The Bookseller.com

2nd December 2008

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Tough market strains chains

11.06.08 Graeme Neill

Book chains have confirmed that trading is tough, after figures showed book sales fell for an unprecedented four consecutive weeks in May.

According to Nielsen BookScan, the UK Total Consumer Market declined year-on-year between 4th and 31st May—the longest fall since the TCM came into existence in 2001. In the last week of the month sales fell by 3.5% compared to the same period in 2007.

Rachel Russell, business unit director for books at W H Smith, said she expects a “tough summer” after the high street business reported a like-for-like sales drop of 3% for the last quarter (the 13 weeks to 31st May), At the WHS travel division like-for-likes were up by 1%.

“We had a very strong April, and May fell off slightly in line with the market,” Russell said. “June is looking very promising for fiction driven by new releases. We are expecting a tough summer based on comparisons to last year, but summer sales are very weather dependent, so it’s all to play for.”

Michael Shakespeare, m.d. of British Bookshops and Sussex Stationers, said he was “pessimistic” about the next few months. He added that plans to revamp stores to drive sales would be unaffected by last week’s announcement that the leases for seven shops were on the market.

However, in the first week of June the TCM rallied to grow 1.8% year-on-year. Waterstone’s m.d. Gerry Johnson said the chain had been buoyed by titles such as Devil May Care, Sepulchre and The Forgotten Garden. “It’s tough for everybody but we have done very well in recent weeks.”

Borders’ UK c.e.o. Philip Downer said books were “more robust” in an economic downturn. “But it would be foolish if we weren’t worried about the wider economy.”

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