Companies in this industry sell books from physical retail locations; they may also sell via websites. Major companies include Barnes & Noble, Books-A-Million, and Follett (all based in the US), as well as Fnac (France), Kinokuniya (Japan), Page One (China), Thalia (Germany), and WHSmith (UK).
Demand is driven by demographics and consumer income. The profitability of individual companies depends on merchandising and marketing. Large companies can provide broader selections and lower prices. Small companies can compete by offering specialized products or serving a local market. The industry is highly concentrated: the 50 largest companies account for about 85 percent of sales.
The industry is segmented into general, college, and specialty bookstores. General bookstores sell mostly trade books (fiction, nonfiction, adult, children’s); college bookstores, mostly textbooks; and specialty bookstores, mostly religious books. Trade books account for about 35 percent of sales, textbooks for nearly 30 percent, and religious books about 5 percent. Bookstores may also sell music, DVDs, magazines, and gifts.Buy Now