In the 1998 Hollywood film You've Got Mail, Meg Ryan plays the owner of a local bookstore that can't compete when a big chain store opens nearby. It's a story that's been played out in real life all over the United States.
According to the American Booksellers Association (ABA), the number of independent bookstores in America has shrunk over the last ten years from 4,700 to 2,500. Facing stiff competition from big chains like Barnes & Noble and Borders, online retailer Amazon.com, and even the book sections of big-box stores like Wal-Mart, Costco, and Target, independent bookstores can only hold on and hope for a sea change. Even the fabled Gotham Book Mart of New York, a part of literary history, finally threw in the towel in June 2007 after 87 years in business, much to the disappointment of serious bookworms.
Coming together
Founded in 1900, the ABA has become a pivotal force for independent booksellers fighting the advantages in capital and marketing held by the chains. It provides management and product consulting and training, and often speaks out against the chain bookstores. It has even gone so far as to file suit against the major chains Barnes & Noble and Borders, claiming they'd put a stranglehold on the market with their distribution networks and received discounts from publishers that were tantamount to price discrimination. The suit was settled in 2001, when the two chain stores settled with the ABA for US$4.7 million.
The ABA has also created Book Sense, a marketing and branding program that releases a weekly list of bestsellers at independent bookstores, creates lists of unique "Book Sense picks" nominated by member stores, and runs a joint gift card scheme where cards bought in one store may be used in another. These creative ideas, it hopes, will allow its members to better compete.
David and Goliath
Northern California has a concentration of independent bookstores like the San Francisco landmark City Lights, which has been running strong for half a century. But even there many established independent stores are succumbing to the competition and becoming nothing more than memories.
Twenty years ago, the independent bookstores there established the Northern California Independent Booksellers Association. Though the stores do not share a common theme, they can still try to group together to buy in bulk so as to keep costs down. They also design promotions that are both fun and practical, such as selecting the best books to read over Christmas break, and plan sales. The association has been a success, and currently has more than 600 members.
Creating an alliance has been a necessity for the independent bookstores feeling the squeeze from bigger rivals. Can the little guys band together and compete with the giants of the industry? The answer is in the hands of book lovers.
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