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Apr 14, 2008 -- Chain bookstores facing competition from warehouse clubs

The book business has been through such tumult. Clark's books have been available via warehouses clubs, independent bookshops and chains like Barnes & Noble and Borders. An indie bookshop owner once yanked a title of his off the shelf when he did a book signing at a Sam's Club. In her mind, Clark was being unsupportive of indie booksellers in an era when they had fierce competition from the chains.

But what goes around comes around. Now Barnes & Noble and Borders are having a tough time because they can't compete with the warehouse clubs, online retailers and discount retailers like Wal-Mart and Target. So it's the chains that now are in a squeeze play. The indie booksellers who have survived figured out how to offer great customer service and cater to special niche audiences. Where is the room for the chains in the middle market? No one knows. Wouldn't it be ironic if the way people end up buying books again is at indie stores, warehouse clubs or online?

Warehouse clubs are not like normal book stores. They offer a fraction of the selection an indie retailer might have, but they sell their stock extra cheap. A new title from a well-respected author might only get a short run in the inventory. Yet one third of people bought a book at a discount store just last year. The Washington Post reports many authors now do book signings at Costco rather than at Barnes & Noble or Borders. Clark is on Borders' e-mail list and they're getting more and more desperate with the deals they send him. If you're an indie bookshop, it's got to be sweet revenge to see the chains struggling.

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