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Bookshops have shrugged off talk of a grim summer for shops after wide-ranging statistics suggested the retail sector as a whole could be facing a perfect storm of rising costs and falling spending.
Earlier this week, the Confederation of British Industry reported the largest drop in retail sales in 25 years, while last week the Office of National Statistics reported that total retail sales dropped 3.9% between May and June, the biggest drop since the ONS began reporting retail figures in 1986.
Booksellers spoken to by The Bookseller played down concerns, despite Nielsen BookScan showing that revenue has been down year-on-year for 12 out of the 30 weeks of trading so far this year. This is more than in 2002, which recorded negative growth in 11 weeks, the previous worst year on record for declining sales.
Kes Nielsen, head of books buying at Amazon, said he was not “overly concerned” about the downturn. “Despite what Nielsen has been saying, I think other companies have put in reasonable results. I don’t think there’s a huge cause for concern.”
Keith Smith at independent Warwick Books in Warwickshire said that his business had increased sales in recent weeks. “I don’t really believe in this talk of doom and gloom,” he said. “We seem to be getting stronger and stronger.”
In a letter to publishers, Borders UK c.e.o. Philip Downer was also bullish, saying “at a time of economic uncertainty, I am pleased to say that our stores remain healthy, and that we are continuing to enhance our customer offer”.
But Asda’s retail director Andy Clarke warned of a “very grim summer for retailers”. Clarke, who is also the chairman of the CBI’s distributive trades panel, issued a gloomy prognosis. “Pressure from higher fuel and food prices is prompting many people to rein in their spending, proving that value retailing has never been more important.”
According to figures from Nielsen BookScan, in the year to date to 26th July revenue in the Total Consumer Market is down 0.6% to £868.5m compared with the same period last year. A rolling 52-week chart shows that the last year is up just 1.9% on the previous 12 months.
Earlier this week, Woolworths warned of a “marked” downturn in trading at its high street stores, while earlier this year, discount chain the Works and direct seller Premier Direct both went into administration.