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Chains positive over Christmas

10.01.08 Graeme Neill

Chain booksellers enjoyed a positive Christmas despite increasing concerns about the rest of the high street, according to a Christmas trading survey conducted by The Bookseller. Although HMV and W H Smith have yet to issue their Christmas trading statements, Blackwell said that it increased its sales, while Borders recorded a "satisfactory and respectable" Christmas. Meanwhile, Woolworths said that it "achieved some exceptional market shares on key titles".

Borders commercial director David Kohn said the chain produced like-for-like sales growth over the Christmas period and maintained its market share. "In the context of what we think the internet has done we are reasonably pleased with that." Discounting did occur instore but Kohn said it was handled "intelligently".

Vince Gunn c.e.o. of Blackwell said it had increased its sales this Christmas: "When you compare [our Christmas] to what has come out from the rest of the high street I am very pleased. It's not outstanding but we are in a positive standing compared to last year and the year before."

Gunn said that while books bucked the wider woes facing retailers this Christmas, there would be a greater squeeze on consumer spending during 2008. "Because there's less disposable income out there, people are being more careful with their cash," he said. "We are not just competing with other book retailers—it's everyone."

He pointed to Blackwell's online business, driven in part by the Reserve Online, Collect Instore service, as a key performer. The retailer also gave a heavier push to its Christmas catalogue this year, making it available online as well as instore.

"There wasn't really a single big book," said Gunn. "Titles like The Uncommon Reader, How to Fossilise Your Hamster, The God Delusion and Where's Bin Laden? all did well. We were pleased with the spread of titles across the board."

Woolworths book buyer Matt Bridge said: "Books performed well over Christmas and we achieved some exceptional market shares on key titles." He said the retailer's bestsellers were titles by Richard Hammond, Russell Brand, Sharon Osbourne, Ewan McGregor, Jeremy Clarkson and Lewis Hamilton.

"These were viewed as not a good fit with our demographic but the sales proved the wide diversity of Woolworths customers and how many we can reach on the high street," he said. Bridge said that Woolworths' success was driven by giving customers "great value on the biggest titles", as well as by upping the profile of books instore.

Bridge added that the chain wanted to establish itself as a "major player" in the books market in 2008 after giving books their highest profile in store for years this Christmas. "We needed to be competitive with the other high street retailers and cement our great value position in the minds of the Christmas shoppers. We chose to price or deep discount our 'Big Deal' book each week to great success," he said.

Despite the wider high street gloom, Kohn added that Borders had made a good start to post-Christmas sales. "We've been trying to minimise returns and clear as much volume as we can with the help of publishers. It's a good revenue stream for us and reduces returns so it's good for everybody." Kohn said the chain, which was decoupled from former parent Borders Group last year, was "as strong as it has ever been".

"The stores are looking strong as ever and we have good plans in place to drive revenue and profit," he said. "We are cautiously confident." Borders plans to revamp its commercial website during the spring, with a new site to launch by May at the latest. "A lot depends on the success of our internet venture but we would certainly be looking for a maintenance of our current market share," said Kohn.

Retail W H Smith woolworths Borders blackwell HMV Graeme Neill Christmas

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