Early History of American Bookselling
It is almost impossible to say who was the first publisher, the first printer, or the first bookseller. According to John Tebbel's fascinating history of the trade, A History of Book Publishing in the United States, the separation of printing, publishing, and bookselling did not take place in a significant way until 1825. Until that time, "publishers" often printed and sold their own books.
Early booksellers were not specialists, either. They imported and exported various goods--including goose feathers, pickled sturgeon, chocolate, Spanish snuff, and even slaves. By 1812, several organizations had attempted to promote American bookselling by offering gold medals for the best books using American paper, American ink, and bindings in American leather.
"But they were helpless when it came to meeting the great national problems of book distribution, especially in the long, bitter struggle over net price. This was the festering sore that divided booksellers and publishers from the beginning. The principle seemed simple enough: it was only elemental fairness that the bookseller should get the same price for a book that was announced by its publisher. That was an idea, however, that was not universally accepted, since it ignored the competitive instinct to make a dollar." (John Tebbel, A History of Book Publishing in the United States)
The early history of bookselling in America is filled with challenges, some of which are surprisingly similar to the challenges facing booksellers today. In the nineteenth century, as the major publishing houses like Harper & Bros., Putnam & Sons, Dodd, Mead & Co., Chas. Scribner's Sons, and E.P. Dutton & Co. were becoming established, they usually included bookstores in their buildings. The small retailer at the time did not see this as their major competition, primarily because they were struggling with big discounters who sprang up after the Civil War and with subscription or advance orders taken by book salesmen.
Important Dates in Early Bookselling
1642: Hezekiah Usher was considered father of the trade with his store in Boston.
1689: Benjamin Harris established the London Coffee House selling tea, coffee, chocolate, and books.
1713: Ambrose Vincent of Boston holds earliest recorded book auction.
1786: Isaiah Thomas sells imported copies of Memoirs of a Woman of Pleasure or Fanny Hill by John Cleland.
1802: Mathew Carey forms American Company of Booksellers; fifty booksellers attend the first trade fair in New York.
1839: First paperback revolution. Magazines are printed in newspaper format with reprints of pirated British novels Brother Jonathan and The New World.
1890: John Wanamaker, leading department store retailer, claims bookselling is a decaying business.
1901: American Booksellers Association holds its first convention.
Exercise 26
Make an appointment with your owner or manager to learn the history of your store.
Points to Consider
- When was your store established?
- Who was the first owner?
- Has the store always been in the same location?
- Has the store ever expanded?
- What authors or events are memorable?
American Bookselling in the Twentieth Century
American booksellers in this century have faced a number of challenges that mirror those of the early booksellers, as well as some brand new challenges that those early booksellers could never have imagined.
In the early part of the century, books were primarily the currency of an educated elite, and bookstores tended to be slightly stuffy, staffed by gentlemen in suits and often organized at the whim of the owner. More customer-friendly outlets were found in the larger department stores, many of which housed large book departments until the 1970s and '80s.
After World War II and the passage of the GI Bill, books lost their elite status and became more widely available and desirable to a broader spectrum of the American public. In the '50s and '60s, there was an explosion in paperback publishing, and retail visionaries like Marshall Smith saw great potential in bringing books to a larger audience. His company, Paperback Booksmith, was one of the earliest outlets to feature paperback books, arranged by category rather than by publisher, and to place them alongside the hardbacks rather than in a ghetto at the rear of the store, as dictated by the convention of the day. The rise of the mall offered even more opportunity to broaden the book-buying audience, and Paperback Booksmith expanded into numerous mall outlets.
Soon larger companies saw the potential for bookstores featuring paperbacks and decided to capitalize on the mall phenomenon. By the late 1970s and '80s, Walden Book Company and B. Dalton Bookseller dominated the mall scene.
Most independent booksellers could not afford mall rents, and so they found themselves in streetfront stores in small towns and large cities across the country. As the larger chains tended to stay away from streetfront locations, the independents were able to claim their territory and build their reputation as local merchants active in the community and offering strong personalized service. In the early '80s, some independents in larger cities found that they could sustain larger stores, broadening their selection and hosting events to serve a community of readers of which they were the pulsing center. Stores like the Tattered Cover in Denver and A Clean Well-Lighted Place for Books in San Francisco created a new model for an urban store, with more books, more space, and more events.
Also in the early '80s, Gary Hoover created a company called BookStop and began opening what were dubbed "superstores," mostly in the South. BookStop offered deep discounts in large spaces, though the selection was not what we would necessarily associate with a superstore today. Another company, based in Ann Arbor, also began opening and servicing larger stores. The Borders stores and the independently owned stores that were serviced by Border's parent company, BIS, were typically larger than average and boasted a more eclectic selection than the BookStop stores.
As more and more women entered the workforce, shopping patterns began to change. The amount of time spent in malls was on the decline as households were more pressed for time with less time to browse. The chains, by the end of the '80s, began to realize they were operating in confined spaces in malls, with dwindling traffic and sales potential. They saw what larger independents were able to achieve in larger stand-alone and streetfront locations, and they watched the rapid expansion of BookStop and the more understated growth of Borders and BIS. Soon the consolidation began.
Barnes & Noble made the first move. Up to then known primarily as a college store operator, with a few East Coast bargain-book oriented general stores, B&N purchased B. Dalton Booksellers, giving them instant access to leasing agents and locations across the country. Then they purchased BookStop and, in the early 1990s, began to create the superstores that we think of today when we think of Barnes & Noble.
In the mid '80s, Waldenbooks, still operating in the malls, was purchased by K-Mart. The only immediate result of this marriage were the book departments that began springing up in K-Marts. A few years later, K-Mart bought Borders, and soon Borders superstores were springing up beside Barnes & Noble, both stores often in close proximity to the once-successful independent store that had opened up the market.
The last decade of the century can be divided neatly into two phases: the proliferation of the corporate superstore and the launch and stunningly rapid growth of on-line bookstores, notably amazon.com and barnesandnoble.com. In the first half of the '90s, independent stores were fighting for their lives against chain stores with more space, more books, and vastly more resources. Many independents went out of business, but many more tightened up their business practices, streamlined their operations, and hung in for the duration. Now, late in this decade, we see an encouraging number of independently owned bookstores emerging and reemerging as contenders in the communities they have worked consistently to serve.
The most immediate threat -- and opportunity -- for independent booksellers today comes from cyberspace. Amazon.com, the first major player in this marketplace, has set a new standard for service and selection, claiming to offer millions of books, many at greatly discounted prices. In response, Barnes & Noble launched and continues to promote and refine barnesandnoble.com (then partnered with Bertelsmann AG for increased resources), while Borders.com has also leaped into cyberspace, albeit with less of a bang.
While many independent booksellers have created an individual web presence, ABA has made it a priority to ensure that the community of independent booksellers has a significant presence on the Internet. The launch of BookSense.com, a network of ABA member stores, provides an e-commerce option for independent booksellers -- and for their customers. At this writing, a major effort was underway to "brand" the Book Sense identity in anticipation of going "live" and selling books on the web.
As we head into the year 2000, the crystal ball is still cloudy on the future of booksellers in America. What is encouraging is that people are using the new technologies, not to replace books, but as a means to buy them! A recent survey by Publishers Weekly found that a majority of teenagers think reading is "cool." These hopeful signs, along with the proven determination of independent booksellers to survive, are strong indications that the future of bookselling will include a diversity of physical and virtual stores serving a diversity of book-buying, book-reading customers.
Exercise 27
List the three biggest challenges facing your bookstore today. Share your list with your owner or manager and note their remarks.
Exercise 28
If your store is facing or has faced competition from superstores, what steps have been taken to ensure your survival. What other steps do you think might be considered?
Where Books Are Sold
Books are sold through a variety of outlets--from bookstores to drugstores to websites. Similarly, there are various markets for books. The following chart shows market share, based on the 1998 edition of the Consumer Research Study on Book Purchasing.
Sales by Outlet from Consumer Research Study on Book Purchasing
Market share by bookselling channels, 1998
(Unit Sales of Adult Books)
| Total Purchased in Bookstores | 45% |
| |
| New-Book Bookstores | 42% |
| Independents | 17% |
| Large Chains | 25% |
| Used-Book Bookstores | 3% |
| |
| Multimedia Stores | 1% |
| |
| Direct to Consumer | 25% |
| E-Commerce/Internet | 2% |
| Total Mail | 23% |
| Book Clubs | 18% |
| Mail Order | 5% |
| |
| Total Mass Market | 19% |
| Food/Drug Stores | 4% |
| Price Clubs | 6% |
| Discount Stores | 9% |
| Mass Merchandisers | 6% |
| |
Other Outlets (Includes department stores,
card/gift stores, hobby/craft stores, etc.) | 10% |
Independent Bookstores
Successful independent bookstores stock a selection of mainstream books and sidelines that appeal to families, professionals, neighborhood friends--all the book buyers in their market area. Independent bookstores can be found anywhere, including downtown buildings, airports, strip centers, shopping malls, and range in size from 200 to 30,000 square feet. Well-established large independent stores--for example, Powell's City of Books in Portland, Tattered Cover in Denver, and Harry W. Schwartz in Milwaukee--were the pioneers of the superstore concept.
In recent years, a number of independent bookstores have developed into specialty outlets. The store's inventory, image, and marketing target a specific segment of customers, a "niche." Specialty stores provide more detailed knowledge and greater depth of stock in one subject area, such as children's books, travel, or mysteries.
Many independent stores extend their market reach through out-of-store sales. This form of direct selling involves taking books to the consumer. Bookstores find this a useful and sometimes vital addition to their over-the-counter trade. Schools, offices, factories, even customer's homes have become selling places for the independent bookstore.
Chains
Chains have stores of various sizes, but it is the chain superstore of the 1990s that has offered the most competition to independent booksellers. This type of bookstore typically has at least 10,000 square feet of selling space and, in many cases, more than 30,000 square feet. Discounts are offered, based on publishers' suggested retail prices, ranging from 30% to 40% off "bestsellers" to 10% to 20% off other hardcover titles. The two most prominent national chains at this time are Barnes & Noble and the Borders Group.
Mail-Order Bookselling
Mail-order catalogs offer a preselected range of goods and the convenience of home browsing.The main players in the mail-order market for books since the 1930s have been the book clubs. Book clubs entice customers by extremely cheap introductory or premium offers of popular titles. Some independent booksellers have successfully entered the mail-order market on a smaller scale, particularly stores with a specialty or reputation for signed editions.
On-Line Bookstores
The world of the Internet is one in which information is changing constantly, and consumers on the World Wide Web have come to expect new and useful data on an ongoing basis. An ever-increasing number of on-line bookstores offer information and the ability to purchase, or in some cases download, books. Publishers and booksellers host "meetings" and "chats" with authors or others in the industry. Amazon.com is probably the most recognizable virtual bookstore, taking orders directly on the Net, with no retail storefront and offering deep discounts. In this realm, as well as the realm of mail-order sales, independent booksellers with a recognizable niche or specialty generally have the best chance for success.
Other Outlets
Garden centers, health food stores, kitchenware shops, outdoor recreation stores, gift and hobby stores, and other specialty retailers sell books as a sideline to their primary product lines. These outlets can be supplied by the merchandising wholesalers or the same publishers that sell to bookstores.
Price clubs or warehouse clubs compete with each other and with bookstores on price. Their superior buying power enables them to discount book prices, often offering "loss leader" price promotions (selling below cost price). Even though the range of titles offered by price clubs is very restricted, many of the titles offered at deep discounts are those that bookstores consider bestsellers.
Exercise 29
Do you compete with other bookstores in your market area? List your competitors and their strengths and weaknesses.
Exercise 30
List four non-bookstores in your community where books are sold. What does your store offer that these locations do not?
