Booked out: Intense competition and shifting consumer trends are driving down revenue

Bookshops have struggled in recent years, with revenue in the Book Stores industry expected to decline at an annualised 10.2% over the five years through 2016-17. Numerous factors have affected the industry, including lower book prices, competition from online and external operators, and a shift in consumer reading habits from print books to e-books. The operating landscape has also been influenced by trends in real household discretionary income, consumer sentiment, the IT and telecommunications adoption rate, and demand for online shopping. Industry revenue is expected to decline by 5.5% in 2016-17, to total $1.5 billion, due in part to negative consumer sentiment.Retail trade has been lacklustre over the past five years...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-10.2%
Forecast Growth 17-22
Profit
Employment
11,100
Businesses
2,195

Industry Threats & Opportunities

  • Poor print book sales have contributed to weak industry profit margins
  • Competition from online operators will threaten the viability of bricks-and-mortar stores
  • Industry Report - Industry Products Chapter

    The Book Stores industry may be segmented by the category of book being purchased (trade or educational and professional) or the type of book (hard copy or digital). Trade books represent those published for general readers, while educational or professional books are for specific consumers. The product market for book retailers has evolved considerably over the past five years. As a result, the type of book purchased provides a clear representation of the shift in consumer book buying habits over the period. While still less than demand for print books, the growing demand for e-books and e-readers has changed the way customers buy and consume books.BooksPrint books dominate the industry and are expected to account for 60.0% of revenue in 2016-17. How...purchase to read more.

    Additional Insights for the Book Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Book Stores Industry are

  • Ability to control stock on hand
  • Attractive product presentation
  • Close monitoring of competition
  • IBISWorld analysts also discuss how external factors such as IT and telecommunications adoption and Real household discretionary income in the Book Stores industry impact industry performance..

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    What's in this report

    What is the Book Stores Industry?

    Companies in the industry primarily retail books. These companies may also retail audio books, e-books and e-readers. Online-only booksellers are excluded from the industry.

    Industry Products
  • Books
  • Other goods
  • e-books and e-readers
  • Industry Activities
  • Audio book retailing
  • Book retailing
  • e-book retailing
  • e-reader retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • IT and telecommunications adoption
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from online shopping

  • Current Performance
  • Performance drivers
  • Profit and store numbers
  • Chart: Revenue Growth

  • Industry Outlook
  • Operating landscape
  • Profit and store numbers
  • Table: Book Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Book Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Education and Training
  • Consumers

  • Key Selling Industries
  • Book and Magazine Wholesaling
  • Book Publishing

  • Products & Services
  • Books
  • e-books and e-readers
  • Other goods
  • Chart: Book Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 55 and over
  • People aged 15 to 34
  • Educational organisations and business users
  • Chart: Major Market Segmentation for the Book Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Book Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Book Stores Industry

  • Industry Globalization
    University Co-operative Bookshop Limited, Dymocks Pty Ltd,
  • Table: University Co-operative Bookshop Limited - financial performance
  • Table: Dymocks Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Book Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Book Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    E-Book
  • A book in digital or electronic format, which may be read using an e-reader, tablet, smartphone or computer.
  • E-Reader
  • A portable tablet device that allows consumers to download and read digital publications such as e-books.
  • Parallel Import Restrictions
  • Legislation preventing bookstores from importing commercial volumes of a book if a local publisher can supply it within 14 days of its release overseas.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Book Stores market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Book Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Book Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Book Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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