What the Closing of Borders Means for Authors

As you probably know, Borders filed for bankruptcy-court protection in February. Since there were no buyers and they didn’t want a bankruptcy-court auction, Borders is now forced to liquidate. The U.S.’s second largest bookstore chain will close their 399 stores by the end of September. This not only means that 10,700 people will be out of work, but that literally miles of bookshelf space will be gone. This is bad news for authors on many levels. For instance, bookstore employees were often the ones who recommended books to customers, and if they’re no longer there to talk up your book who will?

Borders blames their troubles on the rising popularity of e-book sales, a turbulent economy, and on publishers who refused to allow them to pay their bills later. Whether this was a wise strategy on the publishers’ part is hard to say. Publishers need income to keep their companies going, but now there is one less chain to carry their books. With far fewer opportunities for readers to browse in a physical store, amazon.com and other online stores will likely see a boost in business. So, is this a sign of things to come for other chains? To read more in an article from The Wall Street Journal go to http://online.wsj.com/article_email/SB10001424052702303661904576454353768550280-lMyQjAxMTAxMDEwODExNDgyWj.html

There’s also an article in The New York Times you can find at http://dealbook.nytimes.com/2011/07/18/borders-calls-off-auction-plans-to-liquidate/?ref=business

On a related note, author Kristine Kathryn Rusch posted news that Barnes & Noble plans to substantially cut the number of paperbacks they carry to add more games and toys to their stock. They are expected to start massive returns of books to publishers soon, which again is bad news for publishers and authors. Authors’ royalty checks will be smaller than normal for the third quarter of this year. As bookshelf space shrinks, print runs will be smaller in future; incomes and careers will suffer. Publishers might be less inclined to take on new writers than they were before. Some publishers won’t survive.

Hold onto your hat folks, the next few months are going to get pretty bumpy for some. We’ve all been through tough times before, but this doesn’t make the news any more welcome. You can find Rusch’s blog at http://kriswrites.com/2011/07/20/the-business-rusch-third-quarter-blues/

THE OPPOSITE OF DARK, http://bit.ly/i983XE, Chapters/Indigo http://bit.ly/gtFSFw
FATAL ENCRYPTION, http://tinyurl.com/ddzsxl
TAXED TO DEATH, http://tinyurl.com/czsy5n

Borders Tries About-Face on Shelves Counting on Covers to Sell, Bookseller Changes Display While Cutting Titles Stocked

*THIS ARTICLE BY JEFFREY A. TRACHTENBERG HAS BEEN EXCERPTED. It recently appeared in Jerry D. Simmons' newsletter - TIPS for WRITERS from the PUBLISHING INSIDER. It has been reprinted here with permission from Jerry D. Simmons, http://www.writersreaders.com, and the author.

Borders Group Inc. has decided you can sell a book by its cover.

In a radical move aimed at jump-starting sales, the nation's second-largest book retailer is sharply increasing the number of titles it displays on shelves with the covers face-out. Because that takes up more room than the traditional spine-out style, the new approach will require a typical Borders superstore to shrink its number of titles by 5% to 10%.

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 made it even more important for stores to offer deep inventories.

Borders has little choice but to experiment. Competition from the Internet, videogames and other electronic devices has flattened growth in book sales in recent years.

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. So he recently decided to test sales of books shown with the cover visible at a newly built prototype store in Ann Arbor, Mich., where the company has its headquarters. Results were so encouraging after the first two weeks -- sales of individual titles were 9% higher than at similar Borders stores -- that all of the retailer's superstores have been told to adopt the new strategy.

The retailer says customers throughout the country should be able to see the difference in displays within six weeks. While books shown face-out will still be in the overall minority, as many as three times the titles as in the past will be shelved with covers showing. Certain categories, such as books about food, cooking, travel, art and photography -- and children's books in particular -- lend themselves to the new approach.

Shoppers in the Borders store where the new face-out display was tested Borders says customers visiting its prototype store said their impression was that more books were available. Even so, its new strategy -- which at a typical superstore will mean a reduction of anywhere from 4,675 to 9,350 titles from the former total of around 93,500 -- could make Borders vulnerable to a marketing campaign from Barnes & Noble that promotes its own vast selection. The average 25,000 square-foot Barnes & Noble superstore stocks approximately 125,000 to 150,000 book titles, and the chain says it has no intention of cutting back.

The Borders push may affect small publishing houses, which can often place a debut novel in Borders because it has such a broad selection. Whether that will be more difficult in the future is unclear.

From Cheryl:

I have always bought books that are facing out, unless I've gone in for a specific title. It is always the cover that grabs me first, then the author's name, then the title and back cover or inside flap text. This is how I pick a book.

What about you? What makes you buy a book? Does it matter to you if it's facing out?

If you're an author, have you ever gone into a store and turned your books face out? :)

~Cheryl Kaye Tardif, bestselling author