Britain’s only remaining nationwide chain of bookshops is going back to its roots amid plunging sales. Waterstone’s, squeezed by online bookshops on one side and supermarkets on the other, is attempting what some observers believe is one last throw of the dice to create a “specialist chain relevant in a Google world”.
Poor trading over Christmas prompted HMV Group, the owner of Waterstone’s, to replace its managing director, Gerry Johnson, with Dominic Myers, pledge to hand back control to managers and reduce its reliance on celebrity biographies. The new model harks back to the days when bookstore shelves would reflect local tastes. Simon Fox, chief executive of HMV, said: “It would be a tragedy if this country didn’t have a chain of highly attractive specialist bookshops.”
Waterstone’s has long struggled under competition from the supermarkets, which sell bestsellers at knock-down prices, and internet retailers such as Amazon. It has also the challenge of digital downloads for e-readers. Mr Fox said: “None of those offer the experience of browsing in an inspirational bookshop, talking to a skilled bookseller — the whole experience that is the joy of a very good bookshop.”
HMV said yesterday that it would stock fewer copies of celebrity autobiographies at the front of stores, giving managers greater freedom to tailor selections according to local tastes.
Earlier this year Waterstone’s established a new distribution system, called The Hub, which stripped branches of their autonomy by increasing the amount of common stock. Instead of publishers delivering directly to stores, books would be distributed from a central warehouse to cut costs. HMV claims that the centralised distribution system is not inconsistent with a return to the traditional bookshop model.
Advertisement
But Mr Fox admitted: “The supply chain has consumed a large amount of time and resources, to fix the back end of the business. I think we have been somewhat focused on the nuts and bolts and mechanics of the business rather than the customer.”
HMV won plaudits for securing the place of its music stores, in a shrinking market that has already meant the demise of Zavvi. Analysts refer to HMV as “the last man standing” in entertainment retail — allowing it to pick up the market share of its fallen rivals.
However, there is scepticism among retail experts that a more specialised bookstore could sustain Waterstone’s 313 branches.