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March 13, 2008
Borders and the Froot Loop Gambit
The article goes on to note that "Reducing inventory goes against the grain of booksellers' efforts over the past 25 years or so. Chains like Borders and Barnes & Noble Inc., the nation's largest book retailer, became household names with superstores that stocked as many as 150,000 titles or more. The rise of Amazon.com Inc., which offers a vast selection online, made it even more important for stores to offer deep inventories." A little later, the reporter concludes, "With the book market facing unmitigated gloom, Borders has little choice but to experiment."
I've talked about chain stores and how they do and don't satisfy the avid reader: In "What Makes a Bookstore?", a golden oldie from about four years ago, I granted that "when it comes to hanging out, it's hard to beat the chains." But I relish and much prefer the relevance of a good independent bookstore, which should allow one to "walk into the bookstore and be able to grasp, based upon which books are on display and based upon conversations with staff and fellow customers, what matters at that moment both in the wider world and in the neighborhood."
In this framework, putting ever more books face-out and thinning inventory is exactly the opposite of what I want a bookstore to do. The failure of chain bookstores is that they try to make the bookstore experience like any other retail experience, placing the merchandise just so in the hopes that it will entice the shopper. Indeed, according to the WSJ, "The new display strategy is the brainchild of CEO George Jones, who says he learned when he was a buyer at Dillard's Inc. early in his career that dresses sell better when the entire garment is shown rather than hung sleeve-out." John Deighton, editor of the Journal of Consumer Research, has a similar point of view. "'Breakfast cereals are not stocked end-of-box out,' he says. 'You want to your product to be as enticing as possible. It's a little bizarre that it's taken booksellers this long to realize that the point of self-service is to make the product as tempting as possible.'"
And who knows, tests have shown that "sales of individual titles were 9% higher than at similar Borders stores." Still, further down this path lies the ultimate in bookselling vapidity, the airport bookstore, where all the books are face-out, and the desperate traveler is forced to choose between bad or worse.
As I thought about turning books into so many boxes of Froot Loops, the article left me with a final question. Many bookstore regulars may not be aware that bookstores, from chains to indies, accept what's called "co-op" from publishers. Ostensibly, this is money that is meant to help market certain titles. In practice, co-op money dictates display areas, what ends up on prominent front-of-store tables, and, yes, face out placement on shelves. The article doesn't mention co-op explicitly, but I wonder if this is another motivation for Borders. If so, putting books face-out may lead to incrementally more sales, but it may also bring in more marketing cash from publishers, and the end result is an ever more pre-packaged, market-tested, one size fits all experience for readers.
Edit: Thanks to F.S. for the correct spelling of "Froot."
- C. Max Magee @ 7:28 PM ~
comments: 14 ~ Links to this post
I see the logic of Border's strategy, and since I don't have to shop there, I wish them well. But if I lived in a place where great independent bookstores weren't plentiful, I'd probably be upset. It seems like they are conceding that if a title is at all obscure, the customer will probably simply order it from Amazon. It's a little depressing.
One could argue that the success of Amazon and the like is attributable to what is essentially its "spined" display -- the search results page, with minimal information about each hit. Similarly, one could argue that with a heavily face-out policy, Borders may as well dispense with their convenient "search our inventory" terminals. So so late-20th-century, no?
The next time I go down to my local chain Cerealseller to choose my cereal for this week from among the 150,000 cereals on offer Mr Froot Loop can come and offer me some buying advice.
Finally, the point of facing out is to attract attention to specific titles from the larger product range. The larger product range sells fewer copies of individual titles, but sells well by total volume... it also serves to attract serious bookbuyers and lend kudos to the bookstore.
If chains chose to employ staff with knowledge (and local control) of that enormous range then they'd have a most effective sales tool. These retail gurus need to spend less time in supermarkets and more time at beauty counters and in cell phone stores. Books are a knowledge product requiring retail guidance and salesmanship... do these guys spend as long with their Wheaties as they do with a novel?
And the authors who sell more books because of better marketing are going to be REALLY pissed when they find this out!
Pete
(oh irony, thy name is blog comment)
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F.S. @ March 13, 2008 10:21 PM


