A career in book publishing requires two things: eternal optimism and realism. Is this combination quizzical? Yes, absolutely. But it simply means that while you may know in your gut that a book won’t perform, you will project the complete opposite to the individuals staring you down in sales conference. Sometimes, you get lucky and against all odds, the book works. Other times, you’re left with some explaining to do, which is precisely where Borders finds itself these days.
To say that it has been a precarious few months for Borders is an understatement. The superstore chain has been in a tenuous position for years. Their management team was forever shifting, events at their stores have been (mostly) frustrating, and they have lagged behind in building an online presence. In late 2009, they began slicing orders for some titles, while skipping others all together. The publishing industry knew there was trouble brewing, and soon began witnessing the unraveling of what had once been a major player. In February, Borders filed for Chapter 11 bankruptcy protection. They are in the process of closing 226 stores, and will probably close more locations as things play out. The nail, as they say, is in the coffin.
This week, executives from Borders presented restructuring plan to its creditors (read: publishers), that promised a more efficient, profitable company by the end of this year. In addition, Borders also believes that by 2015, most of its revenue will come from online sales. This is awfully optimistic for a company that has been in the dumps for so long. Still, the question remains: can anyone fix Borders? The answer is complicated and short: no, they cannot.
The problem with Borders is one that seems to be contagious; Barnes & Noble has the same quandary. Their inventory is largely non-book merchandise like toys, cards, journals, pens, and a space dedicated to the café. There are books: co-op will pay for front-of-store placement, new releases table, seasonal promotions, and stepladders (those book displays you see for one title that looks like a stepladder). Publishers spend thousands of dollars to promote their titles in these much-coveted spots. What about the books waiting to be discovered by a browsing customer shelved in superstore oblivion? What if someone doesn’t want to buy an e-reader, but just a good old-fashioned hardcover? Or, what if a harried mother just needs to stop in quickly with her brood and escape without buying another toy? Apologies, dear customer, but in order to get to the actual books, you have to first muddle through lots of other products. Welcome to the counterintuitive world of the superstore.
The solution seems simple: reduce inventory, stop expansion, merchandise better, and allocate more resources to the online portion of the business. Unfortunately, Borders isn’t in a position where they can recover so neatly by doing the aforementioned. They are a super-broke superstore. But they aren’t the only ones at fault for their painfully slow demise.
The math is simple: publishers continue to increase the number of books they publish, so bookstores have had the challenge of expanding their inventory, selling it, and buying more. Add a recession, a transition to lesser priced e-books, constricted marketing/publicity budgets, and you have a lethal business cocktail. No one really wants to say that fewer books should be published, but fewer books should be published. The movie and music industries have adapted the “less is more” philosophy, not by choice, but necessity. The publishing industry needs to stop, look, and listen—really listen—to the swift changes in the marketplace and make some tough adjustments. This won’t be the saving grace for superstores, but it would certainly help stop the bleeding, and possibly prevent others from joining the record store and video rental store in their entertainment graveyard. Let’s hope it does.
