2 of 5

Many industry insiders who look at Christian store closings point to undercapitalized stores with undertrained owners. Even when a storeowner is successful, when it's time to retire, he or she discovers that it's difficult to sell the business. Andy Butcher, editor of Christian Retailing magazine, notes: "Consolidation has also been a major, more recent trend with the Christian chains acquiring some of the long-time independent stores whose owners were coming to the end of their career life."

Of CBA's current retail membership, 46 percent are single-store independent retailers, 39 percent are chain stores (including nationally owned large chains and smaller, independent city or regional chains), and 15 percent are campus, camp, or church bookstores (see "Bringing the Bookstore to Church").

Consolidation here is comparable to what's happened in the drugstore and hardware industries. Family Christian Stores, LifeWay Christian Stores, and other large chains, with a range of 25 to more than 300 stores, bring efficiencies to the marketplace. Many independents join marketing groups and associations, some numbering as many as 600 members (Munce Group). Then they can gain access to slick catalogs, conferences, consulting, and group purchasing, while keeping their autonomy.

Even so, it can be tough to sell books. Jim Seybert, an Arroyo Grande, California–based consultant, says that 41 of 100 people he surveyed for Christian Retailing reported frequenting Christian retail stores less often in 2007 than in 2006. The most common reason given was more convenient online buying, followed by pricing and selection issues.

More troubles: Britt Beemer, president of America's Research Group, says Christian retail needs new "AA" locations. Think upscale lifestyle centers with a Brio Tuscan Grille or P. F. Chang's. "When we ask consumers why they don't shop at a Christian bookstore, they say they don't have one to go to. It's a visibility problem. When you have a 'C' location, you doom yourself in the beginning." Beemer also says some Christian bookstores "look terrible from the outside and don't advertise well. Many look like 1955 and have stayed there."

But, Anderson insists, most Christian retail stores are not just surviving—many are thriving. "Numerous stores tell me about growth—some even double-digit growth—and about plans to open new stores. These are stores that have created a unique shopping experience and made real connections with their customers so that there is clear value to shopping in their stores."

CBA is working to get retailers up to speed. The association recently scrapped its beleaguered winter trade show when vendors complained that fewer and fewer retailers were showing up. Instead, the association held a three-day CBA Industry Conference in Indianapolis this past January to identify problems and brainstorm solutions. Retail everywhere is "going through massive change and re-evaluation," Anderson says. "We are looking for new business models, new formulas. We have to rethink, reposition, and rework."

With sales to so many new market channels, one might wonder if Christian publishers need Christian bookstores anymore. A recent survey showed that 52 percent of Christian products (not just books) are sold through Christian retail stores. That does not mean that Christian retail is the primary channel for these publishers. Fiction, an important category for many Christian publishers, often finds a home in alternative channels. Bethany House (with best-selling authors Beverly Lewis and Janette Oke), a division of Baker Publishing Group, sells about 70 percent of its fiction outside the CBA, according to Carol Johnson, vice president of editorial.

next page... |  2 of 5

share this page

April 2008, Vol. 52, No. 4