Bookstore Industry

Topics: Books, Bookselling, Retailing Pages: 2 (432 words) Published: September 26, 2010
Industry: Bookstore in the U.S
NAICS Code: 45121
Industry Overview
The players in this industry are retailers of books and newspaper merchandise which include items such as trade books, text books, magazines, paperbacks, and religious books. The goods are purchased from domestic manufacturers and wholesalers in which they will be sold back to the general public. Bookstore retailing also include national, regional chains, and independent local bookstores. The industry can also be segmented into general (60% of sales), college (30% of sales), and specialty bookstores (10% of sales). General bookstores tend to sell trade books (fiction, non-fiction, children’s), college bookstores carry mostly textbooks whereas specialty bookstores mostly sell religious books. However, they may also sell music, DVD, and gifts. The bookstore industry has entered the maturity stage of the product lifecycle characterized by declining enterprise numbers, falling product margin, and saturated players. Within each product segment, the range of books offered by the industry players is relatively identical. Demand for the products is driven by demographics and consumer income. According to the IBIS report, the demand for books will grow over the five years but revenue will gradually disappear from the industry and will be passed to online retailers of digital books. On the other hand, the profitability of individual companies is also highly depends on merchandising and marketing. The more comprehensive the items’ selection and the better marketing communication strategy used, the more profitable a company will likely to be. Major Players

According to the IBISWorld, the total industry sales are around $17.1 billion with the top 4 major players: Barnes & Noble, Borders, Follett Corporation, and Barnes & Noble College Bookstore. Below is the estimate amount of sales generated in 2010 (year end January) and the market share held for the top 4 companies: Companies| Sales ($ in...
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