Book Trade – ICRS, American Christian Publishing and UK Distribution

A view from CBA’s International Christian Retail Show 2014 in Atlanta, Georgia … Evangelical Christian publishing in the USA is clearly not in great shape …

After a gap of well over 10 years, I returned to what I knew as CBA, now called ICRS, and was shocked by what I found. This was the 65^th anniversary of the show but it’s a shadow of its former self. The rump of an industry that once covered several exhibition halls rivalling the Frankfurt and London book fairs, is now reduced to a few aisles in a single hall easily covered in one day.

To me, the booths were smaller, the visitor numbers lower, the aisles seemed quiet and the delegate ‘buzz’ felt decidedly restrained. However, products did appear a little less ‘trashy’; perhaps suppliers are more focused as a result of the downturn.

Such major industry shrinkage is salutary.  Publishers Weekly reported this year’s attendance as ‘flat’ with 3,722 delegates (against 3,739 in 2013), 1,520 of whom are classed as ‘Buyers’. To put this year into context; at CBA’s 50^th anniversary only 15 years ago, there were over 15,000 attendees!

What has happened since the heyday of CBA in the late 90’s, when the turnover of American Christian publishers hit $3bn?

Well, for one thing, the States are now a vastly different place to that of even five years ago. Evangelical churches are haemorrhaging numbers especially from its younger demographic. Churches are extremely exercised by how many young people are leaving. Barna Research suggests that 61% of ‘once churched-youth’ are now ‘spiritually disengaged’.  Politically, evangelicalism is not the force it once was (for good or ill, depending on your point of view), and as Philip Yancey observes in his forthcoming book, ‘Vanishing Grace’, American evangelical Christianity find itself on the back foot culturally.

The largest Christian product market in the world is clearly struggling to make the numbers work. This year ICRS was held in Atlanta, and next year in Orlando, Florida (28 June 28 – 1 July 2015). But where then? Those close to the decision-makers predict a much reduced fair with a smaller and possibly more relational format. A reinvention along the lines of the UK’s CRT event would seem sensible.

The plus point is that ICRS presents a really good networking opportunity and continues to work for the international community. I counted well over 20 Brits present in Atlanta and there were a good number of other nations represented. The weather’s better as well!

Several US houses were celebrating their own special anniversaries this year:

Baker Publishing Group; 75 years, Send the Light Distribution; 40 years, Harvest House; 40 years and Gospel Light; 80 years.

American Christian Publishing and UK Distribution

One publisher told me the talking point of the convention was the distribution situation in the UK.  US Christian publishers are in a state of considerable flux following the recent  upheavals in the UK, with the demise first of STL and more recently of TMD. Distribution infrastructure is therefore hugely reduced, and many US publishers currently find themselves without a home.

Those left – IVP, CLC, Marston, Norwich and JTD – have only so much capacity and the days of easily finding a UK distribution partner are gone. This is a disrupted market and likely to remain so for a while. What to do?  Ingram and Send The Light Distribution have been a good ‘second string’ for UK retailers for some time. This solution is likely to develop further, pulling in an even wider range of shops. However, for US publishers this is not the best solution, as it does little to satisfy their very real demand for wider title visibility and full range availability.

In the UK, distributors and wholesalers are still scrambling to cope with the continuing disruption caused by TMD’s closure. It’s unrealistic to take out around £2-3m of USA turnover from the supply chain and expect everything to sort itself out in a few weeks! In my view, the current situation has a long way to run, and it could be well past Christmas before anything remotely resembling stability returns. I sense that this approaching autumn sales period will be very challenging indeed. I further suspect that some well known American names will not actually find a home in the UK.

This market has changed so much in such a short space of time. However, let’s not kid ourselves as even in the TMD days, too much imported product was already chasing far too few buyers. In some ways, the new non-exclusive model of distribution may only make matters worse, resulting in a false sense of security. More product is being brought in, but the danger is of larger unit numbers simply sitting on even more UK warehouse shelves. These arrangements are unlikely to solve the broader problem. Traditional retail has contracted and online retail is far more demanding of the supply chain.

At the same time, we are experiencing HarperCollins Christian’s introduction of their New York mandated 360-supply programme, requiring that their Christian titles (Zondervan and Thomas Nelson) are sourced via the Glasgow warehouse. Those of us with longer memories will remember something similar from some while back; a move which resulted in the then HarperCollins Religious titles moving to Carlisle due to Glasgow being unable to cope! The jury is out on whether this will work again second time around. For our niche trade, with its requirement of the long tail of titles, especially from the Thomas Nelson Bible range, somehow I have serious doubts but I’m willing to be proved wrong. Anyway, it’s yet another piece of unhelpful trade disruption for bookshops and their customers to navigate at a time when all of us need as many sales as possible.

What does this all mean for the trade, whether publisher or retailer? In my estimation, further consolidation here seems highly likely, as well as even more upheaval to the status quo. We cannot under-estimate the scale of the unprecedented industry and market changes that we are presently living through. Retailers have been coping with this particular storm for years and now it seems its the turn of the publishing community to feel the heat. At the same time, suppliers have to deal with an increasingly bellicose Amazon demanding ever increased terms for doing business in the UK.

As many readers will know, I continue to remain positive about the future of the printed book despite the onset of digital product. The key risks to print sales rest with quality and content. For the retailer, selectivity is the name of the game, together with an ability to curate relevant books to appeal to a specific customer base. Long gone are the days when retailers, wholesalers and distributors would take everything a publisher produces.

Good relationships with customers, stock availability of key lines and fast, same day despatch are what count now.

The game has changed completely. Marketing and promotion remain the Holy Grail. Title discoverability is key. It is one thing getting a title into a warehouse; it’s another matter entirely to get that same title into the hands of the consumer. This point requires far more attention from all aspects of the trade; the Christian trade in particular has a way to go here. A total rethink to advertising and promotion is required.

I look forward to navigating the next set of rapids that lie ahead. Years ago, I particularly enjoyed canoeing through white water – which is just how the book trade feels at present.

Eddie Olliffe is Consulting Editor for Together Magazine.

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Book Trade: Amazon – ‘Industrial scale tax avoidance’

Unbelievable: Amazon UK have paid just £4.2m tax on £4.3bn of sales, described in the Guardian as ‘Industrial scale tax avoidance’.

Surely the time has come for publishers to stop supplying Amazon? If I owned or managed a publishing house, I would be reviewing any policy that involved selling to them. Some will say that this is totally impractical and unrealistic. I’m not so sure. Many publishers privately say that they hate doing so, but love the sales that come from them and that it is commercial suicide not to supply them.

I am increasingly of the view that publishers are utterly complicit in this unfolding outrage. They have always treated Amazon to far better terms and now, like a drug they cannot stop using, they are hooked on the need for bigger and bigger sales, albeit at higher and higher discounts. These are terms that stock-holding bookshops can only dream about. Only this week, Amazon in the USA are said to be punishing Hachette by slowing down despatches from their warehouse until better terms are extracted.

This situation is intolerable, unethical, unfair and unjust. It is killing the UK High street and wrecking many a local economy. Society overall is worse off as the country receives less and less in taxes. Utter, utter madness and all in the name of speed, price and convenience. It seems perfectly summed up in the phrase; ‘Knowing the price of everything and the value of nothing‘. Consumers and, I might add, publishers too are sleep-walking into a dependency on this monolithic and monopolistic giant. I hope that they feel it will have been worth it once there is nothing and no-one else left.

The daft thing is that there are some very good alternatives out there, Waterstones, W H Smith, Foyles and the Book People for general books, and for Christian titles; Eden.co.uk and other smaller Christian websites as well as the dwindling band of local Christian bookshops. The current call for a consumer boycott of Amazon is timely. We need to encourage as many of our own customers and friends as possible to join in.

Book Trade – Stock, stock and yet more stock

Working on Together magazine and through my involvement with CLC Wholesale, I see a huge variety of product. In fact, far too much product in my opinion. Publishers and distributors are continuing to push out new titles into a fundamentally changed sales environment and a shrinking physical market. This cannot continue. The economics don’t add up. Internet retail copes poorly with new product as recent debates over ‘Discoverability’ show. In my view, the jury remains undecided on whether the Internet will ever fully replace the ‘lost’ B&M sales from the many, many shops that have closed in recent years.

And yet still the titles keep coming. Suppliers have yet to react intelligently to such a radically changed marketplace. I doubt anyone can continue to keep publishing at current levels into an already saturated market. I fear further fallouts. Mergers could follow. Self-publishing is already making inroads into the traditional model and publishing is feeling the cold draught of reality. I applaud publishing start-ups, like Edinburgh’s Muddy Pearl, that are probably nimble enough to make it, but they too face an uncertain future.

There is way too much mediocre product, much of it destined to remain unread – a major challenge for authors as well as for publishers. Put simply, way too much is being published and a market correction is surely due. Publically quoted Lion Hudson PLC has taken a large stock write-down for two years running; £924,000 in 2013 and £550,000 in 2012 (Source: annual company accounts). Many other publishers have similar challenges providing for high levels of dead or slow-moving stock. Quite whether all are as strong as a PLC to cope financially with such savage action is a moot point. Over the longer term, publishers will profit from the shift to digital as they will benefit significantly from higher sales but with far lower stock management costs.

This summer, we caught a glimpse of what happens when a tectonic shift takes place. The Kingsway–DC Cook distribution upheaval has left a drastically altered landscape, especially for many USA houses. The reality has dawned that the UK no longer has the distribution capacity required to handle the vast amount of Christian product looking for a home. Not all of those suppliers originally with KW/DCC will be racked here again. Some are still looking; others have withdrawn from the UK. Distribution is not for the faint-hearted. It costs. Lots. Especially if you are intent on the deep stocking of all lines listed. Something has to give as the financials are becoming harder and harder to get right. New product is replaced by even newer product in an ongoing frenetic cycle – and then promptly forgotten. Ask yourself, how many of the recent titles you have been shown have ‘made it’ and are still earning their keep? In my view, the only way for retail to survive is to become ever more selective – to the severe frustration of publishers (and authors) who nurse the fervent belief that every one of their titles is both ‘key’ and ‘core’ to your business.

Where does this leave the Christian retailer? Those who survive will be those shops that choose stock wisely, prudently and are selective in the extreme. The game has completely changed.  For publishers to succeed, the key issue is ‘discoverability’ whereas for the retailer the absolute priority is ‘selectivity’. On what are you spending your money? No longer can it be about stocking anything and everything. To do so is impossible given such a huge product range and the relative size of most UK stores; insane given the investment needed in stock that could be here today and gone tomorrow; and unnecessary in a digital world which demands physical retail to be distinctive and unique if it is ever to make it through to the end of this decade.

I contend that selectivity and discoverability really do lie at the heart of this debate. You and I have the power to move the market if we truly believe in a product. The art is finding the book that really moves you to want to handsell it to as many friends, family, colleagues and customers as is humanly possible. When did a title last grab you like that? What was it? How good did it make you feel when it started to move off the shelves? My colleague, Chris Magee did just this with ‘The Circle Maker‘ (Zondervan). Its message touched him deeply, so he sent one copy to many of the retailers that CLC works with – and it remains one of their top sellers. Without such action, many books will sink without trace.

Most of us came into this trade to make a difference to people’s lives. Recommending – suggesting – handselling a title that has absolutely got to you is just the most fulfilling aspect of what we do. Hype and PR have no place in this trade and yet seemingly it’s all around us. Do we truly believe all the claims that we make for much of the product that we promote? Is it not high time we looked again at the ‘how’ and ‘why’ of the sale as well as our need to shift stock? In a few short years, we seem to have gone full-circle. There was a time when our shops were expected to stock in both width and depth. No longer; the new trading reality allows us to be ourselves and stock what we wish to sell, what we believe in and not those titles which have no place in our shops, as their claims are often far too spurious and their content questionable. It’s time for a rethink right across the trade on this matter.

Moving from the negative to the positive, I’d like to highlight a couple of areas that certainly warrant our attention – Children’s books and Bibles. I’ve written previously about the continuing growth in the sale of children’s titles, especially for the younger age group (pre-school and picture books are up 5.5% in five years according to new Nielsen figures). However, the one area that merits serious profile is Bibles. Sales continue to rise year-on-year. The appetite for Bibles seems to grow and grow. The range of styles and colours has never been as wide. Pink Bibles sell! This is the area that we do know about. It’s our specialism and no one can compete with us in our knowledge of the Bible market. Even the reinvigorated Waterstones doesn’t really cover this section that well.

Christian retailers know Bibles better than anyone (or at least I hope we do). Translations, bindings and fonts are what we do. It’s truly a skill to manage a good Bible department – and it pays off. This is the one area on which we must concentrate effort – through high stock investment, in-depth staff training and knowledgeable customer engagement. I’ve always enjoyed selling Bibles; that passion has never gone away. This is the one genre that makes this trade special – very special – distributing the very word of God is not given to everyone but you and I get to do it as part of our day job – wow!

Here are four stand-out Bibles that have impressed me this autumn. This is a personal selection (no publisher was involved in this choice!) but I would be proud to promote and handsell all of these Bibles to any customer (or friend) I might come across!

1. The NLT Wayfinding Bible (Tyndale House)

This is quite superb and is probably my favourite newcomer this year – a very clever use of colour and graphics enabling the reader to find their way through the complexity of the Bible by navigating via three clear ‘routes’. Love it.

2. The NIV Journalling Bible (Hodder Faith)

Of the various covers available, the black cloth hardback is my favourite. Journals sell well in all shops and spiritual journalling is increasingly popular. This Bible has a lot of journalling space. It feels great and is a welcome addition to the range – but I’d use a soft pencil rather than ink when writing in it.

3. The NIV Every Day with Jesus Bible (CWR)

I loved the imaginative marketing campaign on www.onebible.co.uk Check it out. Selwyn Hughes’s hugely popular notes, allied to the Anglicised NIV 2011 text and presented in a chronological one year reading edition make this a ‘must-have’ stock item.

4. The ERV Youth Bible (Authentic)

At last – the text and notes in this perennial youth market best-seller have been completely reworked. It’s good – very good – and for a while at least, the price looks unbeatable. Impressive, and it’s good to add such a fine looking Bible to the shop youth section.

This article was written in late October for Together Magazine (December 2013 to January 2014)

Book Trade – Booksellers Association Conference 2013

Here’s a flavour of the delegate sessions (lifted from my Tweet stream) at last week-end’s very positive Booksellers Association annual conference held over 24 hours at Warwick University, near Coventry, England.

Sunday 22^nd September

• Heading to #BA13 Warwick this w/e. Should be good fun, representing #CLC Bookshops. Trade is on top form after success of @booksaremybag

• So warm. Like a summer’s day here in Warwick. Actually l think we’re probably nearer Coventry. Good to catch up with old friends. #BA13

• Great start to #BA13. Warwick is almost tropical. Excellent Bookseller debates earlier: Thx @unicorntreebks @storytellersinc & Andy Rossiter

• #BA13 ‘Selling’: three fast-paced practical cameos – Effective selling online, Maximising Christmas sales, Promoting books to schools

Monday 23^rd September

• #BA13 underway in Warwick. 250 delegates in conference. Sense of positive energy palpable this a.m. @booksaremybag judged a big success

• #BA13 68% of people prefer to discover books in physical shops. Discoverability is key. Need to place emphasis on physical environment

• #BA13 James Lowther: Shop environment – more sofas, cafe/coffee/wine, singles night, in-store book clubs. Employ best people you can

• #BA13 James Lowther: Shop loyalty is created through having good staff. Important to have an ability to sell without hassling customer

• #BA13 James Lowther: Amazon is not going away! If you can’t beat them … digital interaction and information gathering is vital in-store

• #BA13 James Lowther: Keep @booksaremybag going. Use your shop, your window, your counter. Use big bold messages. Not end of the campaign

• #BA13 Neil Best/Waterstones: Your brand can be defined as what your customers think of your bookshop. It’s their experience of YOU

• #BA13 Neil Best/Waterstones: Best search engine is you, the bookseller. Curation of stock should be an expression of bookselling skills

• #BA13 Jo Henry/Nielsen:Data suggests that ebook sales are plateauing (consensus emerging). 7 in 8 books still bought in physical format

• #BA13 Joe Henry/Nielsen: Why people buy from bookshops? Strong evidence of impulse purchase. 1 in 4 bookshop purchases are pure impulse

• #BA13 Jo Henry/Neilsen: Bookshop strengths: curated stock selection, customer ability to browse stock. Note scepticism of online reviews

• #BA13 Miriam Robinson/Foyles: Onus should be on bookshops that empower customers to do discovery for themselves, not spoon-fed reviews

• #BA13 Keith Butler/Easons: 60 shops across Ireland. Books equal 50% of turnover. Challenges of past 5 years; economic + trade volatility

• #BA13 Keith Butler/Easons: Changing the face of Irish bookselling. New shop design implemented in Cork and Belfast. New bright colour scheme

• #BA13 Keith Butler/Easons: In an Internet age, range is no longer the key selling point in-store, it’s now all about relevance to the customer

• #BA13 Bill Bryson closing keynote: It’s a great chance for me to say thank you to booksellers. Keep going and don’t quit!

• #BA13 Thanks to @BAbooksellers for an excellent conference; full of warmth, great information & practical advice

To sum up – as I posted on Facebook yesterday:

‘Just back from a brilliant Booksellers Association conference in Warwick over the weekend. Good to spend time with Melanie Carroll and John Keble amongst others. Good energy and a positive buzz, much of it down to the very good ‘Books are my Bag’ Saatchi campaign. People are now talking about AA (after Amazon) i.e. in the the sense that Amazon, digital and ebooks are a reality and here to stay so we need to get over it, move on and go for the sales that are still there for those who are adapting in order to do business in the new environment. It’s now very clear that whilst Amazon is not going away, neither is the independent bookshop sector. The evidence of the weekend is that we are a hardy lot! I agree with Melanie that it would be good to see more of our Christian colleagues at the event. Sometimes our niche works against us and makes us look like we inhabit a religious ghetto. I learnt a lot and was very glad I attended’. 

Book Trade – What Future for the Christian Book Trade?

As I write, the fallout from the Kingsway – D. C. Cook distribution decision remains unclear. What is clear is that we are facing yet further consolidation within the distribution sector. Change is unsettling and disturbing and we should say a prayer for all those affected by it.

I benefitted much from reading Steve Mitchell’s (m.d. Authentic Media UK) closely argued seven-page monograph, What Future for the Christian Book Trade?, published as the lead article in the quarterly journal, Faith in Business (available online, £2).

I greatly admire Steve’s ability to look forward, assess future direction and consider those aspects of this trade that many of us would prefer to leave well alone – in short, to cause us to think. Melanie Carroll described the piece as ‘honest and insightful, and as such not without elements of controversy and pain for all elements of the trade’. Steve wrote it as ‘an academic article aimed at church and business leaders explaining the issues facing the Christian book trade’. 

I was particularly encouraged by Steve’s statement – cited twice in the text – that ‘the majority of books are still sold in a physical form from physical retailers’.  I was struck by his examination of the ‘disloyal consumer’ and the stark observation that ‘publishing is likely to see the cold wind that has blown through the retail world enter its domain’.

Yet the essence of the Gospel remains unchanged. Tom Wright in his New Testament for Everyone translates Romans 16:25-26 as,

‘Now to Him who is able to strengthen you according to my gospel, the proclamation of Jesus the Messiah, in accordance with the unveiling of the mystery kept hidden for long ages but now revealed and made known through the prophetic writings, according to the command of the eternal God, for the obedience of faith among all the nations‘.

Quite a task – and still this remains our mandate.

There remains compelling content for us to distribute, albeit in what are now differing and changed formats. What has been described as the historic Guttenburg to Google Revolution is playing out in our own lifetime. Parchments were then turned into printed books and these are morphing in shape and feel into digital content. Quite what all this means for us as a trade is still being worked through but I found Steve’s article to be an eloquent resume of these hugely important issues and highly commend it.

Seek first the Kingdom and …

Increasingly I have come to accept that spiritual insight stands worldly wisdom on its head.

The Bible says ‘God chooses the foolish things of the world to confound the wise and the weak things of the world to shame the strong’. How we hate this. It’s not very cool and gets little recognition from the secular movers and shakers. For our part, we chase after professionalism and eschew the amateur. We love to be seen as wise, hating to be foolish. I was brought up short by the sheer impact of this statement in Henri Nouwen’s book, In the Name of Jesus,

‘My own thinking about Christian leadership had been affected by the desire to be relevant, the desire for popularity, and the desire for power. Too often I looked at being relevant, popular and powerful as ingredients of an effective ministry. The truth, however, is that these are not vocations, but temptations’.

These truths are as important for us in business as they are within the Church. As a trade, we should be even more profoundly aware of them. All our business plans and strategies are of little significance in the light of the deeper principles of the Kingdom: ‘Seek first His Kingdom and all these things will be added to you‘. Other ministries and practices which we judge, sometimes harshly, as ineffectual may be, in the economy of God, quite the opposite. If they result in the spiritual turnaround of just one person, they will have been worthwhile.

In my experience, we tend unconsciously to turn this verse around and to do our adding up before any seeking of the Kingdom. Business culture and worldly practice rears its ugly head and takes us in another direction entirely and we think that our ways are the best ways – they are not. The wisdom of Scripture should be rediscovered for the way that we do business. I have a small plaque hanging in my office recording the words of a captain in one of the Roman legions, discovered in the Libyan Desert; ‘I have learnt and pondered this truth: there are in life but two things to be sought, love and power, and no-one has both’. 

All of this is far easier said than done, particularly in the inevitable pressures of the moment. We probably accept it in our hearts but our heads overrule the idea as naive, one which is unworkable in the day-to-day. In the end, God is left out and we then wonder why we flounder! Brennan Manning wrote in his book, A Glimpse of Jesus:

‘The glory of Christ lies in this … He has called forth disciples to come after him … they are ‘marginal’ people, not part of the scene, irrelevant to ‘the action’. In their ministry of quiet presence they do not need to win or compete. The world ignores them – but they are building the Kingdom of God on earth’.

Someone said to me recently: ‘We are where we are to do the work God has called us to do’. In this trade, this is so true. Calling is critical. It clarifies both purpose and direction.

Just how many Christian trade outlets are there?

This is the one question guaranteed to be discussed whenever book trade people get together. It’s a question with no simple answer because it depends on what you actually mean by ‘outlet’. It’s also compounded by issues of theology, inclusion (who’s in, who’s out) product type and definition.

The most accurate place to go for answers, however, is the UK Christian Bookshops Directory. This has been a labour of love over several years for webmaster, Phil Groom; to whom this trade is deeply indebted for what is a magnificent and free resource. I thought it would be fun to delve into the detail and pull out some of the facts from this archive.

The UKCBD County Index lists 462 Christian trade outlets including London (as at 30^th June 2013).

The largest concentration of trade outlets is Yorkshire with 29 listed, followed by London 27, Kent 20, Devon 14, Glamorgan 14, Hampshire 13, Surrey 12, Sussex 12, Cambridgeshire 11, Somerset 11, West Midlands, 11 Dorset 10 and Lancashire with 10.

In terms of the UK regions; Scotland (including Highlands & Islands) has 43 outlets, Northern Ireland 25, Wales 37, Islands (CI, IOW, IOM) 5, Northern England 86, Central England 91, East Anglia 32, South West 42, South & South East 74 and London with 27.

Christian trade outlets exist in hospitals and café’s, in abbeys and cathedrals, in city missions and conference centres and in traditional denominational settings. One internet retailer is listed: Christian Bits, Haslemere and there are a number of chain booksellers on the list: Quench, St Andrews, Pauline Books & Media, Faith Mission Bookshops, CLC Bookshops and the Blythswood group.

One question is what proportion of these shops operate from church and cathedral premises rather than from the high street or market stalls. 42 of the shops listed here are within church premises, some of which are full-feature shops such as Origin, Woking, but some of which are probably more akin to large bookstalls. This raises the hoary old query of ‘when is a trade account really a trade account’.

The Cathedral and Church Shops Association has 120 members. However, only 29 Cathedral shops are listed on UKCBD, some of which are no doubt far more focused on souvenirs and gifts than on books, once again highlighting the debate in terms of what type of outlets should be included in our definition?  Part of the problem is the perceived (and perhaps actual) decline of the traditional High street Christian bookshop. Reports of such closures are seemingly constant and rumours circulate on a fairly regular basis of shops that are about to close.

The periodic Bookseller Association numbers bear out the brutal fact that bookshops are indeed closing at a rather alarming rate. However, what strikes one in reading though this data is that there is a great deal of creativity out there when it comes to making Christian resources available. Long may this be the case. Perhaps trying to categorise outlets in some way or other is counter-productive. Rather, maybe we should simply celebrate diversity and variety, recognising that so many areas actually do have Christian materials available, often in the most surprising of places.

In closing, let me hypothesise, using the data, in terms of the probable numbers of High street Christian resource centres. The best estimate seems to be around 300 shops trading as part of the traditional high street. Of these, possibly around 200 to 225 are doing the type of business which could ensure a sustainable future. Massive challenges face these shops, most obviously the internet and digital content, but not least the matter of demography as many of these owner/operators come up to their retirement without necessarily having any succession plan in place.

In terms of visibility, the trade no longer has a fully obvious High Street presence across the country. Christian resources are not as widely available as they once were. Sadly, there are entire cities now without any Christian on-street presence.  In my view and given this situation, digital activity on the part of Christian online retailers such as Eden Interactive or Christian Bits is to be welcomed if we are to continue to reach out to this nation with quality Christian material. The irony could be that Christian resources are actually more accessible now given the ubiquity of the internet, but that’s a debate for another time.

This article was written in early July for Together Magazine (August – September 2013)

Book Trade – Reconnecting with the Local Church

In a previous post, I touched briefly on the tricky matter of church / retailer engagement. We return to it here to examine this important topic in more depth.

Many shops are struggling to communicate with their church leaders and ministers. An earlier church / retail compact has seemingly broken down as leaders shop around – usually online – driven by ‘best price’ owing to their Churches’ own financial constraints. Retail managers struggle to venture outside of their own premises due to low staffing levels or sometimes, unwillingness. And yet, somehow, retailers must be in touch with their core customer base – the Churches. 

Earlier this year, I oversaw a fairly small-scale Christian retailer survey, attempting to draw out the very real concerns that cause such difficulty in the area of contact with their local congregations. Here in order of priority are the main barriers given by retailers for failing to engage with their local church communities and ministers.

The number 1 reason cited in the survey was the Managers’ own lack of time and the overall busyness of their shop, followed closely by:

• Low levels of staff cover and an over-reliance on volunteers
• Lack of interest and support for the bookshop by their local churches
• Ministers opting to order online for reasons of convenience and price
• Stock limitations due to differences in theology across the denominations
• Churches going direct to suppliers owing to better terms on offer
• Ministers and leaders themselves too busy to visit their local shop
• A fear of the unknown – the concern of how best to approach a church leader

Do any of these reasons resonate with you? If so, how can you manage this aspect of trade more positively? One thing is certain; we must not sit back, throw up our hands in despair or give up. Other retailers’ experience shows that, whilst it is clearly hard work, it is still possible to build good business links with local churches.

35 years ago, when I first started in bookselling, support for their local Christian bookshop by the surrounding churches was unquestioned. It was a given. The churches themselves saw the bookshop as the partner in their own local mission. Support was therefore an imperative. The success of my then small community shop in rural Gloucestershire was largely down to the custom generated by their weekly bookstalls and regular bulk sales.

I was hugely favoured from the beginning by that indomitable champion of the Church Bookstall, Beryl Goodland at the local Baptist Church in Gorsley.  Lion Publishing was just getting underway and Beryl was at the heart of the book scene at that time. I’m quite sure that without her dogged support for me personally and for the shop, it would not have enjoyed the kick-start that it did. This then-large congregation was the closest I think I ever got to working with a mega-church! Beryl was the best advocate anyone could have had for selling books via the Church. I realise now just how fortunate we were to have had such impressive support.

This point underlines the importance of having a ‘Champion’ on board in each church for your shop, and in most cases it’s usually not the minister. One key is to seek out and identify those champions in each congregation and start to work with them. Keep close to them, make them feel special and ensure you look after them well.

Church support for the local bookshop is no longer as clear cut as it once was. Churches themselves are struggling and having to shop around for best value. Ministers and leaders are pushed for time and can no longer provide the link and support that is the lifeblood of the local shop. Bookshop staff have themselves lost out by not always realising just how much the scene has changed – and they have largely failed to change with it. Many of us appear to have lost the art, desire and capability to get out into the community to network and connect with churches. Times have indeed changed and the church / shop compact as described above is no longer in place … or is it?

Some would argue that the link is most certainly still there but that it’s just different. Partly it’s down to education – on both sides. Churches need to be helped to understand and value their local resource centre and shops need to understand the new market reality and the very real pressures on church leaders. Partly it’s down to societal change; 30 years ago the internet did not exist and mail order was a poor second option to the shop. Churches themselves valued books and resources in a way that they perhaps do not now. Leaders would recommend books during their sermons and from the pulpit, far more often than appears to be the case nowadays. Are Christians reading as much anyway and how do churches decide what is best for them to study in a time of so many competing voices? Many congregations now have access to the technology and the wherewithal to produce their own materials, thus bypassing both publishers and booksellers. This change has particularly impacted and disrupted the daily reading notes and home group study market.

Rather than bemoaning the situation, retailers have to change. We simply must become more proactive in making contact with local ministries. New ways of engaging with local congregations must be found in order to introduce resources into their spiritual lives. It remains a truism that personal recommendation continues to be the single best way of selling a book to a customer – and in this case to a whole church.

Happily, there are a number of exciting initiatives taking place around the country that do just that. It takes effort, time and, I suspect, will demand ever more change to the way the shop is both staffed and operated.

Nigel Cope of the Christian Book Centre in Preston, quoted in the preview issue of Together magazine, estimated that around 12% of his business now came from outside of the shop. His one single piece of advice was “Don’t wait for people to come into your shop, go out and find them and serve them where they are“. Nationally, CLC Bookshops are more and more committed to running external events and have ramped up their own activity in this area recently.

I recently spent time with Bob and Sandie Clark at the Christian Resource Centre in Eastbourne, runners up in this year’s ‘Small Independent Retailer of the Year’ award. In the two years the Clarks have been involved, the business has been turned around and turnover is slowly on the rise, largely due to a stated policy of spending time with ministers outside of the shop. Bob, an experienced and seasoned publisher’s representative, is specifically tasked with building up these external relationships – and clearly has the skill-set to do this extremely well.

CRC is part of Churches Together in Eastbourne but when the Clarkes commenced in 2011, there were active relationships with just two churches. Bob diarises each Thursday for networking with church leaders, fitting in five to six visits during the day. Using his earlier repping model, he views his role as relating, as well as selling, to churches.

The Book Box Scheme is CRC’s main promotional thrust. This scheme is based on one pioneered by Pam Brittle at Choice Words, Newton Abbot. Book boxes are supplied lidded and the selected product is all provided on a see-safe basis. Some boxes are brought back to CRC by the church for resupply; others, Bob will replenish himself on a subsequent visit. CRC now have around 18 churches in the scheme – and it’s growing – with the goal to reach 50 boxes by this Christmas.

They also operate the Big Church Read introducing one title per month to each of their partner churches. These schemes work via a Church Champion and not through the minister or leader, although permission is always sought first. Making the contacts and building relationships takes up a good deal of Bob’s time and he says that it still remains a challenge and a struggle to get support from the local church community.

So what are the main keys to success in engaging with churches?

(1) Tenacity, patience and perseverance – plus a solid and workable game plan!

(2) Finding a local ‘resource champion’ in each congregation to work with you. Make sure you get the minister’s agreement first but accept that it may not make sense to work solely with the minister as he may wish to delegate the role to someone you both trust.

(3) Network – network – network. If necessary, alter the way you operate the shop in order to find the time to do so. For example, would shutting the shop for one day or one morning or an afternoon a week or month bring more benefit to your trade than simply staying open on an otherwise dead day?

(4) Research your locality thoroughly and recommend relevant resources to your constituency in a positive, pleasant and non-demanding way.

(5) Help your local ministers to keep up to date with what’s new and what’s selling in the wider overall context. So many leaders are notoriously out of date in their own reading and book / resource knowledge.

(6) And please … do not use the lack of time or staff as an excuse to do nothing. That way you may be sleep-walking to disaster. Find a way. Be creative. The local churches do not owe you a living – you still have to work for it!

We’d love to hear from you on this subject. Send in your own thoughts and the practical ways in which you have sought to address this area of your work. We’ll then share your wisdom with others through the pages of Together. May God bless you in all aspects of your shop’s ministry.

This article was written in mid May 2013 for Together Magazine (June – July 2013)

Book Trade – Photo Record: London Book Fair 2013

For those in the trade unable to attend London Book Fair this week, here are some of the images of the past few days.

Turkey was the Country in Focus for this year’s Fair.

 

The Books are My Bag national promotion was launched this week.

Kobo ereaders had a major and impressive presence at this year’s fair.

Monday was a very busy day at the Fair this year with very full aisles.

Book Trade – Trends in the Wider Market

Canadian retail blogger, PaulThinkingOutLoud was upset recently by one publisher’s website and its aggressive discounting policy. Writing in his blog – which is well worth following – he saw this as

 ‘Another example of a publisher or distributor bypassing the brick and mortar stores. Although some of this might be legitimate overstock inventory, it raises the expectation of consumers for this level of discounting to be normative, which adds to the discouragement of already battered retailers’.

In another post, Paul writes movingly of competing emotions during the closure of one of his stores. He ends with an appeal to press on towards the goal of in-store ministry.

Do you feel battered by falling sales or emboldened by spiritual opportunity? Yes, Christian bookshops continue to close, footfall is in decline, competition from online is savage and at best support from churches is patchy. Yet we are not always that well informed of current trends in the wider publishing scene. In the same way as what happens in the USA often affects the UK, the same is true of events in the general market impacting the Christian trade.

Generally speaking, our grasp of the financials on both ‘sides’ is often lacking. Retailers operate on lower margins with high fixed costs (upward only rents, rising business rates – up 2.6% again in April) whereas publishing in the main has higher margins and a far more flexible cost base. Clearly there are worries on all sides and as publishers face lower physical sales, print-runs continue to fall making the viability of mid-list titles ever more tenuous. Many publishers struggle with storing high levels of physical stock, much of which will eventually be written-down. Ironically for publishers, digitalisation represents yet more cost and a growing overhead; this, coupled with falling average cover prices (ebooks sell at half the average price of a paperback: £3.21 v. £6.31).

Our industry is a torrid place. The physical consumer book market declined by 4.6% in value in 2012, with fiction down 4.5% and non-fiction down 6.3% – only Children’s books held steady. The value of print sales slumped by £74m last year. (It could be worse – in Australia their market fell 6.3%). The marketplace churns violently in a volatile landscape; over 200 libraries were closed between 2011/12 and in another sign of turbulence, Cambridge University Press ceased print production on their Cambridge site after 400 years.

Yet 2012 saw the continued growth in digital publishing, social media marketing and self-publishing. Hive became established. Amazon’s Kindle grew faster than ever and a number of other e-readers, notably Nook, Kobo, and Nexus gathered momentum. Controversially Waterstones began to sell Amazon’s Kindle, recognising that they had neither the time nor money to develop their own platform. The Fifty Shades publishing phenomenon came out of nowhere ending the year with sales of £47.3m.

The market for ebooks was revised upwards to £300m late last year and continues to grow, albeit more slowly. Major publishers report e-sales of between 8% and 17% of overall revenue. In November, the ebook agency price probe in the USA and the EC brought a chill to the major houses as they battled against what felt like unfair external pressures. Now ebooks sell for an unsustainable 20p (a marketing idiocy pioneered by Sony) and most slots in the Kindle top 20 are populated by cheap ebooks. Nielsen data suggest that there are 7m UK ebook adopters, with heaviest use amongst ages 35-44, lowest in the under 20’s. However, the BBC reports that just as many UK adults, 7.4m or 15% of the population have yet to access the Internet.

Bookshop closures continue apace with The Booksellers Association figures documenting ongoing decline: down to 1,028 shops (2012) from 1,535 in 2005 – conversely Children’s bookshops are thriving with more opening this year. In the USA, the one surviving major bookstore chain, Barnes and Noble announced after Christmas that they expect to slim down store numbers by a third. B&N have 689 stores currently with 190-240 of these slated to close over the next decade. It’s a widely held view that the holy grail of ‘Discoverability’ is best achieved in a physical bookshop; browsing activity is their USP.

The debate over the future of our libraries is equally as fierce. The UK Government’s Sieghart ebook library lending review is yet to report but author, Terry Deary said recently: ‘Libraries have had their day. They are a Victorian idea and we are in the electronic age’. How to win friends! It’s worth noting that the PLR on printed books from library lending is more than £6m paid out to 23,000 authors. The debate remains live as people continue to ask if digital will trounce the physical book or whether in due course it will all settle down benignly?

There’s a lot of anger amongst booksellers towards the perceived lack of a level playing field. Writing in The Bookseller, Charles Tongue of the Stroud Bookshop said, ‘I believe Publishers are blindly colluding with Amazon and the result will be the destruction of High street retailing’. He was widely applauded.

I like Foyle’s of London advertising slogan; This Bookshop Will Change Your Life – no ambiguity there! Earlier this year, Sam Husain, CEO of Foyle’s sent an open letter to publishers arguing the need for better terms (an average of 60%) and increased support (promotional stock on consignment). He stated that the current bookshop model is broken, needing a complete rethink. This at a time as Foyle’s announced eight redundancies. Bravely, Foyle’s and The Bookseller have since conducted a two-day ‘Re-imagining the Future Bookshop’ workshop, held in London, allowing the trade to collaborate on what the bookshop of the future might look like. 

WH Smith continue to do a sterling job in showcasing books but even their sales fall year on year; down 7% to the end of August 2012 and down a further 6% in the 20 weeks to mid-January 2013. Another indication of the parlous state of the High Street trade is wholesaler Gardners sales results which dropped 3% to the end of February last year. Blackwell’s did improve their results last year but remain loss making.

Waterstones is far from being out of the woods with the release of poor results (admittedly pre-James Daunt) showing a £37.3m loss. I wish Waterstones well because if their 290 branches were to disappear from the High Street then it would be a very serious matter, and I might add, particularly for publishers. However, I’m encouraged for two reasons: anecdotally, people seem very warm towards the ‘W’ brand and some are switching their buying away from the mighty ‘A’. The question is, will it be enough? Waterstones iconic branding campaign last autumn was well received and this year it has plans for the refurbishment of another 60 shops.

My other reason is that when I visit Waterstones, they generally prove to be busy places and people are markedly buying books. It’s just a shame that Waterstones do not ‘do’ Christianity better and with more visibility. On a positive note, I welcome the announcement by Waterstones of the launch of its staff-training academy and Certificate in Bookselling (accredited by the University of Derby); surely a vote of confidence in its own future by a visionary book chain?

Maybe I’m pipe dreaming? After all, Amazon had overall sales in the UK in 2011 of £2.91 billion (on which they famously paid £416m UK tax). They reported Q4 worldwide revenue growth of 22% to £13bn last Christmas! Latest innovations include customer collection lockers in railway stations and newsagents. This is an immensely powerful online juggernaut and our small trade faces a very significant challenge indeed!

Yet I dare to believe that localism can prevail, customer attitudes can change and that people continue to care about their local shops – you must just hope that I am right! The demise of retailers, Jessops and Blockbuster earlier this year followed by HMV going into administration shows just how tough conditions are. Incredibly, HMV was selling 27% of all CD’s and 38% of DVD’s at the time of its demise.

I would echo Philip Downer’s (ex-Borders) comment from last year;

 ‘The old days of Borders and Ottakars will not return … Coffee, carrot cake, cards and an ebook offer are now essentials for Indies who want to stay in business and thrive for the future’. 

We have to give customers a reason to come to our shops. Why should they shop with you? I was recently handed a forward-dated 15% off voucher for a national (non-book) retailer. It worked. I visited the shop on the stated date, I used my voucher … and I bought far more than I had intended. In the Christian trade we must start thinking more creatively and connecting with customers in a very different way to the past.

Church engagement is a hugely important topic that needs far greater attention and one to which we shall return in the next issue. Many shops find difficulty in communicating with ministers. An earlier church / retail compact has seemingly broken down as leaders shop around – usually online – driven by ‘best price’ owing to the Churches’ own financial constraints. Managers struggle to venture outside their own premises due to low staffing levels or sometimes, unwillingness. And yet, somehow, retailers have to get back in touch with their core customer base – the Churches.

The days of waiting for a church to contact you are long gone. It’s often a salutary task to record daily footfall and till data – but it may just serve as the severe jolt you need in order to take action?

This article was written in early March 2013 for Together Magazine (April – May 2013)

Christian Book Trade – CLC Bookshop, London: a photo update

Today I visited the CLC Bookshop in Ave Maria Lane, London, adjacent to St Paul’s Cathedral and just off Ludgate Hill. The shop moved here from much bigger premises on Holborn Viaduct in August 2011.

CLC London is now the largest Evangelical bookshop in England and is run by CLC, an interdenominational Christian charity, now operating in 58 countries with 180+ bookshops around the world. CLC began its work in Colchester in 1941 and its London presence has been in this area of the capital since the first shop opened on Ludgate Hill in 1946, just after World War 2 ended.

The nearest tube station is St Paul’s (Central Line) and from there it’s literally a five minute walk through Paternoster Square across to the shop. Pater Noster (Latin) means ‘Our Father’. The Square lies near the top of Ludgate Hill, the highest part of the City of London.

This area – originally Paternoster Row – resonates with the history of publishing houses and booksellers as, in the 1940’s; this was the centre of the British publishing trade. In December 1940, the entire area was devastated during the London Blitz – but miraculously St Paul’s Cathedral was saved. An estimated 5 million printed books were lost in the ferocious fires caused by the bombing.

Emerging from Paternoster Square into Ave Maria Lane (I love the name of this street given the theological predisposition of CLC!), the first building you see is a well-lit and well-signed modern bookshop  – but leaving no-one in any doubt that this is a ‘Christian bookshop’.

I still mourn the closure of the Scripture Union / Wesley Own shop in London’s West End at Wigmore Street. As the book market changes and the European recession continues to bite, bookselling in our towns and cities is changing markedly and the world of Christian bookselling is no different.

I applaud the efforts of Manager Petra Nemansky and the CLC team who are doing such a sterling job in increasingly difficult times. I hope that the shop will go from strength to strength as the very last thing that London needs is the demise of yet another well located Christian bookshop.

Please pray for the important ministry of this shop, only a stone’s throw away from the buildings of the London Stock Exchange and if you’re in London, especially if you are anywhere near St Paul’s Cathedral, please do visit the shop – you will not be disappointed.

 

Book Trade: Pressing Issues facing the Trade: The PA Year Book 2011

Last week the deputy editor of The Bookseller described the Book Trade as ‘Bystanders watching a race that began before we were ready’. Is this apt or just plain wrong? He was writing about the global growth of the e-reading market where the statistics continue to astonish and possibly frighten us in equal measure.

The Bookseller postulated in its leader that same week; 50/50 digital-print parity could be with us by 2020. It also posed the chilling question, ‘How many Indie and chain bookshops will remain’? 

Why such gloom? Well, the Publishers Association had released its 2011 Yearbook, containing all the sales value and unit numbers for last year. You’ll need a strong stomach to read this as for most printers, publishers and terrestrial booksellers it makes for grim consumption. On the other side of that particular coin; for self-published authors and for publishers in the eBook market, particularly in Romance or Horror, the future looks very bright indeed. In 2011, digital accounted for a sharply growing 8% of the book market.

Physical book sales declined 4.8% to £2.9bn but when you factor in the growth of the e-Market (up 55%) at £243m, the overall decline falls to 1.9% (at £3.2bn). This represents the first drop in total book sales in more than three years – not the best place for the industry to find itself. When you take inflation into account, this fall is actually much more serious. We are going backwards, not forwards. Even export sales fell, declining by 3% (£1.2bn). It’s worth noting that exports remain almost a third of all UK invoiced sales.

Sales of print fiction – the largest category of print falling victim to the e-Reader – dropped over 10% in the year, a loss of £57m. e-Fiction popularity grew strongly to £70m but by not quite enough to cover the losses in print. Non-Fiction and Reference also fell (down 4%) but these categories were not compensated at all by additional digital sales. In fact, all print categories declined apart from some growth in School and ELT sales. The value of Children’s book sales fell by 8% on the previous year (post-Twilight).

According to the commentators these are now the pressing issues facing our trade:

(1) The speed of digital migration, (2) the vexed question of ‘discoverability’ (and the related importance of browsing in a physical shop), (3) whether DRM should or should not be embraced by the industry (with strong views either way), (4) the growing dominance of Amazon and (5) the steeply falling price of eBooks online, thus devaluing books in general.

Oh, and it’s raining as well!

Note – the PA figures as published here often differ from the Nielsen BookScan figures for the UK book market. Both are correct but each takes slightly differing approaches when compiling the data – apples and pears spring to mind.