The Bookseller.com

2nd December 2008

Borders on bullish form as publishers worry

01.08.08 Graeme Neill

Borders UK c.e.o. Philip Downer has given a bullish assessment of the retailer’s performance in the first six months of 2008. Meanwhile, publishers have expressed concerns about buying team changes.

In a letter to publishers and distributors seen by The Bookseller, Downer said that despite economic uncertainty sales remained healthy, with “strong availability of key titles” in its stores. The number of events had increased and Borders had achieved its “best ever scores on customer service quality”. “Our market share is robust and our ability to drive share of high-profile promoted titles, series and themes continues to be strong,” he said.

But the letter failed to reassure those publishers spoken to by The Bookseller, with particular concern about the ongoing reorganisation of Borders buying team. One publisher commented: “We all wanted reassurance but the email told us nothing. It still leaves us with no idea about what is happening with them.” Another said the buying team decision needed to be resolved “for everybody’s mental health”. “Nobody will be able to finalise Christmas or get next year underway until this is resolved,” he said.

Downer conceded that the first half of the year had been spent by the retailer being “more inwardly focused than normal”. He said that the size of the buying team would “reflect the needs of the business going forward”. A four-week consultation about the changes concluded at the beginning of last week. Peter Newbould, the company’s new head of buying, will join Borders in early August. Two weeks ago Borders books category manager Caroline Mileham left the retailer to go to Play.com.

The letter also revealed that Borders plans to halt returns for two months from mid-August, just before it closes its Cornwall distribution centre. It will switch supply to direct to store, which will largely be fulfilled by wholesalers. The halted returns will be held instore for the two-month period and then individual stores will return titles via Gardners. Downer said book supply would operate on “just in time and replenishment” delivery.

Downer added that there would be no new store openings in 2008. He said that there was a “need to rationalise unproductive elements of the estate”. Last month it closed the Croydon branch of Books Etc and will also close its Borders branch in Lakeside, west Thurrock later this month [August].

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