The internet may have come to dominate much of our lives, but there’s still a demand for places to gather and connect with other people. High tech simply cannot satisfy some of our needs for high touch.

Entrepreneurs from four countries gathered to discuss the opportunities to put a new vision to today’s bookstore.

During last week’s workshop, Owning a Bookstore: The Business Essentials, eighteen entrepreneurs from four countries gathered to discuss trends, develop competitive advantages, learn the book industry’s metrics and best practices, and chart a course for owning a bricks-and-mortar bookstore in the age of technology. While some still used their gadgets to take notes or check messages, the conversation throughout the week kept coming back to the hunger for a sense of place, a healthy environment to learn and grow and gather, the satisfaction from holding a book and turning its pages, and an appreciation for the many ways in which locally owned businesses contribute to their communities.

The growth of e-book sales has slowed and will eventually plateau. Rather than replace books in print, e-readers have simply offered yet one more option for ways to read. E-books have certainly added some turmoil to the book industry and the bookstore business, but by no means will they lead to its demise. While electronic reading represents a little over 20 percent of sales, printed books command the overwhelming share of industry sales.

Format alone does not define a bookstore that sees its mission as far greater than selling books as commodities. A bookstore can be so much more than a place to buy books: a place where we can escape from the hustle and bustle of our daily lives, find comfort and peace, stimulate our minds, stretch our understanding of ourselves and the world, connect with others, create community, and contribute to a sustainable local economy. More than ever, there’s a need for high touch in this world of high tech.

Quaint places to gather, rest, and connect make a great community.

For many of us who have spent time in corporate settings, the decision makes perfectly good sense. When big-box stores were all the rage, B&N seemed to be opening stores in communities large and small. Even into the ‘90s, those big boxes were filled with lots of books – not necessarily a greater selection of books within a subject category, but multiple copies of the same title just to fill all that shelf space. Because publishers offered quantity discounts and additional co-op funds, retailers like B&N got a better deal the more they bought. That not only resulted in a huge outlay of cash, but they often returned 30 to 40 percent of that stock (indies average 11 percent returns) when it didn’t sell through in a timely way. Imagine the labor costs of ordering, receiving, shelving, and returning books. Then add the freight costs.

Enter the 2008 economic crisis, followed by the growing acceptance of e-reading, and their retail strategy proved unsustainable. The company held long-term leases with suffocating overhead, and had devoted more and more space to marketing e-books, where the profit margin was considerably less than it is with print books. If ever there was a time to change course, this is it.
Without Borders and now with B&N exiting many markets, opportunities await the entrepreneur. The Pew research has shown that avid readers who read electronically are still buying an equal number of printed books. People still love to hang out in bookstores, because that’s where they discover great new books to read. In growing numbers, people are joining the “indie” movement and prefer to shop locally. Publishers and authors still need face time with readers. Consumers still long for meaningful “third places” to feel connected with others. Buying a book online makes it a commodity; but books are so much more than an addition to a shopping cart.
If you’ve dreamed of opening a bookstore, but have been scared away by the mass media yet again proclaiming that books and bookstores are dying, think again. Corporations who once dominated a niche market are now shifting their resources, leaving opportunities for indie entrepreneurs.

Many national retailers struggled to not only get people physically into their bricks-and-mortar stores, but also eroded profits by discounting to drive sales, believing that even a modest gain was better than a record loss.

Holiday cheer at the new location for Litchfield Books

There was quite a different story for booksellers, according to this week’s report from Publishers Weekly. Brookline Booksmith, an award-winning indie bookstore, reported a “stellar year.” The Book Cellar in Chicago boasted a 38% holiday increase, and Beaverdale Books in Des Moines noted being up 29% for the entire year. In previous updates from Publishers Weekly, Andersons Bookshops in the Chicago area, BookPeople in Austin, and a number of others also reported strong holiday seasons.

How do we explain these double-digit increases in sales at indie bookstores that generally offer no discounting? What’s even more noteworthy is that this year lacked the mega blockbusters like last year’s Steve Jobs biography, and e-book sales continue to increase (yet at a much slower rate). If you’re thinking of opening a bookstore or buying an existing store, you might want to ask yourself the same question … what’s special about indie booksellers that they would outpace national retailers?

Maybe a growing number of people want to unplug from the hype and experience something authentic. Perhaps shopping at a place where you can browse “real” books is appealing in a society where a frenetic pace has become the “new normal.” Having someone smile and offer to gift wrap your book for free? How refreshing. Hanging out in a place that won’t text you an offer while you’re browsing, but will offer some delightful personal recommendations? That’s where I want to be – and suspect that I’m not alone!

Sensible family-owned businesses don’t generally jump at the latest trend or rely on hype and bling to connect with customers. While national retailers scurry for the latest high-tech tool or play games with prices, indie business owners will do what they do best: present really great merchandise, invite you to come in and feel comfortable, be welcoming and genuinely nice on a human level, and be incredibly grateful that you choose to support a local business.

Bravo, indie booksellers for a stellar season! The “Indie” and “Shop Local” movements continue to gain momentum, and you’ve proven that the most important business strategies are not only fundamental, but timeless as well.

The railing opened the entrance and the stairway to the lower level.

Last week we applied the finishing touches at Left Bank Books in St. Louis, MO, the amazing indie bookstore with a fun and funky personality and a fabulous reputation for staging events. Early in the week, Dennis Jakovac with St. Louis Stair & Wood Works was in to install a beautiful new wrought-iron railing. Rather than have customers feel crowded the moment they entered the store, we chose to add a little breathing room by opening up the entrance to the staircase … and encourage customers to come in, take a deep breath, linger, and be prepared for delicious book discoveries.

The front of any store is key real estate – especially to the right of the entrance – so we rearranged the bestsellers and new releases for fiction and non-fiction. Fixtures were moved, painted “junktique” tables were added, and we filled the focal point tables with books “of the moment.”

The Children's Department now has a space of its own.

The children’s section had been stuffed into a corner along a back wall beyond hardcover fiction, but it was not a place you’d want to linger. This entire department was moved to the back of the store where the far wall was painted a beautiful blue and a wrought-iron chandelier was added to catch the eye and help identify this special area.

Adjacent to the children’s department, we created a section called “Comforts of Home.” Cookbooks, a top selling category with high inventory turns, was expanded to two cases and two feature tables. Gardening, interiors, crafts, and etiquette are also grouped in this area.

At least four oversized island cases, one bulky table, a number of cardboard dumps, and a few wire spinners were removed from the sales floor. Their presence was unnecessary given stock levels and they impeded the flow of traffic through the store. Because of their height and heft, the extra fixtures created visual barriers as well – they were simply in the way, contributed to the clutter, and needed to go.

Magazines that relate to news and current issues face the Non-Fiction new releases.

Magazines sales at the store had been on the decline, just as they are nationally. So we clustered art and design magazines on one side of the cash wrap facing those sections and relocated the weekly magazines that report on world affairs to the cash wrap side that faces the front of the store and new non-fiction. That way, they’ll get noticed by the customers who shop those topics.

Gifts and non-book items (terms we much prefer than “sidelines”) had been clustered on tables in the far corner of the store and completely lost. The solution was to cross-merchandise those items throughout the store where they would make for delightful discoveries.

Fiction, the bestselling section in the store, gets a focal point display filled with important new releases.

Most gratifying about the project were the customer comments we heard while wrapping up the make-over. “I’ve been coming here since the 1970s,” one customer noted. “The changes are remarkable and give the store a lively feel.” A family quickly made their way to the new children’s department where the kids grabbed some books and sat on the bench in front of the display window. The mother commented, “Wow, look at the new space for kids’ books!”

After all of the pieces were in place, do-owner Kris Kleindienst wrote, “With Paz’s expertise outside perspective we were able to finally achieve a beautifully thought-out, relevant, unique and gorgeous new feel to our store without sacrificing our identity.”

Repurposing tables and stacking them gave us more focal point display space. Here's a spotlight on poetry.

It’s remarkable what a new vision, some paint, rearranging fixtures, regrouping sections, adding a few unique tables in key spaces, and some cleaning and clearing can do! You’ll find more photos on our Facebook page … and in the autumn issue of our free e-newsletter, indie bookstore entrepreneur.

There has never been a time when offering an enriching, rewarding sense of place has been more important. Let’s keep giving our customers reasons to say, “Let’s go to the bookstore!”

Surprise! A railing from years past remerges at Left Bank Books.

Since there was more than 1,000 square feet of merchandise downstairs, one of our priorities was to make the staircase more visible. So we proposed tearing down one side of the short wall with bookcases, and replacing it with a beautiful new wrought iron railing that reflected an important element from the building’s exterior as well as the charm of old St. Louis.

Last night, after the store had closed, demolition of the wall commenced. What a surprise to see what was uncovered underneath the drywall … a wrought iron railing! Though it may have been original to the building, its design and construction was unsafe and would not meet current code requirements. So we’ve arranged for a local business, St. Louis Stair & Wood Works, to install a new wrought iron railing, not only to restore authenticity to the space, but also to make the stairs leading to the lower level a focal point upon entering the store.

Now we’re off to do the section moves and merchandising this week and will post new photos next week to show how some design elements and a splash of color can make all the difference in how customers experience the space – and how much they buy.

The moral of the story is, “Be prepared to be surprised.”

As a result, September has been a busy month at Left Bank Books. In addition to the make-over and their typical robust line-up of events, a lot of planning went in to the Sept. 24th hosting of Tony La Russa, former manager of the St. Louis Cardinals, who launched his memoir, One Last Strike, celebrating 50 years of his baseball career. They needed ten additional staff to accommodate the number of fans expected, and wound up selling 1,400 copies of his book!

Adding color helps define the space and helps attract customers deep into the bookstore space.

For the make-over, Jay was able to do much of the painting during the last couple of weeks and we’re already seeing results. The purpose of choosing new paint colors was to delineate different areas of the store, since it had grown to occupy three storefronts over time. The first two sections are separated by a wall with beautiful curves and architectural detail at the top. Our design team selected a paint color called “camelback” to help those details stand out a bit more, lending a softer feeling to the store than the stark white that had been on all the walls and ceiling. Then, to attract customers’ eyes and pull them to the back of the store, the team chose a “reflecting pool” color (aqua blue) for the back wall which will soon house two important departments: Children’s and Comforts of Home. Two other colors were introduced as well: a sassy green for the front entrance, and a “cajun red” for some display tables.

For stores like Left Bank that have been in business for years, it’s fairly common to find them feeling a bit too full. Spinner racks and publisher “dumps” find their way onto the sales floor, but never seem to leave. One section spills over to another and starts to feel disconnected. So in addition to suggesting new paint colors, some accent lighting, and calling more attention to the staircase leading to the store’s lower level, perhaps the most important part of the make-over was to re-imagine the planogram – moving sections around for better traffic flow and dedicating a larger space for the children’s department. A planogram is just a simple term for the map that shows what goes where, using prime spaces judiciously and grouping like products based on who shops there. It’s a fun exercise that begins with a review of sales and inventory turns by section.

Working at the mall back in the 1970s, I never realized that the skills I was learning – working with a planogram and seeing how displays were planned during the buying season – would be put to such good use decades later. As the seasons change and as a store grows through the years, it’s a good idea to start fresh with a blank canvas and decide how much to invest in which types of merchandise … and change the sales floor to reflect the inventory and merchandise mix.

Fabric for the new seat cushion on the rocking chair for the kids section

The two areas at Left Bank Books that I get most excited about are the front entrance and the children’s area. Yesterday I stopped by our local upholstery store to look for some fabric to cover the seat of an adorable wooden rocking chair that Kris discovered. The striped fabric was perfect complement to all the colors we selected for the store.

With a little bit of paint, fabric, some new lighting, and a new planogram, Left Bank Books is well on the way to looking dramatically different. We’ll return to the store on October 10th to work with the staff on rearranging some sections, put some finishing touches on focal point displays, and listen for customers who say, “What a great bookstore!”

This is what you see upon entering the store. There is a stairwell behind the case which leads to a large (and important!) lower level.

What’s on the list of possibilities so far?
1) Develop a ‘Wow’ factor at the front entrance
2) Make the staircase leading to the lower level more obvious, since it’s now usually overlooked
3) Relocate the Children’s Section to a separate department, giving this important category a space of its own
4) Change interior fixture layout to provide more focal point display space
5) Develop a more consistent visual identity through signage and messaging
6) Regroup merchandise based on customer interests
7) Spotlight their knowledge and love of books by creating some stunning displays

We went into the back room to find items we could use to merchandise focal point displays.

So we’re looking at light fixtures and paint colors, replacing a low drywall on one side of the stairwell with a new railing that would open up the passage to the lower level, refinishing tables stashed away in the basement (and the owners’ garage), creating new section signs and shelf-talker templates, and rearranging current fixtures. Oh, and finding a special place for two unique wooden chairs donated by local artist Mary Engelbreit! There’s so much potential with what already exists within the four walls.

Jay is also posting on his blog – www.JarekSteele.Wordpress.com – updating customers with details about the make-over and the process of planning for the store’s next chapter in its 43-year history.

“Our goal was to select one project that would help illustrate affordable solutions to issues that many bookstores have in common,” noted founder Donna Paz Kaufman. “Left Bank Books provided the perfect combination of opportunities,” she added. In the store’s application, owners Kris Kleindienst and Jarek Steele commented, “Frankly, it’s looking really tired at this point and the layout does not work for us at all anymore.” In addition to their design and merchandising expertise, Paz & Associates will contribute $2,000 for upgrades and materials, with labor provided by the store.

The design group at Paz & Associates will address display windows, the front of store experience, traffic flow throughout the space, focal point displays, signage and promotional messaging, the “Wow” factor for creating word-of-mouth marketing, and event staging. The project has an October 15 completion date. Watch for updates on this blog!

Roberta Rubin, Ann Kingman, and Michael Kindness, recipients of this year's Publishers Weekly Awards

This year’s Bookstore of the Year Award was given to The Book Stall at Chestnut Court in Winnetka, Illinois, just north of Chicago. Six members of the staff, including owner Roberta Rubin, traveled to New York City to accept the Award while over a thousand of us book industry professionals cheered their dedication, creativity, and expertise in promoting books and reading. The store opened in 1940 and this is the store’s 30th anniversary under Roberta’s stewardship.

Why was the store worthy of this award? Their success comes from a dedicated owner and equally dedicated staff who welcome writers at all stages in their careers with events they orchestrate on the North Shore and in downtown Chicago. They write delectable reviews in their monthly print newsletter. They send out hundreds of children’s books each month as gifts from parents and grandparents who care that their children fall in love with reading early in life. Their selection is thoughtfully tailored and carefully monitored. They nurture relationships with publishers and authors. They love ideas and beautifully crafted stories, and love sharing those stories with customers.

Roberta, known as the “Godmother of Books” in Chicago, has defined success not just by her salary and the store’s profitability, but by being a small business owner who leads a team that loves what they do, contributes to local charities, fosters community by being Winnetka’s gathering place, champions authors and their books, and reminds us to savor our time to read and all that reading brings to our lives.

Michael Kindness and Ann Kingman, sales reps for Random House, together won this year’s Rep of the Year Award. Usually, sales reps work alone, crisscrossing their territories to work with their bookstore clients. Michael and Ann decided to collaborate — and the duo is adored by all of the New England booksellers who learn from them about new books being launched as well as benefit from their efforts to bring great new books to readers.

Since 1993, Paz & Associates has facilitated both awards for Publishers Weekly. The time it takes to call for nominations, gather the submissions, form the juries, and notify nominees is some of the most gratifying work we do all year. All who make a living by working in the book community also make a life — where success is defined by just how much we are enriched by our work. Nearly everyone at the awards presentation that morning in early June at BookExpo had careers more like a calling, representing meaningful work with collaborative relationships. Kindred spirits filled the hall in New York City that day — sharing a common love of words and celebrating an uncommon definition of success.

Jeff Kinney, creator of the Diary of a Wimpy Kid series, wildly popular among the middle school set, won the Author of the Year award after being nominated all five years of the award’s existence. His series stars the gangly, under-sized weakling sharing the hallways with kids who are taller, meaner, and already shaving. Many of us can certainly relate.

Brian Selznick won this year’s Illustrator of the Year award for his illustrations in Wonderstruck. At an author’s breakfast at BookExpo America last year, Brian (a former children’s bookseller at Eeyore’s Bookstore in Manhattan), came to the stage sporting red shoes and showed us slides of his apartment where hundreds of illustrations from the book decorated the walls of his studio. We were, in a word, wonderstruck – not only by the story-line, but also by the time and effort that went in to the creation of such richly nuanced drawings.

Maurice Sendak's beloved Where the Wild Things Are

Then there’s Maurice Sendak. Looking back on his life, we can say that this amazing soul touched many lives with his magnificent and timeless works. I remember hearing him talk about his painful childhood and how those memories still lingered. Where the Wild Things Are expressed that common fear of what’s under the bed — and gave us permission to face our fears. Maurice Sendak will live on through the wonderful books he left us.

It’s no wonder that people continue to be drawn to the book industry, whether as an author, publisher, or bookseller. One thing is for certain – there’s a place for everyone and a book that has the potential to make a lasting impression.