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Living Oasis owner puts chain up for sale

29.07.11 | Lisa Campbell

The owner of Living Oasis is in talks with a “third party” to buy the chain after he closed two of his four remaining shops.

Ray George, chairman of the Nationwide Christian Trust (NCT), which bought 19 former Wesley Owen bookshops in January 2010, said the stores were losing him too much money and he did not see a future in Christian bookselling in the current climate.

In the last four months, the stores have decreased in number from 19 to four as George shut them one-by-one when the financial support he hoped to receive from local churches to keep them open did not come into fruition.

Only the Harrogate and Watford branches are left trading, because NCT owns the freehold on the Harrogate premises and Watford is being run as a franchise. The Manchester branch has closed and South Woodford will wind-up trade tomorrow (30th July). The latest redundancies affect two full-time members of staff and six part-time.

George said: “We have lost £1.2m in the last year and we are pulling out of book retailing. It is us too much for us to continue with, we cannot face these losses.”

The NCT, which runs ministry events from Mulberry House in High Ongar, Essex, has been bearing the brunt of the financial loss, George said. He added he was in talks with “a third party” to buy some of the Living Oasis stores which have shut, and Harrogate which is still open, but said it was too early to specify how many.

George said: “We do not think bookshops have a future in the current climate, Christian bookshops are going to struggle. We wanted to change them to include a coffee shop and community centres to survive.”

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By Ex-WOer

The Nationwide Christian Trust has behaved pretty badly. They have managed by telephone and email without much proper communication and without ever understanding local market pressures. And they gave the Manchester staff 48 hours notice that their shop was closing. A sorry end to a once-decent chain of shops.

Fri, 29/07/2011 - 10:40
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By mike levy

I am sorry that living oasis have had the turmoil that they have had - but i DISAGREE STRONGLY!!! with the comment ray george made as follows

"George said: “We do not think bookshops have a future in the current climate, Christian bookshops are going to struggle. We wanted to change them to include a coffee shop and community centres to survive.”

this is rubbish - i know there are some shops in difficulty but over the last few months i have visited many (as a rep) and found "chinks of light where there was darkness and gloom"

it is very unhelpful for someone who has little experience in this market to make comments like this and i pray that our GOD who is bigger than all of this will provide, as he always does, for his people in need in all situations

bless you brothers and sisters in Christ :o)

mike

Fri, 29/07/2011 - 10:41
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By David Rees

It is with genuine sadness that I have watched the Living Oasis experiment fail - not for NCT as I believe their vision was flawed from the start in planning to de-christianise the fronts of their shops, relying on inward investment at a time of austerity, and so many places really do not need another coffee shop - my sadness is for the staff and the customers who yet again find themselves with either no job or no Christian bookshop.

As far as his comment regarding “We do not think bookshops have a future in the current climate, Christian bookshops are going to struggle"
Firstly if we go now in the 'current climate' it is doubtful there will be a way back should the climate change.

Secondly yes it is a struggle, and unfortunately some will fail, but all those Christian booksellers I know felt called by God to serve their local communities. As long as we feel God's calling on our lives then Christian bookshops will fight on - we have an incredibly loyal customer base built on a common belief, trust, good service,local knowledge grown from our relationships and friendship - this is why we survive. We stand out in our communities as Christians, we do not try to hide it.

Fri, 29/07/2011 - 11:20
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By Phil Groom

Based on what I've been told by former LO staff, I think NCT/Living Oasis were their own worst enemy, unfortunately, and much of the damage was self-inflicted: suppliers unpaid leading to a broken supply chain and an inability to service customer orders; rent and rates payments withheld to the point where in at least one case court action became necessary; staff treated with contempt as nothing more than disposable assets; and an arrogance in pursuing the company's supposed 'vision' at the expense of all else combined with a refusal to listen to or communicate with those who wanted to help — in my case, actively blocking communications to the point of instructing staff to block me on facebook.

The whole project was based on a misconceived notion of what retailing involves: rather than working with their prospective customers to find out what they actually wanted or listening to the staff who were there in the thick of it, NCT seemed to work on the belief that they could browbeat people into embracing their vision, and that's an approach that was doomed to failure from the outset.

Sad to say it, but I think Ray George's comment about the future of Christian bookselling tells us more about his own inability to work in the real world than it says about the world itself.

Fri, 29/07/2011 - 12:58
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By Thebigman

Or a case of 'the emperors new clothes' with Ray George being the only person to say what everyone else is thinking - in public at least - that Christian retail is no longer viable.

Echoes of Mr Danbys words a few years ago I think. Whatever you think of them they are both experienced business people who would love the truth to be different.

Fri, 29/07/2011 - 20:31
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By John Duncan

I would say that Ray George's words are the words of a man who is exhausted and disillusioned, and as such should be taken in context. No-one would dispute that Christian retailing is extremely difficult these days, but there are those who have been at it for a while who are learning to adapt and find new ways to work in the radically changing marketplace that all booksellers are now familliar with. As had been said elsewhere it may be that it is the days of chain Christian retailers that are now drawing to an end, and it is the creative and flexible independent who has the best chance of doing sustainable business in the days ahead.

Sat, 30/07/2011 - 07:09
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By Amos

As in so many things, the truth in relation to the viability of Christian retailing is not simple.
It *can* be viable, given certain factors. These were spelled out by another contributor to the debate at the time of the original closure of the Wesley Owen chain. Note that at least one of these factors must be true - not all, though I'll come on to the most important ones later.
1) Non-existent or peppercorn rents
2) Mainly or entirely volunteer staff
3) Charity status
4) Nearby university
5) Large and enthusiastic church support
I would now from experience add two additional factors –
6) situated in a significantly multi-ethnic area and geared towards that population
7) enthusiastic but market-savvy management.
It is almost certainly true that Christian retailing in the UK is not viable in a secular sense. From a purely financial perspective, I am forced to the conclusion that part of the problem has to be the discount structure we have to live with. Discounts available are normally in the range 35% to 50% though the higher end has to be fought for. At a turnover level of £100K, this means that only say £40K is available to fund everything. (OK this is simplistic but it sets the scene). If you take from this the costs of utilities, rates (and charity status helps here of course), and VAT then there ain’t much left for wages & rents.
This then sheds light on the factors enumerated above. 1) and 2) are absolutely essential , 3) is also critical, and the others help to increase the overall turnover, thus releasing additional funds.

Sun, 31/07/2011 - 09:36
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By Pete

It is very sad - and, like David Rees, my main concern is for the staff & customers (especially the former). David sums up my own thoughts on the reasons for NCT's LO experiment failing. It is also sad that they have lost over £1.2million which could have been used to support their other worthy endeavours. However, I agree with others that their losses seem to be due, not least, to mismanagement, born out of a naive assumption that they could do better (despite little or no experience at a senior level) than a team of very experienced retailers - the previous Wesley Owen management team. Along with others who have commented here, and elsewhere, I would encourage Christians across the country to "think outside the box" by all means, but recognise that God can use the 'tried and tested', as well as the 'fresh and funky'. Each location should be seen as unique and - as others are wondering - maybe the "Indies" model is the most robust!

Sun, 31/07/2011 - 21:09
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By Melanie C

Thebigman - no emperors round here I'm afraid and I don't think Christian bookselling is dead but it is in transition along with all small indie bookselling these days.

Sorry Amos - have to disagree with you, I'm doing ok and not using either 1, 2 or 3 - we do have a university but it doesn't really offer theology, we do have church support but as to whether the first two words fit that's another question, Lincoln's not best know for it's multi-ethnic population and I don't carry polish books, but I would hope I do fit criteria no. 7!

As to the margins you state - sadly they are par for the course in even indie general bookselling largely these days and are something I do think need addressing across the industry.

The truth is by and large the days of Large Chain bookselling, let alone Christian bookselling, seem to have been and gone as a stand alone business - if that's what's meant by Danby and George then they are probably spot on.

However when they generalise to all then they are wrong, as John and others have said the indie's are in some places doing well, in other places holding their own, and in some cases just hanging on - it is largely a matter of change and the ability to adapt, especially in this beleagured economy, but Christian bookselling is not yet dead and rumours of it's demise are yet premature, how many years actually do we have to listen to this echoing refrain?

It seems to me the only ones saying it can't be done are those that have failed at it and in the immortal words of the Chinese proverb - those that say it cannot be done should get out of the way of those doing it.

Sadly when they do get out of the way they tend to be leaving a bit of a bloody trail behind them and this is the pity of it.

Tue, 02/08/2011 - 11:19
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By Amos

Well, Praise God, Melanie and keep up the good work! Actually, the university criterion is about having a sizeable student population, rather than a theology faculty.

Tue, 02/08/2011 - 15:06
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By Melanie Carroll

Amos - in these days of Kindle and secularisation I'm not sure a sizeable university population is really a big help, if it is I can't say i'm noticing it that strongly - I would still think it needs to be a theologically or philosophically interested university capture.

Tue, 02/08/2011 - 18:13
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By Paulo$

While it is sad to see the closure of the Living Oasis shops. Surely it was better for NCT to try and fail which unfortunately has happened then not to have tried at all. I sincerely wish all those who have worked for Living Oasis all the best for the future and do hope that they find alternative employment soon.

Tue, 02/08/2011 - 21:44
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By Dr John Birch

Dear Friends,

The King's Christian Bookshop in Scunthorpe was about to be closed and redundancy notices issued to staff.

We asked the Lord for a radical solution and have opened a second hand clothing and bric a brac business on the premises whilst retaining the bookshop part of the work.

Eighteen months on we are alive and well and still trading and witnessing.

Why not others?

Blessings.

Thu, 11/08/2011 - 16:53
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