It Can't Be Business As Usual For Book Chains Anymore

Sad day for the bookselling business. After weeks of speculation, Borders Group announced today it has filed for Chapter 11 bankruptcy protection and will close 200 stores by the end of April.

As someone who worked in the book trade for 15 years, this really should be a final wake-up call to the industry that the current superstore model just doesn't work anymore. Why would consumers want to pay full price on a $25 hardcover when they can get it on Amazon for $15 without paying a silly membership fee.

Today's book chains are more or less showrooms for Amazon. You go in, get a cup of coffee, browse the aisles, write down your titles, go home, order online and save 20-50%. About the only thing I ever buy at a superstore is a magazine or a mass-market paperback, and that's if I have a 30% coupon.

Back in the '80s and early '90s, chains like B. Dalton, Crown, Bookstar and even Borders discounted everything. You felt like they actually cared for their customers. But as the superstores grew, so did the overhead and soon we were back to paying the full list price. Oh, but if we bought their rewards card we could save 10%. Why should we have to pay anything to save money?

Buying anything, whether it's groceries, clothes or books, is all about price. We work hard for our money and have countless living expenses. When we do part with our limited disposable income it's not going to be for the full list price. Not when someone else has it for less.

Look at the music chains. Tower Records and Wherehouse all failed because they didn't adapt to a changing environment. Granted, digital sales were a major factor, but when you're selling CDs for $18.99 and Amazon has the same one for $9.99, your not going to stay in business for very long.

The book chains will say the turnaround is due to to emerging digital market, not price of product. That may be a small piece of the puzzle but readers, real readers, still prefer a physical book in their hands - the weight, smell of the paper, turning the page, discovering a title via an engaging cover on an actual bookshelf. I'm sorry but eReaders just don't offer the kind of intimacy true book lovers crave. Never will.

So should the remaining chains just pack up and let Amazon rule the day? No, bookstores are still viable. They just need to respect their customers more. Eliminate the pesky membership cards and go back to to offering discounts across the board - mass market, trade, hardcover. The sheer volume of stock you order from wholesalers and publishers keeps your cost per unit low. Pass some of the savings on to consumers. If you're store overhead can't support it, close stores. You don't need three in a five-mile radius. Give readers a reason not to go home and order from Amazon. Your discounts may not be as deep, but something's better than nothing and readers will respect the effort. Make going to a bookstore special again.