Blogs

Denis Hellewell

Denis Hellewell is a turnaround specialist assisting failing businesses. His day-job involves helping companies improve their revenue streams: that is telling them just how badly they've screwed up and suggesting ways that they can avoid "the manure hitting the air circulation device". With his wife, Karen, he co-owns The Wellwisher Children's Bookshop, based in Devizes. His first novel The Game Players of Slaithwaite was published in January 2006.

More than a bookshop

27.09.07

Last week I attended The Bookseller Retail Awards, and watched the winners being cited for innovation in bookselling. But the innovations seemed more about diversification and survival than they did about selling books. I got into conversation with the other booksellers on the table, the topic being is it possible for the independent bookseller to make a living selling books?

When we got into bookselling some 10 years ago there seemed to be about 2 – 3,000 independents, now I'm told there are about 500, with five independents closing every month. The news of the Borders sale, which on the face of it looks like the bargain of the century, is another indication of the malaise facing bookselling where even large established chains are struggling.

In our 10 years of trading we have seen the independent market decimated. Now I've been around a bit, working as I do as a turnaround specialist assisting failing business and large civil sector projects come back into profit or budget, but I've never seen an industry so hell bent on destroying its market place. Yes, well, ok, maybe there are comparisons with the British carpet industry selling off its old weaving machines to India. Funny how you can only buy imported carpets these days.

We are a children's bookshop, selling only children's books, based in a small Wiltshire market town with a population of around 20,000. We are fortunate that we own all our property and don't have to meet large rental payments. None the less we still have a cost base we have to meet before we break even. The town has five bookshops and not more than a 10 minute drive away a Sainsbury's, a Morrison's and the largest Tesco in the world, well at least one of two stories that sells everything except cars and I hear they are considering that. 

Back to our cost base, to break even we have to turnover £100,000 a year, but we sell children's books which retail at, after discount, about £4. To achieve a revenue stream of £100,000 we have to sell 25,000 books. Just a tick, there's only 20.000 people in the town or to put that another way about 5,000 families and we are not the only people trying to sell them books. Now I did see a statistic the other day that said the average person in their life time reads about 500 books or about 6 a year. Mostly borrowed from libraries, schools and family. How many books the average person buys a year I don't know but my guess is not many.

Before we make a profit we need to sell 5 books every year to every family in the town. This is not a business case that is going to be looked on favourably by the bank manager. How can we increase our turnover and profits? We could move to a bigger town or  we could diversify and try selling something else—coffee seems a favourite for many people and you can see why,  for every book we sell at £4 we make a gross profit of about £1.50, for every cup of coffee sold at £2.20 the gross profit is around £1.80. More people drink coffee than read books. Trouble is when do you stop being a bookshop providing a service and start becoming a coffee shop, ice-cream parlour, cyber café, or art gallery that offers a few books?

The retail awards went to entrepreneurial people determined to survive, I’m not sure they would if they just concentrated on selling books. I know my examples are all given in round figures and that adult books provide higher profits. But the point I think is made. The traditional independent is a dead animal. To survive—and it is about survival—we need to diversify into some form of affinity selling, original art, cards, toys whatever. One thing I think is certain we will not be able to sell our business when we go. Whoever we sell to will probably open a coffee shop or maybe an estate agent.

The Wellwisher Children's Bookshop was shortlisted for the Walker Books Children's Independent of the Year award at this year's Retail Awards.

Add comment

By posting on this website you agree to the Bookseller Comments Policy. Comments go direct to live, please be relevant, brief and definitely not abusive. Report any "unsuitable" comments by clicking the links.

Name

Comment

Email

Comments on this article

By colin osborn

I live in Wiltshire and buy books through the Wellwisher, both children's ones as gifts, and older ones for myself. What hooked me was being able to go into a shop and say I want Christmas presents for nieces aged 12, 8 and 7 and nephews aged 7, 6 and 3, and having a choice of suitable books brought to me. This is the equivalent of going to a wine merchant with a menu. It is only by providing this service that a book seller can overcome Amazon, Book Barn, or the pile of cheap books by the supermarket till. It is true of the small independent or the big chain.

27 Sep 07 19:59

Unsuitable?

By Carlie Lee

I have read both of these posts with interest and wondered if you could take Colin's point a step further. There are thousands of people who want to buy books as presents, but never know what's suitable or if the child's read it. There is nothing worse than trawling Amazon with uninspired keywords, or standing in front of the soulless supermarket shelves gazing at the Top Ten. How do you know what else a Potterpundit would love, or what a thirteen-year-old pony-nut wants to read? It would be brilliant to find a bookshop somewhere that could help, either in person, on the telephone or on-line. It would be even better if that bookshop could gift-wrap and post the books (for small fee) to wherever they were wanted. How cool would it then be if that bookshop retained a record and sent you a reminder of that child's birthday next year, with some more books suitable to the child's age and interests? And then...I'd better stop before I get carried away. But would a personal book shopper service be an option for independents? I know you provide the service already, but why not formalise it and advertise it?

28 Sep 07 13:58

Unsuitable?

By Karen Hellewell

Responding to Carlie Lee's suggestion of a personal shopper service.... you are quite right most independent children's bookshops do offer this level of personal service to customers who pop in. Certainly my customers know where to come when they need help as do schools in Wiltshire and Swindon. Perhaps we don't advertise this service widely enough.......

29 Sep 07 13:06

Unsuitable?

By Simon Key

I'm sure you aren't the only local retailer in Devizes (or anywhere else for that matter) that's being affected by the likes of Tesco. And whilst you say that 5 independents are closing every month, there are those of us who are opening new ones (woodgreenbookshop.blogspot.com.) Here in Wood Green in North London, , myself and my colleague Tim West see a real chance to thrive in an area that also has a Tesco, a WH Smith, and a Morrisons. We aim to work with other local traders, building a loyalty system in Wood Green that rewards customers who shop locally. 'Spend £10 with us and get a free drink at the local Restaurant' for example. If you rely on the 20,000 locals and not the tourists, this may be a way of encouraging growth away from these massive soul destroying companies. I must stress that I'm just starting out, so have that ridiculous kind of enthusiasm that will no doubt be kicked out of me within the first months, but it's a thought!

01 Oct 07 13:06

Unsuitable?

By Denis Hellewell

Simon, my point was that without the enthusiasm and initiative you describe that the traditional independent bookshop serving its local community will not survive. The only way we can compete is to offer a service second to none. The booksellers we know do this, and often actually support each other. As Carlie said we maybe don’t sing our praises loud enough to be heard above the hubbub from the supermarkets.

03 Oct 07 07:16

Unsuitable?

See Also