The Bookseller.com

4th July 2009

« Headlines

Bloomsbury moves to cap Harry returns

20.07.07 Katherine Rushton

Bloomsbury is hoping to avoid high levels of returns of the final Harry Potter novel by holding off on a reprint decision until the Wednesday after release.

"There will be no decision even if on Saturday or Monday it looks like it's selling beyond our expectations," said a spokesman. Nigel Newton, Bloomsbury chairman and c.e.o, added: "If any of our supermarket customers run out of stock of Harry Potter on Saturday morning, it might be an idea for them to go to their local independent bookshop to stock up. We would like the forces of supply and demand to operate. People can find the books where they are instead of some of our customers finding they have big overstocks a week later."

The news follows a spectacular U-turn from Asda this week, after Bloomsbury threatened to make it a "Harry-free zone" unless it paid for unauthorised returns and withdrew a damaging press release. Bloomsbury said Asda owed £38,000 for unauthorised returns of the sixth Potter book, while Asda countered that Bloomsbury owed it £122,000 for "pulping and other book trade issues and work we have done for them". Asda was forced to meet Bloomsbury's demands after the publisher threatened to stop supplying it with books, including 500,000 copies of Harry Potter
and the Deathly Hallows. But the row threw open the issue of the payments some retailers demand of publishers. A Bloomsbury spokesman said on Thursday: "We don't want to deal with a retailer that threatens to make you a publisher in decline if you don't make loyalty payments to them."

According to sources, Asda has asked publishers to make extra payments to help it grow its books business. But an Asda spokesperson said the payments were distinct from the row over Potter, and said they were "an opportunity to invest in the business with us, in their category, to help them grow. It's not a diktat; it's an absolutely free choice." She added that publishers who paid the fee would not join a list of preferred suppliers, but that Asda "would work more closely with [them] than we might otherwise have done". Some have seen a 30% increase in revenues through the chain since the scheme launched in January, she said.

The row underscored the aggressive pricing strategy that surrounds the last Potter book, slammed by BA c.e.o. Tim Godfray as "crazy". On Wednesday, the lowest price on offer was £7.99 from Wilkinson's, while Asda--price matching Tesco and Sainsbury's at £8.87--pledged to be "the lowest price in the land" on Saturday. Waterstone's will sell the book for £8.99 in store, WH Smith for £10.99 and Borders for £11.99. Amazon is currently offering it for £8.99.

For more Potter comment visit thebookseller.com/blogs

Retail Katherine Rushton harry potter Bloomsbury children's Asda