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European book sales have picked up since shops reopened but are mostly well below pre-coronavirus levels, according to a report by the Federation of European Publishers.
Billed as an “interim stock-taking exercise” by FEP president Rudy Vanschoonbeek the report shows even countries where bookstores remained open have struggled to grow their markets and calls for government support to help the industry.
The report noted that overall sales at the start of national lockdowns, from mid-March to mid-April, saw overall sales plunge 66% in France where one publisher had a 90% fall in early April. In Italy, nearly one third of publishers estimated a loss of more than 70% of their turnover for March.
“At the peak of the crisis, book sales were down 80% in Portugal and Spain, 85% in Italy and 90% in Slovenia,” the report said. “Similar losses were experienced all over Europe, with online sales growing everywhere but not enough to offset such losses.”
By the time bookshops reopened across the continent “a huge damage had been done” to sales, the report states. In Austria, turnover from January to May was down 12.7%, publishers’ sales lost 15% in the Czech Republic and sales were down 22.1% in France. There was a 11.9% fall in Germany while turnover during lockdown shrunk 50% .
Although sales picked-up immediately after lockdown “restrictions in place and people’s caution meant that they remained lower than pre-crisis levels”.
In the first week of shops reopening, sales more than doubled in value in France compared to the previous week, and were also 2.7% higher than the year before. But they fell 8% the following week and were 11% lower than the previous year.
In Spain, bookshop sales were up 37.5% compared to the previous week, but still 5.2% lower than in 2019. For Germany, sales in the first post-lockdown week rose just 0.5% through all channels. By the end of June, sales in the country were down 8.3% on the previous year.
Countries where shops stayed open also struggled as consumers stayed at home. The total market was down 5% in May in Norway, and 4.6% in Sweden, where bookstores were down 35.4%. In Latvia, a large bookstore chain reported sales down 15% by value in the year up to mid-June. In Denmark, one of the largest bookstore chains went bankrupt by the end of April.
However, there were bright spots for some countries. In Finland, growth in online sales, particularly e-books and audio, ended up “more or less offsetting” losses in physical sales, the report said. By early June, Sweden's market, including its ever-growing subscription services for audiobooks, was at the level of the previous year. And in the Netherlands, the market for trade books between mid-March and mid-June was down just 1%, with online sales up 33% and offline sales down 24%. Altogether, sales until mid-June for trade books were up 2% by value.
The report states: “It is difficult as yet to make forecasts on the global impact of the crisis for the year 2020, but it is clear that it has damaged the sector severely, introducing an element of great fragility in an industry that was characterised by a healthy but delicate balance. On one hand, there is the negative impact on sales and revenues that has already materialised, often very strongly. On the other, there are the dynamic effects of the increased fragility and of other circumstances related to the crisis, that might spell further trouble for the sector, including in countries so far left relatively unscathed.”
The FEP noted easing of lockdowns had led to less “gloomy” outlooks but the overall picture remained worrying. According to the report, market surveys show the annual trend for sales in France was down 7% by value. However, a government study estimates the loss for the year is actually 23% for publishers and 24% for booksellers.
In Greece, annual sales are estimated to shrink by 10-30%. In Denmark, 58.6% of publishers estimate turnover for 2020 to be lower than expected, with 27.6% expecting a decrease of 21-40% and 3.4% a decrease of 41-60%. In Italy, 20 to 30% of the total market for the year could be lost.
The report goes on: “Despite a few exceptions, the restart has been generally difficult for bookshops and sales outlets, with falling demand from readers and insufficient financial resources identified as the main factors of fragility for the resumption of activity. Understandable safety measures will mean that activity in bookshops will not go back to normal for at least a few more months. Should more bookstores end up shutting down for good, the damage will be both amplified and made more permanent. The shift of sales towards online and digital channels, in addition to not compensating in most cases for the loss of physical sales, means that a higher volume of sales stems now from less profitable segments.”
It concludes: “Targeted support measures would greatly help to address the fragility of the value chain and to prop up the sector’s resilience, thus enhancing the chances for a swift and widespread recovery. The book value chain has been affected differently in each country, and the impact of the crisis will be felt over the months and maybe years to come. It is indispensable for public authorities to take appropriate measures to repair the damages and rebuild the future.”