two words: Book Depository. Free postage from the UK anywhere in the world. Even their prices are much lower than elsewhere. I can't see how bookshops will be able to compete with the range and availability of books online.

Therefore, bookshops will have to offer a different experience, and not try to compete.


message 95: by [deleted user] (new)

Patty wrote: "@Naomi Two words: Book Depository. Free postage from the UK anywhere in the world. Even their prices are much lower than elsewhere. I can't see how bookshops will be able to compete with the range ..."

I do agree, tho I mourn the bookstore experience. i'd pay a dollar or two more for a GOOD bookstore experience (but I guess one customer isn't enough!)


message 96: by Patty (new)

Patty Jansen (pattyjansen) | 37 comments @Naomi I'm surprised Borders Chatswood had to close, because of the freaking amount of money I spent there, but yeah, I think that is the reality. Buyers (present company included) want the books now, and when the combined databases ofall the world's publishers, plus some amazing second hand resourses, are at your fingertips, there is just no way a regular bookshop will ever be able to compete.

Bookshops will need to re-invent themselves and will have to come up with a new workable model. I'd like to think that we'd get espresso book machines where you can download and order a book to be made for you while you wait (or have a coffee). Other shops could provide a niche experience by catering for specialised genre and attracting author presences in store.

I think the Borders model was trying to compete with the internet: trying to be as diverse as possible and try to offer as much as possible. But again, there is no way any individual shop can compete with that.


message 97: by Neko (new)

Neko Independent would be sweet but I'm doubtful in the world we live in..Not unless they have something 'amazing' which sets them as different which can help them out.


message 98: by [deleted user] (new)

I know you're exactly right. It's sad, and I miss the experience, but I want my choice and instant (literary) gratification too!


message 99: by [deleted user] (new)

and the local industry is so small! hard to maintain on its own


message 100: by Neko (new)

Neko People neeed to think BIGGER..Today buyers aren't bound by their local shops..As a buyer we can go online and get our 'fix' for cheaper prices. As a business they should be looking to capitialise on it..Like chain markets do..They lower their prices but still end up making a profit in other goods. The same can go for games..I think it'll happen with them as well. Game prices are horrible much like book prices but people are still 'willing' to pay the price. And therefore the prices are still hight but books are different kettle of fish these days.

If book stores import and somehow lower their prices (as our dollar is doing MUCH better) they could probably make some sort of profit while staying in business.

Could even have a mixture of cheap and expensive books..It's work..I think.


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