Bookstores

The US bookstores industry includes about 10,000 stores with combined annual revenue of about $17 billion. Major companies include Barnes & Noble, Borders Group, and Books-A-Million. The industry is concentrated: the 50 largest companies account for about 75 percent of sales.

The industry includes companies that operate physical retail locations. Online booksellers, such as Amazon.com, are covered in the industry profile for Internet and Catalog Retailers.

COMPETITIVE LANDSCAPE

Demand is driven by demographics and consumer income. The profitability of individual companies depends on merchandising and marketing. Large companies can provide broader selections and lower prices. Small companies can compete by offering specialized products or serving a local market. The industry is labor-intensive: sales per employee are about $120,000. Sales per employee tend to be lower for smaller, independent bookstores. Major competitors include mass merchandisers, warehouse clubs, Internet retailers, and mail order catalogs.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry is segmented into general, college, and specialty bookstores. General bookstores account for over 60 percent of sales and college bookstores for 30 percent. General bookstores sell mostly "trade" books (fiction, nonfiction, adult, children’s); college bookstores, mostly textbooks; and specialty bookstores, mostly religious books. Bookstores may also sell music, DVDs, magazines, and gifts.

Bookstore retailing includes national and regional chains and independent local bookstores. The dominant chains have “superstores” that can exceed 20,000 square feet, and usually anchor large strip malls in high traffic areas. Chains also have bookstores located in indoor ...