Distributor IPG told clients in an e-mail (now cited on multiple websites) that Borders “tell us that they will not be paying us for two months due to anticipated excessive returns.” In the letter, clients were told that for new shipments to Borders, the distributor will guarantee only the actual printing cost of those books, for as long as “there are serious concerns about Borders viability.” IPG president Mark Suchomel tells us that “almost all of the clients” have instructed the company to continue shipping orders to Borders. He notes that “we’ve typically been very conservative and that’s been a […]
Bookstores
Riggio: Prepare for A "Terrible Holiday Season"
The WSJ reproduced an in-house memo to Barnes & Noble employees sent last week bychairman Len Riggio: “Never in all of the years I’ve been in business have I seen a worse outlook for the economy. And never in all my years as a bookseller have I seen a retail climate as poor as the one we are in. Nothing even close.” He warns, “we are bracing for a terrible holiday season, and expect the trend to continue well into 2009, and perhaps beyond.” Riggio announces that “new store openings will be curtailed greatly, and discretionary expenditures will be cut […]
Meanwhile Borders US Loses Credit Cover
Credit insurer Euler Hermes told publishers on October 17 that it was reducing its cover for vendors of Borders in the US to zero. The Bookseller, which has seen the document, reports that it “said the move is related to Borders Group’s continuing losses.” Recently, we’ve heard of major US publishers looking anew at whether to take out their own credit insurance policies to cover their inventory at Borders in the event of a bankruptcy. The policies can be very expensive, and in informal polling we’ve heard of one big six publisher that did take out a policy and one […]
Test Program for Universal Online Catalog
The innovators at Above the Treeline will begin testing an online interactive catalog of books from multiple publishers. The six-month pilot program features books from Chronicle, Harper, Wiley, Penguin, Random House, Simon & Schuster, Thomas Nelson, and Tyndale House. Called Edelweiss, the new interface aspires to let retailers “manage their catalogs easily in a single online library, to view dynamic, enriched content about new titles, and to efficiently integrate orders and bibliographic information back into their point-of-sale systems.” CEO John Rubin explains to BTW that they have tried to redesign the catalog to work as an interactive online product rather […]
Focus on Penny's Team at Costco
The “cover story” in the current issue of Costco’s member magazine dubs the warehouse clubs “the big little bookstore” and looks at how Pennie Clark Ianniciello and her three assistant buyers have built “one of the top five booksellers” in the country. Carrying only about 200 titles at any given time, they say “it’s not uncommon for Costco to purchase 20 to 25 percent of a new book’s first printing.” Harper vp of sales Jeff Rogart concurs that “Costco is consistently one of our top retailers for total sales and frequently ranks number one or two on individual titles.” But […]
New Wrinkle for Bookstores: How About a Liquor License?
Schuler Books and Music has four stores in Michigan; “all of them have fireplaces and cafes and are designed as comfortable places to hang out.” Now, in their newest location in downtown Grand Rapids, they “may get a liquor license in two to three months, and that innovation may solve the problem all downtown small businesses have — slow evening and weekend business.” Co-owner Bill Fehsenfeld says, “The vision is it’s an enhancement to the bookstore and our cafe and provides an alternate place where people can relax, browse the books and enjoy food from our cafe. We’re feeling this […]