Service, location are bookends of success for independent booksellers

Linda Malcolm recalls a quote she once heard from someone selling antique books:  “It’s a very pleasant way to make not much money.” As the owner of Indigo Books on Kiawah Island, Malcolm knows too well the challenges of running a bookstore.  Independent bookstores face competition on a number of fronts, including chain booksellers such as Barnes & Noble, discount retailers, like Wal-Mart and Costco, and the Internet, where the click of a mouse at Amazon.com opens a large literary world.  “There’s a place for all of those,” says Malcolm, a former librarian.  “But when people want book advice or they just want to browse, independent bookstores are good for that.” Potential antagonists  South Carolina has about 100 independent bookstores. “The independent bookstore market is sort of holding steady,” says Wanda Jewell, executive director of the Southeast Booksellers Associates, which represents bookstores in 11 states. Today, more independent bookstores are opening, particularly those with a specific focus on niche, such as mysteries or science fiction books.  Jewell recalls about `0 years ago when the independent bookstore industry had its worst years.  “We probably lost the majority of our stores in 1995 and 1996, “ she says. It was about that time when megastores like Barnes & Noble, Borders and Books-A-Million were gaining popularity.  Barnes & Noble has 821 stores across the United States and reported $9.9 million in net earnings for early 2005. Books-A-Million also is local competition for independent booksellers.  It has 206 stores in the Southeast; the company reported more than $4 million in net sales as of January 2005.  Online giant Amazon.com is marking its 10th anniversary this year.  With a net income of $78 million as of March 31, 2005, Amazon.com is a powerful online competitor, selling books as well as a variety of other products. Even retailers such as Wal-Mart, Costco, Sam’s Club and Target feature the hottest bestsellers and mass market paperbacks at deeply discounted prices because of their ability to order massive quantities. It is significant competition for independent bookstore owners, many of whom have been forced out of business.  Chapter Two Bookstore closed its doors on Meeting Street in 2001 after almost 20 years in business.  Owner Susan Davis cited the competition from online booksellers  offering books at deep discounts.  The good news for independent bookstores is the playing field is leveling and independents are gaining strength. According to Ipsos BookTrends, a syndicated study based on data collected from consumers, sales at independent bookstores increased in 2004, both in terms of dollars and number of books sold. A May 2005 press release from the American Booksellers Association noted Ipsos estimates consumer spending for books sold across all channels held steady at $13.3 million for the second year. Unit sales were up 2.5% from 2003 at 1.7 billion.  Independent and small chain bookstores’ market share accounted for 9% of consumer spending, marking a 2.1% increase since 2002.  A friendly cast of characters  For the country’s approximately 2,200 independent bookstores to continue, Malcolm says two ingredients are critical:  location and offering more than just books.  She points to great customer service as a way independents can take on the megastore competition. “Larger bookstores are homogenous, and that’s both to their advantage and to their detriment,” she says.  Michelle List has owned the 15-year old All Books & Co. in Summerville for 11 years.  When a young customer comes in asking for a copy of Wuthering Heights, List goes straight to the shelf.  Another customer looking for a sixth-grade workbook receives personalized attention, including recommendations and an offer to order additional books. It is knowledge and attention to detail that keeps customers coming back to the independents.  Most people realize they pay a few dollars more for the book, but it is a tradeoff to keep the stores open and to develop a relationship with the bookstore owner.  List makes it a point to patronize small businesses and never shops at Wal-Mart, she says.  “It matters to me.  Saving $15 a month on cleaning supplies is not enough to shop where no one knows my name.  I’m willing to pay that to say ‘hi’ to people on the street and know their faces.” List says it is up to the buying public whether stores like hers will stay in business.  “It’s your choice.  Every time you pull your wallet out, you decide what you want your world to look like tomorrow.”  Even though Pat Giacinto cannot offer the same kinds of discounts large bookstores can, customers receive an added value when they shop at Ravenous Reader on Folly Road – Giacinto herself, she says. Giacinto reads as many of the books in the store as she can, often staying up into the early morning hours to pour over new titles.  She uses her knowledge to work with James Island schoolteachers who need assistance in selecting books to complement a lesson plan.  And she has a keen sense for matching customers to books they will enjoy. Keeping Ravenous Reader open 10 years has been an uphill battle, Giacinto says.  “I’m constantly re-evaluating and learning how to spend my money wisely so I can stay here.”  All the bookstore owners credit their loyal customers with keeping them in business.  List at All Book and Indigo Book’s Malcolm say many of their customers even helped pack boxes when they each moved to new locations this year. Malcolm, who owns Indigo with her husband Nat, says her customers have a sense of ownership in the store.  “This store is successful in large part because of the customers.”  “I have a core group of customers – they are the best,” Giacinto says.  “I wish I could give the books away to them.”  Setting the scene  Besides providing knowledge and friendly service, independent booksellers rely on the old real estate adage: location, location, location.  Being too close to a large bookstore can be a death sentence for a small bookseller. Indigo Books recently relocated to the new Freshfields Village on Kiawah Island.  Malcolm says she is fortunate because she has cornered the bookstore market for the island area.  And she has a book-loving customer base. “The population here is educated, and they have the time and the means to purchase books.  It’s a wonderful place to own a bookstore,” she says.  Competition in Summerville is probably on its way, List says.  With the opening of Azalea Square, which features several popular retailers, including Target, List says a chain bookstore in her town is inevitable.  Despite the fun these three bookstores owners have, they admit the challenges are real.  IT is hardly a business that creates millionaires. “It’s a tough business to break into,” Malcolm says.  “To open a brand new bookstore, you have to have another source of income for awhile.  If you have seed money to open a well-stocked store, you have a passion for books and a slam-dunk location, I think you’ll do fine.”  Giacinto would do it all again, she says, because the rewards are greater than the challenges. “I have come to realize over the years this is truly a labor of love,” Giacinto says.

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