No Next Item No Next Conference Can't Favor Can't Forget Item List Conference Home Entrance    Help
View Responses


Grex Agora41 Item 243: Borders: The Fox in the Henhouse?
Entered by anderyn on Fri Jun 7 01:13:52 UTC 2002:

Excerpted from the Monday edition of "At the Back Fence"
(url: http://www.likesbooks.com/139.html)
Remember when it was revealed a couple of years ago that Amazon received
payments from publishers to "recommend" certain books? That's going to seem
like nothing when you hear what Borders has planned, which is the
implementation of more grocery style-selling beginning later this year. If
you ask me, it's more than letting the fox into the hen house, it's letting
the fox run the hen house. 

As recently reported in Publishers Weekly and The Wall Street Journal, Borders
chairman and CEO Greg Josefowicz plans to implement a "category management
program" this year. Josefowicz, who came to Borders from the grocery/pharmacy
retail industry, developed the category management program when he was
president of Jewel/Osco, and what was good for the bottom line where soap and
beans and Epsom salts is concerned, will apparently be good for books and
Borders' bottom line. 

Borders will divide its book inventory into categories and invite publishers
to "captain" said categories. HarperCollins, for instance, will pay some
$110,000 annually plus $5,000 per employee to helm the romance category. As
you may know, HarperCollins, which is owned by Rupert Murdoch's The News
Company, publishes romances/women's fiction under its Avon, Harper Torch, and
William Morrow lines. The money Borders receives from these publishers will
fund market research that will eventually determine where - or if - books are
placed in its stores. 

Publishers who pay to captain a category will, as has been reported, co-manage
the category, and will influence Borders' buying decisions - including which
titles, and how many - will be bought. The questions raised in the Publishers
Weekly article are obvious; how will books by other publishers fare in such
a system? Will a sort of quid pro quo develop - ie, Publisher A will
"influence" the purchase of books by Publisher B if Publisher B will
"influence" the purchase of books by Publisher A? What will happen to small
publishers who do not have the money to buy a category's captaincy? 

I've long feared the concept that a book can be treated like a grocery store
item. Indeed, in a column I wrote in August 1996, I talked about the
then-burgeoning mid-list crisis and the fact that some would "market the genre
as though it were detergent." I felt a bit like Cassandra at the time, but
what Borders proposes to do scares me - it scares me a lot. Not to get all
political on you, but the idea of publishers stocking the bookshelves reminds
me of lobbyists who write the laws governing the industries they represent.
To me, this plan of Borders' makes Amazon's sale of used books on the same
page as new books seem like much ado about nothing. I wonder how authors not
published by HarperCollins feel about their ability to sell books via this,
the second largest book retailer in the U.S. and Fortune 500 company, with
$3.4 billion in revenues, according to their financials. 

According to an article on the Dow Jones Newswires on May 21st, the argument
does boil down to: "Is selling books like selling frozen food?" The market
research that will be paid for by certain publishers will eventually determine
which books you find on sale at your local Borders. 

__________________________________________________________________________

Twila again: I'm going on a boycott of Borders, and will be writing the
company about my disapproval of this "payola". Nicola's will be getting my
business. What about you?

52 responses total.



#1 of 52 by johnnie on Fri Jun 7 01:44:09 2002:

Seems rather stupid (Border's scheme, that is)--if they have a weak 
selection (heavy on a particular publisher), people will go elsewhere.  
It's not as if different brand of books are interchangeable, like 
ketchup or beans.



#2 of 52 by anderyn on Fri Jun 7 03:14:11 2002:

But apparently the CEO seems to think they are. 


#3 of 52 by jmsaul on Fri Jun 7 04:27:03 2002:

Holy SHIT.


#4 of 52 by jaklumen on Fri Jun 7 09:17:04 2002:

This is bad.  You see, we just got a Borders in the Yakima area (not 
Yakima proper-- Union Gap) and people are excited somewhat, as the 
company's arrival is part of a large influx of businesses into Union 
Gap's Valley Mall.  It opened very recently, second after its neighbor 
Old Navy.

On one hand, this is a rural city, and it is very probable most people 
here won't care very much.  However, this may hurt those of us who 
like books that aren't consumed by the public at large.  To be 
specific, I think gaming books are going to be hurt-- a friend 
informed me their section is quite small.  Maybe it's not a big change 
from the Waldenbooks we had earlier, but we cannot count on Ron's; 
which is the local gaming/collectible dealership in town.  It is 
especially difficult for those of us who play White Wolf games.  B. 
Dalton is our only other choice, and it is rather necessary to order 
most of the books.

I was impressed with Borders when I visited A2.  This is truly sad.


#5 of 52 by mary on Fri Jun 7 11:36:08 2002:

Border's has moved so far from the original Border's I loved,
on State St., Ann Arbor, that the all that remains is the name.

The original Border's wouldn't even sell romance novels. 



#6 of 52 by md on Fri Jun 7 12:09:26 2002:

The various Borderses hereabouts (Farmington Hills, Novi, two in 
Birmingham, etc.) have been dreck warehouses for as long as I can 
remember -- the one at 13 Mile and Southfield goes back at least 15 
years.  Bestsellers, calendars, cutesy bookmarks, fash mags, tee 
shirts, tote bags.  But I will keep shopping there as long as they 
continue to carry such things as the Loeb Classical Library.  Until 
then, you can think of the store as a kind of book mall: mostly crap, 
but some very nice little specialty shops.


#7 of 52 by jmsaul on Fri Jun 7 12:17:31 2002:

I think of it as better than the other large bookstores, because it still is.
Not as good as a specialty store.  With this development, they'll drop to the
bottom of the pile, I suspect.


#8 of 52 by mary on Fri Jun 7 12:24:55 2002:

Boy, Michael, I sure do enjoy your Somerset though.  Yesterday I spent
the day there with a friend I hadn't seen in 20 years.  We had lunch at
Alexanders, I got to fondle the sphere fountain, and got away with only
two inexpensive purchases.

Even the air smells expensive.  Fun stuff.

I bought a paperback at Waldenbooks.  Waldenbooks knows how to be
a mall bookstore.


#9 of 52 by md on Fri Jun 7 12:44:20 2002:

Glad you enjoyed it.  That's long been the mall (sorry, "Collection") 
of choice for my kids, but I seldom go there anymore.  I like to 
Christmas shop there bettter than in downtown Birmingham, and that's 
saying something.


#10 of 52 by russ on Fri Jun 7 13:07:23 2002:

This is going to make it difficult to decide whether or not to
continue buying from Borders.  The little shoppers discount card
(privacy-invasion tool) used by Barnes & Noble mostly keeps me
away from there, but if Borders gets into payola for books I will
hold my nose and go elsewhere.


#11 of 52 by scott on Fri Jun 7 13:11:26 2002:

The downtown Ann Arbor Borders still has a great computer section, though.
Last time I was at the Arborland one I couldn't even find CDs by "The Red
Elvises" which the A2 store *did* have.  


#12 of 52 by rcurl on Fri Jun 7 16:03:09 2002:

I now buy almost all books on-line. It's the biggest "bookstore" in the
world, and the prices are the lowest when you look around, even having
to pay shipping. It isn't easy to browse, of course - you need to know
what you are looking for. 


#13 of 52 by void on Fri Jun 7 21:57:38 2002:

The last time I was in downtown Birmingham during Xmas shopping season,
there were loudspeakers on poles blaring Xmas carols in Shain Park.  The
only time I've been to downtown Birmingham since was a day or two after
my mother died, when my father took my us all to dinner at Peabody's
before going to the funeral home.


#14 of 52 by md on Fri Jun 7 23:33:19 2002:

I called it PEE-b'DEES when I first moved here, but the locals soon 
corrected my accent.


#15 of 52 by gelinas on Sat Jun 8 03:56:45 2002:

Russ, have you tried Nicola's, in Westgate?

Last I looked, Dawn Treader had the Loeb Classical Library, too.  So in Ann
Arbor, at least, we still have a choice or three. :)


#16 of 52 by jaklumen on Sat Jun 8 10:19:53 2002:

resp:8  Mary, are you aware Border's *owns* Waldenbooks?  I forgot to 
clarify-- when I learned that fact (I was looking for a job, see), I 
wondered if Border's would close our existing Waldenbooks.  They did.


#17 of 52 by mary on Sat Jun 8 11:12:17 2002:

Yep.  But I tend to think that Waldenbooks has figured out the
mall book buyer somewhat like Target has figured out the budget shopper
and given them what they want in a fun environment. 

But of course the day I was there I bought the cheap paperback and
then came home and ordered the hardcover on amazon.com for 30% off. 

I always feel guilty about doing that.


#18 of 52 by keesan on Sat Jun 8 13:18:34 2002:

The library buys 95% of the books that we ask it to.  We are in no hurry as
there are plenty of other interesting things to read while waiting.


#19 of 52 by rcurl on Sat Jun 8 15:44:17 2002:

You shouldn't feel guilty, Mary. It is the American Way, which we are
now being especially urged to follow.


#20 of 52 by fitz on Sat Jun 8 18:33:08 2002:

If Borders *really* wants to run the bookstore as if it were a grocery:
        Publishing houses would pay a bribe to get favorable (customer-
        friendly shelves).

        Book order would be altered so that one would have to shop the
        entire aisle to find what one wanted.  (This is why Meijer cereal
        aisle are so screwed up.)

        Publishers would have to pay a shelving fee to get a book into a
        store and nothing would ever be promoted without a per case
        allowance.

        Pressure would be put on the publishing houses to supply replenishment
        staff so that Borders can have minimal staff on hand.  Soon, every
        customer will have to first ask if an apparent employee actually
        works for Borders if assistance is needed.


#21 of 52 by oval on Sat Jun 8 18:52:32 2002:

you probably shouldn't even feel guilty if you walk in, take a few books off
the shelf, and then return them at the counter for store credit.

(large chains only)

but then i've never done that so i wouldn't know about the guilt.



#22 of 52 by gelinas on Sat Jun 8 22:41:07 2002:

I meant Shaman Drum, not Dawn Treader above. :(


#23 of 52 by jaklumen on Sun Jun 9 00:10:26 2002:

resp:21  now that's just underhanded and low-down-- you shouldn't need 
to stoop to their level. ;)


#24 of 52 by aruba on Sun Jun 9 15:12:45 2002:

Mary, why do you buy both the paperback and hardback versions of a book?


#25 of 52 by mary on Sun Jun 9 15:23:04 2002:

I didn't.  I bought a paperback thriller and a hardcover cookbook.


#26 of 52 by aruba on Sun Jun 9 15:24:23 2002:

Oh, I see.  I misunderstood #17.


#27 of 52 by jmsaul on Sun Jun 9 16:11:43 2002:

I did too.


#28 of 52 by jp2 on Sun Jun 9 17:04:29 2002:

This response has been erased.



#29 of 52 by slynne on Sun Jun 9 18:37:37 2002:

I think it is perfectly reasonable for people to buy books at the 
bookstore where they can get the cheapest prices, the best selection 
and the atmosphere they most desire. 

Nicholas doesnt seem a whole lot different than a large corporate book 
store to me but I do like browsing there sometimes. I never buy 
anything there though because I get a very good discount at Borders and 
Waldenbooks. Which is why there is no way #0 is going to get me to stop 
buying at Borders. 

My dream, though, is for someone to open a really nice bookstore in 
downtown Ypsilanti. I think that there is a very real niche market for 
an independent bookstore and the rents in Ypsi might be low enough to 
support it. I like funky little bookstores. Like everyone else, I miss 
having a bookstore in the area like the original Borders (which did 
sell romance novels, btw). The current Borders is way more like Barnes 
and Nobel than it is like the original Borders. Heck the only real 
difference between Borders and Wal-Mart is that a higher percentage of 
Borders customers are literate. I dont think it is possible to have a 
bookstore as wonderful as the original Borders in a big corporation. 
What the big companies do however is lower prices. If having 
independent bookstores is more important to you than price, then shop 
at those stores and pay the higher prices. 


Anyways, the article in #0 doesnt bother me at all. Either people will 
like it and it will mean more money for the company which will mean 
that the stock will go up which will mean my options will be worth 
more. Or...people wont like it and they will abandon it and that will 
be that. 



#30 of 52 by mary on Sun Jun 9 19:05:42 2002:

Hey, everyone's an editor.  It made perfect sense in my head. ;-)


#31 of 52 by rcurl on Sun Jun 9 19:30:56 2002:

In an earlier response I said I buy all my books on the web. That isn't
true. I do buy MY books on the web, but I buy most gift books in
bookstores. The reason is that, in buying a books as a gift, I am
looking for the impression of something I think will please the recipient.
That includes a lot more factors than those by which I buy a book for
myself, which is usually the result of reading a review, or seeking
something in my particular areas of interest. 


#32 of 52 by janc on Mon Jun 10 00:58:49 2002:

It's been sad watching the steady decline of the Ann Arbor Borders.  I 
hadn't actually expected it to keep going, but I guess I should have.  
Boy, it was a *terrific* bookshop once.

Nicola's is small and a bit spotty.  They do mystery pretty well.  It's 
obvious that whoever buys/shelves the books knows, reads, and likes the 
genre.  But they plainly don't have a science fiction Person.  That 
sectionn is as random as your average mall bookstore.

Once upon a time, in the Ann Arbor Borders, every single section was 
managed by a well-educated person who loved it.  The books that 
mattered were there and prominently displayed.  Re-issues of dumb books 
with a new cover did not appear in the new book shelf.  Heck, there was 
a shelf for interesting new releases, so regular shoppers could find 
out what was new at a glance.  If you asked a staff member a question, 
you got an intelligent question.  I remember hearing the guy who did 
the computer section give someone a rundown of the strengths and 
weaknesses of the various HTML books (he was one of last of the old 
timers to leave, but he's gone now). It was obvious that he knew what 
HTML was about, and had looked through all the books in detail.  I 
remember someone asking a person at the cash register about some 
obscure political science book.  The cashier couldn't leave his 
register to show the customer the book, but he could describe exactly 
what shelf the book was on and how many copies were there.

It's weird that the franchise took over the country while dropping 
everything that made the store great.  Working the shelves at Border's 
used to be a prestigious and highly sought after job.  You pretty much 
needed to have a PhD or at least an ABD to get a job there.  They'd 
give applicants rigorous examinations to weed out all but the most 
overeducated.

Re fitz:  Um, are you under the impression that those things *aren't* 
happening at Borders and B&N?  The books on display on the ends of 
shelves and other highly visible places are almost all there because a 
publisher paid to have them there.  The publisher's aren't yet shelving 
the books, but evidentally they are now supposed to be deciding which 
books to shelve.   We don't yet have products shelved by publisher 
rather than topic, but it sounds like we are heading that way.


#33 of 52 by scott on Mon Jun 10 02:03:51 2002:

The A2 Borders currently has a big carboard "Harry Potter" castle, loaded with
many copies of the DVD.  Draw your own conclusions.


#34 of 52 by twinkie on Mon Jun 10 03:16:19 2002:

re: 32 -- I can attest to their very rigorous pre-employment exam. I applied
at the Novi store shortly after it opened (1994?) and found the test
overwhelming, to say the least. All of this in spite of the fact that I was
an AP English student, and was applying for a position in the Music
department. (Unfortunately, they didn't have a separate exam for that)

It's pretty obvious their standards have changed. Despite what some may think,
the Novi Border's was every bit as good as the Ann Arbor store (I spent
considerable time at both). In the last year, or so, I've found that when I've
had to ask for help, the employees tend to lead me to one of the Title Sleuth
kiosks, and perform the same boolean search I performed before asking them.

I would imagine that the lack of good help has a lot more to do with what
Border's considers to be a decent wage. When I applied there, I was too new
to the workforce to realize that $0.75 over minimum wage was hardly
impressive. Even now, they're only paying about $7.50 an hour in their Novi
store. This may be perfectly reasonable in Ann Arbor, where there are more
students than jobs, but I can't fathom why an educated person would take $7.50
in Novi or Farmington Hills when there are retail jobs paying $9 or more
within a few hundred feet.



#35 of 52 by russ on Mon Jun 10 11:49:03 2002:

Re #15:  Nicola's is okay, but my favorite Little Professor is actually
the one in Dearborn (though I seldom get there these days).


#36 of 52 by gelinas on Mon Jun 10 12:50:32 2002:

(She has, I think, severed her relationship with Little Professor.  She has
at least given notice that the contract will not be renewed.  There was an
argument about the name of the store some few years back.)


#37 of 52 by slynne on Mon Jun 10 15:27:01 2002:

Honestly, I think wage has a lot to do with the decline of Borders. How 
are they supposed to attract very educated staff when those people have 
no problem finding jobs that pay better elsewhere? They could raise the 
wage but then they would also have to raise the price of the books. I 
dont know if that would be a good move because there is really strong 
evidence that suggests that most customers prefer lower price and arent 
really willing to pay extra for service. 

You see, from what I understand, working for a small and very well 
respected independant bookstore can be kind of fun. So much so that one 
can get away with low wages. But working for a giant corporation 
usually isnt quite as fun. Large firms of layers and layers of 
management which increases the changes that really stupid employee 
policies will be implimented. I am not going to go into great detail 
but I know for a fact that the employees in a Borders store now are 
treated very differently than the employees were treated in the 
original Borders store. 





#38 of 52 by twinkie on Mon Jun 10 15:49:35 2002:

I think it's difficult to find balance in large-scale retail, because most
people are driven by price, rather than service. 

I consider myself to be a reasonably competent person. At least, competent
enough to walk over to a kiosk and type in the name of the book, or author
I'm looking for. As long as the information in the kiosk is correct in regards
to where the item I want is located and whether it is in stock, I don't really
need assistance. As a consumer, it doesn't matter to me whether the person
behind the counter is able to tell me precisely where I can find a hardcover
edition of The Definitive Nietzche, if I don't need to ask. It's worth the
money I've saved, even when I'm unable to get the help I want in the 1-in-50
chance I have to ask someone.

I could see how it would be useful for a more specialized indie store to hire
more educated employees, and offset the more expensive wages by charging more
for books. Antique and rare books come to mind...where you'd want someone who
knew just what you were talking about, and who would be able to get it for
you. I'm sure most people wouldn't have second thoughts about paying a premium
for that level of service. 



#39 of 52 by flem on Mon Jun 10 18:35:53 2002:

I live quite near the Nicola's in Westgate, so I would love to be able to call
it my favorite bookstore.  But, as Jan said, the Sci-fi/Fantasy section is
second-rate, and, what's worse as far as I'm concerned, the hours are too
short.  I'd run out of fingers before finishing counting the number of times
in the last six months that I've gone there at what I considered a perfectly
reasonable time, and found that they were closed.  Borders may be going
downhill, but I can't off the top of my head think of a bookstore that serves
my needs better.  


Last 13 Responses and Response Form.
No Next Item No Next Conference Can't Favor Can't Forget Item List Conference Home Entrance    Help

- Backtalk version 1.3.30 - Copyright 1996-2006, Jan Wolter and Steve Weiss