Reinventing Retail: The Novel Resurgence of Independent Bookstores
This study examines how community-based brick-and-mortar retailers can achieve sustained market growth in the face of online and big box retail competition. The appearance of Amazon.com in 1995 led to a significant decline in the number of independent bookstores in the United States, leading many analysts to predict the demise of the sector. However, between 2009 and 2018 independent bookstores proved to be far more resilient than expected. The American Booksellers Association (ABA) reported a 49% percent growth in the number of “indie” booksellers, from 1,651 in 2009 to 2,470 in 2018. This study identifies several key factors that contributed to the independent bookstore resurgence: (1) COMMUNITY: Independent bookstore owners promoted the idea of consumers supporting their local communities by shopping at neighborhood businesses. (2) CURATION: Independent booksellers began to focus on curating inventory that allowed them to provide a more personal and specialized customer experience. (3) CONVENING: Independent booksellers started to promote their stores as intellectual centers for convening customers with likeminded interests—offering lectures, book signings, game nights, children’s story times, young adult reading groups, even birthday parties. Some bookstores routinely host over 500 events a year. Finally, the ABA played an important role in disseminating best practices and data, reinforcing the sector’s core values, setting up external partnerships, and advocating on behalf of its independent bookstore members.
Citation:
Raffaelli, Ryan. "Reinventing Retail: The Novel Resurgence of Independent Bookstores." Harvard Business School Working Paper, No. 20-068, January 2020. View Details