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Publishers and the City have broadly backed Waterstone's turnaround plan after the chain's new m.d. Dominic Myers presented its strategy for the next three years. Peter Field, c.e.o. of Penguin, described the plans as "terrific", while Nigel Newton, Bloomsbury chief executive, described this switch in buying outlined last week in The Bookseller as "extremely smart".
Will Atkinson, head of sales and marketing at Faber, said: "[Myers] has laid out a wide agenda and is attacking as much as he can. Waterstone's used to be the unqualified home of writers, both new and established. A return to that would mean success."
At an analysts' day held by parent HMV Group last Friday (26th March), Myers told retail analysts a relaunched new e-book store, a repositioning of range, greater focus on local promotions and increased non-book sales were among its immediate plans. He said the branches had suffered from a "stifling homogeneity" and had been hit by a "hub- inflicted lack of availability", which had undermined its reputation as a range bookseller.
Publishers told The Bookseller that they were impressed by the changes introduced by Myers since he was appointed managing director in January. Field said: "Clearly with the books Penguin and DK have, it's great to hear the strategy is to increase range. I also think it's a smart strategy to establish a strong point of difference in the high street."
James Spackman, sales and marketing director at John Murray and Hodder, said: "The changes will surely make Waterstone's branches more appealing to the public. Extensive range, personal recommendation and local feel sounds like a pretty potent combination."
Myers said that up to 10% of a branch's space would be available to booksellers to make their own buying choices. Atkinson added: "A move to win back the hearts and minds of the heavier book buyer while maintaining a good value promotional strategy should be good news for publishers, writers and readers."
Among Waterstone's other plans are to have a "much more prominent" events programme and a fresh focus on its loyalty card. Myers said it was hoping to offer rewards "that money can't buy", like card-holders meeting authors. The retailer said it could gain £5m in profit from Borders' collapse and was getting 25% of the "lost" £60m Borders book sales.
Myers also added that it was in discussions with a gift stationery retailer to open concessions in its larger stores.