Recent news about bookstores has been a mixed bag. Longtime readers of this newsletter know I've been on a death watch for Barnes and Noble for a couple years. We've recently worked out a direct arrangement with them and are trying to make a go of it, but they are also in an ever weakening position. Recently, it was announced they would be closing eight more stores in the coming year. I wouldn't be surprised if their eBook business was sold off to Kobo and they get out of this losing business. EBook sales remain flat or down and have plateaued at 20% of all book sales. The vast majority of eBook sales are fiction titles.
While B&N is up and down, The Last Word in Charlotte, North Carolina went bankrupt this past week. While they sold mostly used books and media, they were on our list of independent customers. We've noticed a decided slowing in the payments coming from independents of late. Many are more than 90 days past due. We've recently sent another round of dunning emails, some going unanswered. I worry if I follow up I will discover a couple more bookstores exiting the business. This bears watching. In a strong economy, to still have business failures in this industry indicates there are structural changes afoot.
And here's our culprit .... Amazon! We are all very familiar with their global online offerings. In fact, they are about one-third of our business and about half of the overall book trade (Barnes is 17% overall -- the only other player over 10%). Amazon recently opened a brick and mortar bookstore in New York City near the site of a former Borders store (boy do I miss those!)