May 20, 2005 Independent Bookstore Sales Continue Upward Trend May 20, 2005 FOR IMMEDIATE RELEASE Contact: Meg Smith (914) 591-2665 x 1239 [email protected] INDEPENDENT BOOKSTORE SALES CONTINUE UPWARD TREND 2004 Figures Surpass Previous Two Years', While Industry Remains Flat (Tarrytown, N.Y.) The American Booksellers Association (ABA) announced today that independent bookstores' 2004 sales increased, in terms of both dollars and number of units sold, capping a three-year period of sustained growth, according to Ipsos BookTrendsSM, a syndicated study based on data collected directly from consumers from global market research firm Ipsos-Insight. This increase occurred while the bookselling industry, as a whole, remained essentially static. Additionally, the BookTrends survey indicated that consumer demand for books (book buying) outpaced spending in 2004-a reversal of recent trends. "The independent bookstore and small chain segment of the book market remains a vibrant and important part of the retailing landscape," said ABA CEO Avin Mark Domnitz. "The continued growth in both dollar and unit sales shows that the American reading public continues to look to the independents to discover new books of quality and as a primary source for the knowledgeable servicing of all of their book buying needs." Ipsos estimates that consumer spending for books (across all channels) held at $13.3 billion for the second straight year. Unit sales were up 2.5% from 2003, reaching 1.7 billion. Independent and small chain bookstores' market share accounted for 9% of the dollars spent by consumers, up 2.1% since 2002. "The importance of independent bookstores increased each of the past two years," said Barrie Rappaport, Manager of Ipsos BookTrends. "The market share percentage appears lower than in previous years because Ipsos BookTrends recently issued a restated database." According to Rappaport, enhancements to the database included combining the adult trade and juvenile book databases; a move to a quarterly data release schedule; and improved data quality in terms of classifications, descriptions, and detail. "Ultimately, this aspect of the restatement affected the market share position of all classes of trade. The numbers and shares are likely different from past years, but the story for independent booksellers remains the same: dollars spent and units sold in independents have risen," she continued. Of note in the independent/small chain share position was a recovery in the children's sector, which caught up with the turnaround in the trade sector that began in 2000. According to Ipsos, the independents' overall performances exceeded the industry average for the past several years. About the American Booksellers Association Founded in 1900, the American Booksellers Association is a not-for-profit trade organization devoted to meeting the needs of its core members -- independently owned bookstores with retail storefront locations -- through advocacy, education, research, and information dissemination. The ABA actively supports free speech, literacy, and programs that encourage children to read. The association is headquartered in Tarrytown, New York, and online at www.BookWeb.org. About Ipsos-Insight Ipsos-Insight, the flagship marketing research division of Ipsos in the U.S., has industry specialists serving companies in the following categories: consumer products; technology and communications; health and pharmaceutical; financial services; cable, media and entertainment; agrifood; energy and utilities; and lottery and gaming. Ipsos-Insight provides custom and tracking research services to domestic clients, as well as U.S.-based multinationals. It offers concept and product testing, package testing, attitude and usage studies, omnibuses, tracking systems, brand equity, price optimization and segmentation, marketing models, advanced analytics, and global research. Ipsos-Insight is an Ipsos company, a leading global survey-based market research group. To learn more, please visit www.Ipsos-Insight.com. About Ipsos BookTrendsSM Ipsos BookTrendsSM has been tracking the book industry across all channels and providing consumer purchase information for more than 20 years. Reports are compiled from information gathered from a panel of 16,000 nationally representative households who maintain daily purchase diaries for Ipsos. Ipsos-Insight's Behavioral Tracking Division is comprised of syndicated and proprietary tracking services that analyze consumer purchase behavior providing the unique advantage of marrying consumers' behaviors and attitudes and monitoring how each change over time. In addition to Ipsos BookTrendsSM, other syndicated longitudinal tracking programs include PharmTrends, DietTrends, and the Ipsos/AFE Consumer Tracking Study of floriculture products. For more information on IPSOS-Insight, please contact: Barrie Rappaport Chief Analyst Ipsos BookTrendsSM Tel: 312.665.0541 www.ipsos-insight.com/books.cfm [email protected] Topics: Industry Statistics,