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 in-dependent 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 “3C’s” that contributed to the independent bookstore resurgence:
COMMUNITY: Independent bookstore owners promoted the idea of consumers supporting their local communities by shopping at neighborhood businesses. Independent bookstores won customers back from Amazon and other big box players by stressing a strong connection to local community values.
CURATION: Independent booksellers began to focus on curating inventory that allowed them to provide a more personal and specialized customer experience. Rather than recommending only bestsellers, they developed personal relationships with customers by helping them discover up-and-coming authors and unexpected titles.
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.
Simultaneously, 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.
Given these findings, the study’s main takeaways and recommendations are:
1. Communicate the value of community and encourage customers to participate in a broader movement to shop local.
2. Compete primarily on experience and quality, not on price and inventory.
3. Establish the bookstore as a gathering place by offering events that consumers view as unique experiences. Events should cater to local tastes and the specific interests of the community.
4. Contribute to (and utilize) industry data on emerging independent retail trends.
5. Share leading practices with other independent retailers (e.g., through industry/ small business associations, local Chambers of Commerce/institutes, etc.).
Citation:
Raffaelli, Ryan. "Reinventing Retail: The Novel Resurgence of Independent Bookstores." Harvard Business School Working Paper, No. 20-068, January 2020. View Details