A Plethora of Retail Space Doesn’t Necessarily Mean Lower Rates for Bookstores

If you’ve been following the business news on the many retail store and chain closings in this first part of the year, it may seem like good news for start-ups, but not so much.

Live music sponsored by the Centre Street merchants of historic Fernandina Beach, FL

Live music sponsored by the Centre Street merchants of historic Fernandina Beach, FL

The closings still appear to be about two main shifts: 1) away from big-box footprints, and 2) and to online shopping for products that can be considered commodities.

Are books commodities today? Well, to some people … those who know what they want, want it fast, want it at the best available price, and don’t value the in-store experience of shopping in a bricks-and-mortar bookstore.

Yet the competitive advantages for indie bookstores is generally about a thought-filled selection, staff recommendations, mindful displays, events, and that special feeling of being in a sanctuary for those who read, value local businesses and their contributions to culture and the local economy.

Indie bookstores tend to do best in Main Street destinations, not big-box developments and strip malls. These are quaint villages and clusters of cafes and shops that offer unique merchandise and a delightful browsing experience. These are places people love to linger, meet up with friends, and enjoy the moment. Their rents tend to be higher because they are tend to always in demand.

So, while the new vacancies in malls and strip centers are many, the over demand will likely not push rents lower in Main Street locations.

It’s still true that much of a retailer’s success is about location. While the big-box spiral down continues, this is an opportunity for Main Street merchants to regain local business by showing there are a lot of things you simply cannot get while shopping online.

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