Crain's New York Business - By Matthew Flamm
Borders, the No. 2 brick-and-mortar bookstore chain, is teetering on the verge of bankruptcy, hammered by online discounting and the explosive growth of e-books. Barnes & Noble, the biggest chain, is so focused on digital expansion that last month it fired many of its top executives who dealt with physical books.
But all is not lost in the world of traditional bookselling. In retailing's version of a David and Goliath story, the independent bookstore is making a comeback in New York.
That's right: in the land of crushing rents. Over the past couple of years, more than half a dozen indie bookshops have opened around the city, from Greenlight Bookstore in Fort Greene, Brooklyn, to Book Culture on upper Broadway. (Another independent store may soon appear in midtown Manhattan.) The shops have been launched by both first-timers and veteran entrepreneurs, and though their long-term survival is far from assured, the new businesses are succeeding, thanks to smart merchandising and carefully chosen locations.
Their presence is not just good for publishers who rely on the indies' 10% market share to help launch new writers. They're also a sign of a larger truth in business: that nimble operators can adjust to a changed landscape better than some bigger players.
“If you do your numbers right, it can work out,” said Robert Fader, who runs Posman Books in Grand Central Terminal.
The bookseller added a second location, at Chelsea Market, in September 2009. Sales at the new 2,000-square-foot store were up 22% in January year-over-year, despite last month's snows. First-year revenue came to more than $1 million, or good enough that the bookseller and its landlord are putting final touches on a 10-year lease.
Mr. Fader adds that he's planning to renovate the store in March, and is close to signing with another landlord for a smaller space in midtown.
Read the full article at Crain's.
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