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Academic bookseller Blackwell is to undergo a further review of its operations in light of the deteriorating economic conditions. The decision follows what its directors described as "another challenging year" for the group with "unprecedented level of discounting, which damaged sales and margins across all categories".
The move was revealed in the latest annual report and accounts of Blackwell Ltd, which includes the performance of both its library supply and retail businesses. Despite the difficult year the accounts showed improvements in both turnover and operating loss for the period, which ended 28th June 2008. Blackwell’s turnover grew to £153.2m, up from £150m the previous year - an increase of 1.94% - while the business' operating loss fell to £11.3m from £12.8m.
The accounts take in the period before September when Vince Gunn, chief executive of the retail wing, left and Andrew Hutchings, chief executive of Blackwell Book Services, took over. However they were signed off on 13th November, and have recently been submitted to Companies House.
Hutchings declined to comment specifically on what measures may come out of the review, which will cover both sides of the business. "We are trying to understand what the consumer will be doing, and in terms of our library supply business, what the budgets for academic library will be. We will have to adjust our business in line with the market," he said.
Blackwell began implementing a three-year turnaround plan at the end of its previous financial year under Gunn. Over the last 12 months, it has closed seven stores, made some 30 people redundant, and relaunched its website. It has also rolled-out its own-brand stationery, and will next year unveil an Espresso Book Machine in one of its stores.
Hutchings described the UK performance as "solid rather than spectacular", and stressed Blackwell was still "on course" to meet its three-year target.
Hutchings added he "wouldn’t rule anything out" in terms of measures that come out of the review, but was adamant it would not involve "the race to the bottom through deep discounting". He said: "We are not going to be a big discounting organisation - our shops to date have not been, and we will continue to sell around value propositions, understanding customers, and providing excellent customer service."
The company had been "performing to plan" for the current financial year, although Hutchings acknowledged trading conditions were worsening. He said: "We are pleased with where we are to date – the big concern is what the market conditions will be like for the next six months."