Independent bookstores in the Bay Area are expressing concern over Barnes & Noble’s recent acquisition of Books Inc., the West Coast’s oldest independent bookstore chain. While the move preserves stores from closure, it raises fears that the national chain, owned by a hedge fund, could leverage its financial power to undermine local businesses by operating under familiar indie names.
Key takeaways
- Barnes & Noble has acquired the nine-store Books Inc. chain, significantly expanding its presence in San Francisco and the wider Bay Area.
- Independent booksellers worry that Barnes & Noble’s strategy of acquiring and operating stores under their original names blurs the lines for consumers, potentially diverting support from genuine local businesses.
- Despite a recent resurgence in independent bookstore sales, the financial might of Barnes & Noble poses a new challenge, impacting negotiations for rent and publisher prices.
A changing landscape
Barnes & Noble CEO James Daunt stated his intention to purchase Books Inc. was to prevent its closure, a move that has added nine stores to the chain’s portfolio in the Bay Area. This acquisition marks Barnes & Noble’s return to San Francisco after a decade, with new locations in prominent neighbourhoods and the airport. The chain is also rapidly expanding nationwide, opening dozens of new stores annually.
Concerns over brand mimicry
Critics argue that Barnes & Noble’s approach of retaining the original branding and ‘indie vibe’ of acquired stores is disingenuous. Hannah Walcher, executive director of the California Independent Booksellers Alliance, noted that this tactic can mislead less informed customers into believing they are supporting a local, independent business when they are actually patronising a national chain. This strategy allows Barnes & Noble to benefit from the goodwill and community connection that independent bookstores have cultivated, while simultaneously wielding the significant financial resources of its parent company, Elliot Management.
Resilience and new challenges
The Bay Area’s independent bookselling scene has shown remarkable resilience, with new stores opening and sales increasing post-pandemic. Katerina Argyres, co-owner of Noe Valley Books, highlighted the community’s renewed appreciation for local shops during COVID-19. However, the expansion of Barnes & Noble presents a formidable new challenge. Vanessa Martini of Green Apple Books pointed out that the chain’s size grants it greater leverage in lease negotiations and with publishers. She also observed that new Barnes & Noble stores are adopting the smaller, curated, and literary-focused model that has proven successful for independent booksellers, even incorporating elements like ‘shelf talkers’ – handwritten staff recommendations.
The power of the consumer dollar
While Amazon remains a primary concern for independent booksellers, the influence of James Daunt, who also heads Waterstones and Daunt Books, is now a significant factor. Daunt maintains that his acquisitions are solely to save struggling bookstores and that he aims to preserve their existing character and staff. However, Bay Area booksellers remain wary, urging consumers to be mindful of where their money is spent. Martini emphasised the importance of supporting genuine independent bookstores like Green Apple, Noe Valley Books, and City Lights, especially as the crucial holiday season approaches.
Sources
- Bay Area booksellers fear losing business as chains buy indie stores, San Francisco Chronicle.
