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Usually, on Thursday afternoon or so, I start pondering what I’m going to write about on Friday.

This week: no pondering. There’s only one thing I could possibly write about.

The biggest book-related newsflash this week – or this year – is that Barnes and Noble is changing ownership. The ins and outs are a little complex (and everything is not quite settled), but if all goes according to plan:

  • An investment firm, Elliott Advisers, is to buy Barnes and Noble, in a deal which values that business (including its debts) at about $700 million.
  • That sounds like a lot of money, but given that B&N’s sales are $3.6 billion, the pricing actually feels pretty cheap – reflecting the dismal state of B&N.
  • Elliott is also the 100% owner of Waterstones, the British equivalent of B&N. Both those chains are proper bookshops, appealing to proper book lovers. In that sense, the chains are distinct from the supermarkets, who just sell a lot of books but don’t care about them, or the British High Street & travel operator, WH Smith, which is as much a stationer and a newsagent as an actual book store.
  • Waterstones was rescued from impending financial disaster by CEO James Daunt. It was Daunt who negotiated the sale of the firm to Elliott.
  • Daunt will now act as CEO to both firms – B&N and Waterstones – and will divide his time between London and New York.

As it happens, Daunt also owns and runs his own mini-chain of high-end London bookstores. It was his experience at those stores which won him the position at Waterstones.

So, assuming that all goes according to plan, James Daunt will be the book world’s second most powerful human, after Jeff Bezos.

So what does that mean – for readers? For writers? For publishers? For anyone?


It’s a big and important move. James Daunt has a huge reputation in the UK and it’s probably deserved. His secret sauce for success? Quite simply this:

There is no secret sauce.

In the UK, Daunt simply took everything back to basics.

He turned bookselling into a proper career. (Albeit, inevitably, a badly paid one.) He retained staff who cared passionately about books and waved good-bye to the rest, perhaps a third of them. He cut costs. He made his stores prettier.

And, in a move so radical that it shook British publishing to its core, he let each store manager select their own inventory. So, yes of course, every store was expected to stock major bestsellers of the moment. But beyond that, what stores sold was guided by local passion and local knowledge. From a reader’s point of view, stores got better. There was more energy, more passion, more commitment.

But publishers, for a while, didn’t know what to do. In the past, publishing worked like this:

  1. Publishers paid Waterstones a big chunk of cash to get into a 3-for-2 front-of-store promotion. So Waterstones was actually retailing its shelf-space. It wasn’t really curating its own retail offering.
  2. Some of those 3-for-2s did really well, and became huge bestsellers.
  3. Others didn’t, and the volume of returns was enormous (often 20% of total stock.)
  4. Publishers pulped those returns, ditched those authors and just made money from their mega-successes

That was check-book publishing and check-book retail.

Daunt killed that, and terrified publishers. How could they market books if the key step wasn’t just throwing bundles of money at retailers? [and if you want a reminder of the different publishing options, you can get that here.]

Well, they solved that problem … kinda. But all they really did was turn their attentions (even more than before) to the supermarkets and other mass retailers. Waterstones’ local stores are great and feel like real bookshops … but they can’t build a bestseller as they did in the old days, because each store chooses its stock according to its own tastes.

Daunt’s path in the US is likely to follow the exact same route.

He’s commented that one of the issues he feels on entering a typical B&N store is quite simply “too many books.” Too much stock. Too little curation and guidance. Not enough knowledge from the booksellers. An atmosphere so flat, you could swap it for cigarette paper.

He’ll cut stock. Reduce staff, but retain the best and most passionate members. Eliminate central promotions. Get better terms from publishers. Sharply reduce stock returns.

Do the basics, but do them right.

The impacts, positive and negative?

The positive:

Elliott’s cash plus Daunt’s knowhow should save specialist physical book retail in the US. That’s massive. It’s the difference between a US publishing industry that operates much as it does now and one that would be almost wholly slave to Amazon. That also means that trad publishing is likely to survive in roughly its current shape and size, rather than being sidelined by the growth of digital-first publishers (notably self-pubbers and Amazon itself.)

The negative:

US publishers will have to learn the lessons already absorbed by the Brits. If B&N no longer operates national promotion systems as in the past, publishers can’t make a bestseller just by buying space. Yes, they’ll go on seeing what they can do on social media and all that stuff. But, as in the UK, they’ll be even more dependent on supermarkets. The make-or-break of a book will be not “Is this wonderful writing?” but “did we get enough retail space in enough supermarkets at a sufficiently attractive price?”

I know any number of authors where Book A did incredibly well, Book B did poorly … and Book B was better than Book A. The difference, in every case, was that the supermarkets backed A and not B, and there’s damn all a trad publisher can do once the supermarkets have said no.

Oh yes, and supermarkets don’t really give a damn about the quality of writing. They don’t know about the quality of the writing. They just buy on the basis of past sales (if you’re John Grisham) or a pretty cover (if you’re a debut.)

Of course, they’d say their selection is a damn sight more careful than that, and it probably is. But that’s still “careful by the standards of people who mostly sell tinned beans and dog food for a living.” That’s not the same thing as actually being careful.

That sounds like a fairly downbeat conclusion, but the Elliott-saves-B&N news is still a real big plus for anyone who loves traditional stores, print books and traditional publishing. It’s the single biggest win I can remember over the past few years.

What that win won’t do, however, is weaken the hold of supermarkets and Amazon over book retail. Those two forces are still huge. They’re still central.

And of course, talking about print books has its slightly quaint side. Me, I prefer print. I hardly ever read ebooks. I just spend enough time on screens as it is.

But print books constitute less than 30% of all adult fiction sales, and online print sales accounts for a big chunk of that 30%.

In other words, all those B&N stores up and down the US are still only attacking 23% or so of the total adult fiction market. However well Daunt does, that 23% figure isn’t about to change radically. (Or not in the direction he wants, anyway.)

But, just for now, to hell with realism. Let’s remember the magic of a beautiful bookstore.

Daunt does. Here are some comments of his from 2017:

“[there is a sense that] a book bought from a bookshop is a better book.... When a book comes through a letter box or when a book is bought in a supermarket, it's not vested with the authority and the excitement that comes from buying it in a bookshop. …Price is irrelevant if the customer likes the shop. The book is never an expensive item, [particularly for the many customers who] we know are quite happy to go into a café and spend dramatically more on a cup of coffee."

Quite right, buddy. Now go sell some books. The readers need you.

Till soon


    • Good news. I hope B&N survives. When I was a kid, my grandparents used to take me to their local Barnes & Noble all the time. Fond memories. The stores have really gone downhill over the years, turning more commercial and impersonal ... also kind of messy and dirty, like the staff don't care enough to clean the store spaces or put the inventory in order. I hope this move revives them.  

      As much as I prefer print, I gotta say that e-readers are a lifesaver for book-lovers with disabilities. A chronic health issue means my hands don't function the way they used to, so it's a lot easier to use a light-weight e-reader and just tap the screen to turn the pages. When I'm buying books as gifts for friends and family, though, nothing beats a beautiful print book. 

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      • Yes. B&N (and Borders, back in the day) somewhere decided that good retail = being more like Walmart.

        Which is true - if you're Walmart. If you're a bookshop, you need to be a place of magic and passion. Daunt gets that. His own stores - the little London chain he still owns directly, I mean - are absolutely gorgeous little jewels. Last time I went into one, I left with a stack of books.

        And ebooks vs print? Sheez. People should just read in whatever way suits them. The idea that there should be an ideology around it makes no sense at all.

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        • It's not so good for authors with very small publishers. Waterstones now requires 60% discount (where the industry standard is 40%) which barely covers production costs for low-budget publishers.

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          • Yes - it's quite common to see those kind of complaints. But I think if I were Waterstones, I'd say, "Look, we pay our staff very little. We've trimmed costs as much as we can. You, the broader publishing community, need us to exist and thrive. And yet our profits are still just a tiny sliver of overall turnover. If we gave you fatter margins, we'd just keel over and die."

            So what that says, I think, is (a) that it's tough being a smaller publisher probably also (b) there are still too many books being published. It's not that I don't like the smaller books / presses, because I really do. It's more that the commercial case for those things is ever harder to make.

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          • Adding another slant to this conversation is the difficulties of the Independent Bookseller.  Not that I know a lot about them, other than one in my village that doubles as a small cafe as well.  I found an interesting blog on another website, Funding Circle, who a Crowdfunder who use small investors to fund small businesses.  They have joined a scheme to support the Indie Bookseller called Just One Book.  It is supported by a wide number of celebs including Twiggy and Michael Palin.  The link is: https://www.fundingcircle.com/blog/2019/06/natalie-dormer-michael-palin-twiggy-join-campaign-to-support-independent-bookshops/?utm_source=IW&utm_medium=InvestorNewsletter&utm_content=13kregulartransfers&utm_campaign=INV_190626_Newsletter_Active%20(1)

            Might be worth a glance.

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            • We regularly have holidays in the USA (from UK) and I'm always astonished by how expensive books are over there.  Most things are pounds for dollars, but not with books - in fact a common paperback price is 14.99.  Why is it so much more than the average £7.99 over here?

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