The BA Group Annual Review The Booksellers Association of the United Kingdom & Ireland Limited Minster House, 272 Vauxhall Bridge Road, London, SW1V 1BA Telephone: 020 7802 0802 Fax: 020 7802 0803 Email: mail@booksellers.org.uk Website: www.booksellers.org.uk Booksellers Association Group Board of Directors President Graham Rand Officers Sharon Murray – Blackwell’s Jane Streeter – The Bookcase, Lowdham Chief Executive Tim Godfray Chairman of Book Tokens Limited Willie Anderson – John Smith’s Group Chairman of batch.co.uk Philip Wicks – Yorkshire Books Managing Director of Book Tokens Ltd Stuart Mathews Managing Director of batch.co.uk Fraser Tanner Finance Director Tim Trigg Booksellers Association Advisory Council President Graham Rand Officers Sharon Murray – Blackwell’s Jane Streeter – The Bookcase, Lowdham Chief Executive Tim Godfray Elected to serve until 2011 Jacqui Gadd – Marylebone Books Ron Johns – Mabecron Books, Plymouth John McNamee – Eason, Portlaoise Patrick Neale – Jaffé & Neale Bookshop and Café, Chipping Norton Lynne O’Neill – John Smith’s Group Trevor Proctor – Eason & Son (NI) Limited Elected to serve until 2010 David Cooke – Tesco Stores Limited Peter Donaldson – Red Lion Books, Colchester Gerry Johnson – Waterstone’s Sheryl Shurville – Chorleywood Bookshop Elected to serve until 2009 Philip Downer – Borders (UK) Ltd Christine Hanson – Bookmark, Spalding Rachel Russell – WH Smith Tim Godfray BA CEO Graham Rand BA President Graham Rand is in his final year as BA President and has covered an eventful term. Graham is a passionate supporter of the BA and is determined to ensure that the BA continues to deliver the widest and best value range of services for its members. Dear Member Details of the BA's work during 2008 can be found within this Annual Report. The only thing that economists can agree on is that this recession is, and will continue to be, different from previous ones. So far, the book trade seems to be weathering the storm reasonably well. Total book sales in 2008 were down just 0.2% and 2007 was a Harry Potter year. This bald statement hides the fact that sales were well up in the first six months but down during the second, so the more recent trend is not so good. Further challenges to a difficult Christmas trading period were felt by some members due to the demise of the Woolworths Group. Supermarkets had to find alternative supply arrangements when EUK stopped trading, and bookshops were unable to enjoy the normal Bertram’s service as their supply arrangements were affected by the uncertainty about their future, now happily resolved. Are books likely to continue to buck wider retail trends? There is certainly anecdotal evidence that people are going out less and spending more time at home, and that they are looking for better value ways to spend their money. It is also true that, generally, creative industries are doing better than other trades. It may be a myth that books stand up well in tough times but it might be true that in this recession books will do less badly than other industries. The BA has two principle roles to fulfil in this economic climate. It must seek to help members in these difficult times by providing valuable services that reduce the costs of running a business, and secondly it must work with the whole book industry in promoting the sale of books. The introduction of www.batchconnect.com and the streamlining of the software behind batch payments are good examples of the first, along with the development of the Independent Booksellers Forum (IBF). The support for World Book Day, Independent Booksellers Week, Electronic Book Tokens and the BA/PA Forum trade marketing campaign to promote books are good examples of the latter. There are many more examples in both camps and they are detailed in this report. We are in the midst of an information revolution as the digitisation of content moves into the consumer market. Waterstone's was highly successful in selling the Sony Reader at Christmas, but there are many other developments happening now, not least the Google US settlement and the implications that this will have on the UK market. The BA is doing everything it can to help ensure that booksellers develop alongside these opportunities and not be locked out from them. These are difficult times and the BA is committed to help in each and every way we can. Good luck for 2009. Graham Rand President The Booksellers Association Promoting Books and Increasing Contents Promoting Books and Increasing Sales..... 4 The Book Industry Conference...................8 Working with Booksellers..........................9 Book Market Research.............................14 Partnerships.............................................15 Legislation & Representation...................16 Products and Services..............................18 E-Commerce and EDI...............................20 Bookselling in the Digital Age..................22 The Environment......................................23 Index Academic, Professional & Specialist Booksellers Group (APSBG) .............................9 BA Affinity Deals .............................................19 BA Forums for Specialist Booksellers .............9 BA Loss Prevention Consortium .....................17 batch ...............................................................20 batchconnect.....................................................6 BIC e4books ....................................................21 BIC – IRI Policy Group .....................................22 Book Industry Communication (BIC) ..............20 Book Industry Conference ................................8 Bookselling Essentials ...................................19 Bookselling: International Market Comparisons – A Benchmark Study of Profitability .................................................14 bookstart...........................................................6 Business Support Helpline .............................18 Children’s Bookselling Group...........................9 Christian Booksellers Group...........................10 Christmas Books...............................................7 Costa Book Awards ...........................................6 Digitisation......................................................22 Directory of Members .....................................19 Directory of UK & Irish Book Publishers ........18 Environmental Action Group...........................23 European Booksellers Federation ..................18 Firm Sale on Backlist......................................16 Gerry Davies 2008 Award..................................8 Google .............................................................22 Independent Booksellers Forum ....................12 Independent Booksellers Week......................12 Introduction to Bookselling Course ................19 Legislation ......................................................16 National Book Tokens .......................................4 National Year of Reading ..................................6 New Bookseller of the Year Award .................15 Open University Set Books Scheme................15 School Suppliers Group ..................................11 Starting & Running a Bookshop......................19 The London Book Fair.....................................15 VAT and books.................................................17 World Book Day ................................................5 4 National Book Tokens National Book Tokens (NBTs) are a unique book trade asset. One of the UK and Ireland’s leading multi-retailer voucher schemes, they are sold and exchanged in thousands of bookshops with a retail sales value of £29 million. They are chosen as a gift by two million consumers every year. A vital part of the product mix of all good booksellers and a key benefit of Bookseller Association membership, they deliver both profitable sales and footfall. Sales Trading in 2008 was tough, with consumer confidence at a low for much of the year and recessionary forces impacting on the book trade. Online bookselling continues to attract a growing share of consumer spend and discounting remains a key driver. In addition, a number of book retailers launched own-brand gift cards, merchandising them attractively and competing harder than ever with the NBT voucher. Sales of National Book Tokens in the financial year ending 31 October fell by 7%. Electronic Gift Cards Electronic Gift Cards (EGCs) are the modern version of the traditional paper voucher. Looking just like a debit card, an EGC has higher perceived value than a paper voucher, can be topped-up by consumers and also used online. Over the past few years, Electronic Gift Cards have become the high street norm, delivering increased sales. The NBT EGC is designed to ensure that National Book Tokens remains a relevant consumer brand that continues to deliver profitable sales to UK and Irish Booksellers. The NBT EGC has been designed to ensure that, just like the traditional NBT voucher, it can be sold and exchanged in every bookshop in the UK and Ireland. Significant funds have been invested by Book Tokens Limited to provide the IT infrastructure to ensure that all booksellers can take part in the new scheme, integrating with large EPOS systems, working with third parties and delivering a system that provides access for even the smallest BA member. Hundreds of booksellers have been contacted and views fed back to ensure that the new product is as customerfriendly as possible. The UK NBT EGC launches in 2009. The Irish NBT EGC is likely to launch in 2010. National Book Tokens Marketing Each year, National Book Tokens delivers high-profile marketing both in support of the NBT brand and in support of books and the book trade. In 2008 NBT marketing included: A strong UK press and online advertising campaign (from late November through Christmas) targeting female heavy book readers. This was supported by sponsorship of the Classic FM book review. Sales In Ireland, a promotional campaign on RTE Radio 1 in the run-up to Christmas. Sponsorship of World Book Day and its new initiatives, Spread the Word and Quick Reads. Sponsorship of the Irish Book Awards for the second time and continued support of the Galaxy British Book Awards. Direct mail and online campaigns targeting schools and parents for prize-giving and back to college. Book-related events and activities such as the Edinburgh International Book Festival and the Guardian Young Writers Award. The introduction of new and attractive PoS and card ranges to support the brand in store. World Book Day 1 World Book Day is the UK and Ireland’s annual celebration of books and reading. 3 The aims of World Book Day are to encourage children to a lifetime of reading; to celebrate reading; to gain media coverage for World Book Day and the book trade; and to increase footfall in bookshops. Key points National Book Tokens remains the main sponsor of World Book Day, paying for the production and distribution of over 14 million £1 (and €1.50) tokens to schoolchildren throughout the UK and Ireland. For today’s schoolchildren, World Book Day has become an annual fixture in the school calendar. 2 In 2008, Spread the Word was launched as a major consumer campaign aimed at heavy book buyers. The aim of the campaign was to unearth hidden gems – or Books to Talk About – of recently published fiction. The public vote chose Boy A (Serpent’s Tail) by Jonathan Trigell as the winning Book to Talk About. 4 1. National Book Tokens advertising campaign 2. National Book Tokens dispenser World Book Day continues to support Quick Reads, a major publishing initiative designed to help introduce emergent readers to books and to encourage confidence in reading. 3. National Book Tokens Electronic Gift Card The World Book Day Chair for 2008 was Philippa Dickinson of Random House Children’s Books. Vice-Chair Neil Jewsbury of Waterstone’s succeeded her in 2009. 4. World Book Day ‘Spread the Word’ campaign 2008 5. World Book Day illustrations 2008 © Emily Gravett 5 5 Promoting Books and Increasing Sales The five category winners were: batchconnect batchconnect is a new web-based service designed to connect booksellers, publishers and authors. It is completely free to BA members. Biography – Somewhere Towards the End (Granta) by Diana Athill. Novel – The Secret Scripture (Faber) by Sebastian Barry. First Novel – The Outcast (Chatto) by Sadie Jones. Poetry – The Broken Word (Cape) by Adam Foulds. Children’s – Just Henry (Egmont) by Michelle Magorian. The Costa Book of the Year was The Secret Scripture. Booksellers can use it to manage preferences in order to obtain the promotions they want; receive email alerts only about the types of promotions they wish to see; order books; search for authors who have registered to promote their books; set up author events. Key points bookstart It enables publishers to promote books to booksellers and to organise author events. bookstart promotes books and reading to parents/carers of babies and toddlers across the UK. A publisher decides which book, or books, they want to promote: They type in the ISBN and all key bibliographical details will appear on screen from the Nielsen Book database. They add a marketing message and an offer to booksellers, plus any supporting material they would like booksellers to receive. The message then goes to those booksellers who have indicated a wish to receive information about that particular book. It helps to promote authors and books to booksellers nationwide: Authors and publishers can see which bookshops have run successful author events. They can see which bookshops are planning forthcoming events and festivals. They can arrange bookshop visits and events. See www.batchconnect.com for more information. Costa Book Awards The Costa Book Awards are among the most high-profile UK book prizes and they are unique in that they recognise books from different genres – Biography, Novel, First Novel, Poetry and Children’s – and so reflect the range and diversity of bookshops’ stock-holding. Booksellers are involved in the judging process. The Costa Awards celebrate the best books of the year and create a media opportunity for the book trade. The BA has for many years successfully administered these Awards and continues to do so. 6 Bookseller judges for the 2008 awards included Chris Rushby of Bertrams THE, John Newman of the Newham Bookshop, Dan Fenton of John Sandoe and Peter Saxton of Waterstone’s. Key points Free bookstart packs for babies, toddlers and threeyear-olds are given to parents or carers at regular health-check appointments. A £1 bookstart/National Book Token is included in the bookstart+ for toddlers pack and My bookstart Treasure Chest for three-year olds. These can be exchanged at participating bookshops. Almost 1,200 BA member outlets participate in the bookstart scheme. Parents/carers can find their nearest bookstart supporter on the BA website. bookstart distributes over 1,300,000 books a year to 670,000 children. More information can be found at www.bookstart.co.uk The National Year of Reading The National Year of Reading (NYR) was a governmentbacked, year-long celebration of reading, in all its forms. It aimed to encourage people to read in businesses, homes, and communities around the country, providing new opportunities to read. The NYR also helped people access support through schools and libraries. The initiative was managed by a consortium of organisations committed to the promotion of reading, led by the National Literacy Trust and The Reading Agency on behalf of the government's Department of Children, Schools and Families (DCSF). The aim was to increase awareness of the many values of reading – anything, anytime, anywhere – for children, families and adult learners alike. 1. Christmas Books 2008 Key points The NYR project team put together an excellent website, www.yearofreading.org.uk, which offered ideas to promote reading, events news, competitions, and support to libraries and bookshops. 2. National bookstart Day 2008 3. Sebastian Barry, winner of the 2008 Costa Book Award The BA was represented on the book trade’s NYR Advisory Working Group and it informed members of the NYR monthly themes and activities from April through December 2008, in order that booksellers had the opportunity to adopt those themes into their own promotional initiatives. The BA promoted the NYR logo on its own printed material. The BA encouraged all its members to include the NYR logo within their own PoS and other promotional material. Members were encouraged by the BA to post details of any appropriate events they were organizing on the NYR website. 1 Christmas Books Christmas Books is the leading marketing tool for independent booksellers at Christmas. Produced for the Independent Booksellers Forum by the Booksellers Association with Publishing News Limited, Christmas Books is designed to raise the profile of independent booksellers with local consumers and to increase footfall and sales in their bookshops. Key points Christmas Books remains the market leader among Christmas catalogues with the highest design and production values. The 2008 cover was designed to give maximum prominence to each individual bookseller’s details. Titles in Christmas Books are selected by a panel of independent booksellers. 2 The aim of the selection is to feature a range of titles appropriate for independent booksellers and their customers beyond the obvious – and much-discounted – bestsellers but still featuring some major titles. The BA provides a comprehensive support package for booksellers taking Christmas Books, including free PoS; subsidised door-to-door distribution; subsidised local newspaper advertising and professionally designed artwork; customisation as standard at no additional cost. The 2008 catalogue included an introduction from P D James. Christmas Books is the only Christmas catalogue to feature backlist titles, with prominence given to the Adult and Children’s shortlists for the Independent Booksellers Forum Book Prize. 3 7 The Book Industry Conference 1 The Book Industry Conference The BA hosts the Annual Book Industry Conference for the entire UK Book Trade. It brings booksellers, publishers and other book trade organisations together to look at the book trade holistically; to consider recent, current and future trends; to hear from key trade and non-trade speakers; and, of course, to network. The Book Industry Conference 2008 took place at the Grand Hotel in Brighton. Heavyweight industry and non-trade speakers addressed delegates. Consumer Trends Book Marketing Ltd presented current book market data. Henley Headlight Vision presented cutting-edge research and looked ahead to what the future might bring for both the consumer and the trade. Reaching Consumers and their Communities Ian Hudson, Deputy CEO of Random House and PA President, urged delegates to embrace the challenge of digitisation. Genevieve Shore, Head of Global Digital at Penguin, and Meg Pickard, Head of Communities for Guardian Online, echoed Hudson with their examples of how digital technology can transform and enhance community and interaction. 2 1. The Book Industry Conference held in Brighton, May 2008 2. Willie Anderson, winner of the Gerry Davies Award Re-modelling/Re-invention: Speakers Mark Harrison of the BBC and Andrew Marsden, former Britvic Marketing Director, offered insights into how other sectors have capitalised on existing product. Jeweller Gerald Ratner gave a unique, entertaining and uplifting presentation on how he reinvented himself. The importance of the three-way relationship between libraries, booksellers and publishers was addressed by Amanda Ridout, Harper Collins MD, Karen Cunningham, Head of Libraries in Glasgow, and author Tracy Chevalier. Greening, and Growing, the Trade Trade perspectives from Gerry Johnson, MD of Waterstone’s, and Ashley Lodge, Head of CRM for HarperCollins, followed a macro vision from author and former Chief Scientific Advisor to the Government, Sir David King. The Next Big Thing? Booksellers and publishers put forward ideas for the trade’s Next Big Campaign. Those pitching included Emma Barnes, founder and MD of Snowbooks, with her proposal for “bookbackers”, Keiron Smith, founder of BookRabbitt.com, Mark Rusher, Orion Group Marketing Director, and David Kohn, Commercial Director Borders UK, who suggested “Book Relief”. Authors appearing at the Conference included Rory McGrath, Gavin Esler, Sir Michael Parkinson, Denis Norden, Adèle Parks. 8 Gerry Davies 2008 Award Given annually at the Book Industry Conference, the Gerry Davies Award recognises an individual who, in the opinion of the BA Council, has given outstanding service to the book trade. Key points The 2008 Award went to Willie Anderson of John Smith & Son Group, a passionate bookman, who has given a huge amount back to the trade over the years. Willie Anderson was President of the Booksellers Association when the Net Book Agreement fell in 1995 and he did a magnificent job of guiding the membership through a period of great change. He was also the first ever bookseller Chairman of World Book Day. He is currently Chairman of Book Tokens Limited at a time when the BA is developing its biggest ever project, the introduction of the new Electronic Gift Card. Gerry Davies, Director of the Booksellers Association until 1984, died five years ago. In his memory, the BA Council decided to award a trophy each year in recognition of the contribution by an individual to the book trade. Working with Booksellers The Group’s Annual Conference, a significant and established event for booksellers, publishers and others in the academic world, moved to a new venue near Grantham in March 2008. BA Forums for Specialist Booksellers The BA’s specialist groups represent the interests of those selling within each sector, particularly in their relations with publishers, suppliers and other key organizations. Key addresses were delivered by Vince Gunn, CEO Blackwell UK, Maarten Asscher, Athenaeum Booksellers, Amsterdam, and Oliver Gadsby, CEO Continuum Publishing Group. They also act as sounding boards and knowledge centres for both booksellers and the wider trade. Academic, Professional & Specialist Booksellers Group (APSBG) David Prescott, Blackwell, Group Chair “ Although not immune to events on the high street, the Academic, Professional and Specialist Booksellers Group reported sales in the autumn period which were above expectations. Sales of core texts were solid, if unspectacular, with the expansion of custom-published titles taking an increasing market share. Book sales have been supported by the continued diversification of non-book ranges, with university apparel, own-brand stationery and food lines underpinning sales growth. The Group noted a marked improvement in title availability, and fewer distribution problems than in previous Back to University campaigns, delivering the benefits of the more collaborative approach between booksellers and publishers that the BA APSBG has fostered in recent years. ” Parental prepayment of money for students to buy books has been a success where a system was established. Publishers’ over-reaction to the general economic situation was a downside to the autumn and led to tight credit control – unnecessary given the long-established relationships with their bookseller customers. Custom publishing continued to grow, with Pearson dominating the market. The Group met Pearson in February to address concerns for autumn 2008. The Group supported the BA in its November 2008 statement of concern at Google’s plans to become an online bookseller in the US. The Group was relieved that Hachette Livre and Penguin did not attempt to impose restrictions such as firm sale on backlist titles. Each autumn, Colin Marshall (Leicester University Bookshop) collects, collates and distributes to members hotline information from publishers and distributors; the spring hotline has been discontinued as it is no longer necessary. Using feedback about service during the autumn, Colin Marshall runs the Academic Distributor of the Year Award, which was won for the fourth year running by Oxford University Press. For the third year running, OUP also won the Academic Publisher of the Year Award, coordinated and presented by David Prescott (Blackwell). Tim Mahar of Hodder Education, with the help of BML, presented the Academic Bookseller of the Year Award, won for the third year running by Blackwell, Broad Street. Children’s Bookselling Group John Newman, Newham Bookshop, Group Chair “ These are challenging times and we are suffering the consequences of some short sighted decision-making. Try telling booksellers whose supply chain has been disrupted amid the Christmas rush that merging two wholesalers was the right and sensible thing to do. The introduction of age banding on books caused a furore, but it has had no impact on what we sell or who we sell it to. I believe we’ve sold some lovely books this year – books made saleable by the quality of the writing, illustration, design and production and owing nothing to any numbers on the back cover. Isn’t that what we should be celebrating and cherishing? Instead, we have endured a protracted debate which remains unresolved and there’s still no clear indication of how the exercise can and will be evaluated. As a reader and a book-lover I am dismayed at the bad economics which continues to undermine and devalue books through reckless discounting and an unhealthy belief that only those books that sell quickly and in sufficient quantity should remain in print. I want to celebrate the work that has gone into the National Year of Reading, which has seen a huge increase in library users. What a pity, then, that this comes at a time when libraries are under-funded and at risk as never before. Meanwhile colleagues continue to find ever more creative ways to sell books through an ever widening pool of community partners in schools, children’s centres, theatres and libraries. I know they remain passionate about helping to create and sustain readers and in so doing to sell more books in 2009 – economic circumstances and the whims of the trade allowing. ” Hand-selling the right books to the right person is the vocation of children’s booksellers. Advice to parents, teachers and children themselves are key in this. The market was steady throughout the year; there was no spectacular growth. There was controversy over age guidance, the phrase “age ranging” soon being abandoned. Chain and supermarket booksellers, together with some journalists, were in favour of printing age suitability guidance on children’s fiction, but many authors, librarians and specialist children’s booksellers opposed the move. Several prominent children’s publishers decided to label children’s fiction from autumn 2008 onwards. Only a sales increase will prove whether it was the right decision. 9 Working with Booksellers 1 2 1. The Guardian Children’s Book Supplement, April 2008 2. Cover to Cover, Christian Reference Book of the Year 2008 The Children’s Bookselling Group continues to meet with publishers and other interested parties. The Group’s now annual Children’s Book Seminar, held in May, provided an opportunity for booksellers to meet publishers and authors. Under the chairmanship of Julia Eccleshare, publisher Jane Nissen, author Anne Fine and illustrator Martin Salisbury discussed the topic of “What makes a children’s classic? Is what sells what survives?” Following a number of autumn publications, Group members appreciated “the best ever” Guardian Children’s Book Supplement, published with the paper on Saturday 5 April. In a new initiative, this one was given free to booksellers, with Book Tokens sponsoring distribution and the extra costs incurred by a reprint when orders outstripped supply. World Book Day, 6 March, was the focus for raising the profile of books to children and schools with the help of the £1-off book token which prompted increased sales. Christian Booksellers Group Mark Clifford, Sarum Books, Salisbury, Group Chair “ 2008, like 2007, was a difficult year for the religious book trade, and bricks-and-mortar shops struggled to cope with the economic downturn and the trends towards e-commerce. However, as in other trading sectors, there are fresh opportunities for Christian bookshops which forge a place at the heart of their local church communities, offering specialist knowledge, a quick response to customers and a lively meeting-place where staff can build strong relationships with their customer base. Further encouragement has come from developing co-operation with the Christian Suppliers Group. The challenge to greater professionalism remains a must for us all. ” Trade was tough, and booksellers had to run just to stand still. Costs rose, and only so much can be done to contain them. October brought the challenge of changes to STL Distribution’s system, which caused severe problems for which STL has apologised. Outside events and conferences bring rewards, though not without hard work, while sales of gifts, cards and fair trade goods provide ballast. 10 Internet sales are there for those able to offer them. The Group believes booksellers should embrace the web while at the same time offering the personal service only a local bookshop can offer. The Group is discussing the possibility of members taking part in a bench-marking exercise to compare their business figures with those from similar shops. Christian Marketplace magazine continues to offer the Group a page of editorial every month. Subjects have included managing stock, loyalty schemes, green issues and preparing for Lent. More than 30 members attended the Music Training day held in January at the BA’s London office. The aim is for more such days. Committee members have individual responsibilities, among them: David Landricombe of the Christian Literature Centre, Plymouth, reports on forthcoming music and multimedia. Phil Groom of the London School of Theology Books & Resources reports on internet developments and on the progress of the Christian Bookshops Directory website he has set up for the trade. His new trade blog is christianbookshopsblog.org.uk Joy Dean (Soham Books) and Melanie Tucker (Church House Bookshop, Westminster) alert members to new gift, card and stationery suppliers. The Group keeps in touch with suppliers through the Christian Suppliers Group. The Group has long had close connections with the Christian Booksellers Convention. At the Telford event in March 2008, it organized the training day which included sessions on increasing footfall, customer service, display and on using the media to get the message across. The Committee is also active in the process of assembling both the long and the shortlist, and in the final voting for the CBC Book and Album Awards. Nominations are open to the entire Christian bookselling trade. 2008 Book Award Winners were: Children’s Book of the Year: Big Bible Story by Maggie Barfield (Scripture Union). Reference Book of the Year: Cover to Cover Complete by Selwyn Hughes and Trevor J Partridge (CWR). Book of the Year: The Dawkins Delusion? by Alister McGrath and Joanna Collicutt McGrath (SPCK). Trade in 2008 was steady but not outstanding. Changes in AS level curricula went well enough, but those in Key Stage 3 made little impression. School Suppliers Group Richard Heath, Heath Educational Book Supplies, Group Chair “ 2008 has been a rather traumatic one for many parts of the book trade, and a time for the school suppliers amongst us to face varying sorts of increasing competition. Most school suppliers are also booksellers and few, therefore, will have been unaffected by the trials and tribulations of the high street. In these times, school supply provides a certain amount of stability but also brings concern about the changes on the supply side of the fence. Whilst our customers remain largely the same, we have seen this year not only the integration of Heinemann and Longman gathering pace but big changes in wholesale, and in the influence of the internet. The demise of THE and the transfer of their business to Bertrams did not please school suppliers in general and the alarming growth of Gardners with their ownership of Books for Students, Holt Jackson and Askews means that they have financial clout that makes even the largest of school suppliers nervous of their ability to compete. In addition, the lopsided nature of internet pricing is putting pressure on the very slim margins on which we operate – being squeezed for silly prices or simply losing the business to online operators distorts the economics of school supply. My fear is that school suppliers are responding by trying to buy their customers with excessive discounting. It will end in tears. But we should be positive – we have largely loyal customers who appreciate our hard work, knowledge and expertise in providing a specialist market with a special service. Let’s hope that the schools continue to receive budgets that allow them to resource themselves adequately with the thing that remains ITresistant and key to all their teaching – the book. ” Has secondary school business been holding its breath ready for the changes in all GCSE curricula (except maths and science) in 2009? It may be that publishers, anxious to get their own titles adopted, will be keen to supply direct, leaving booksellers to wait until later for a slice of the action. The market was increasingly polarized by the three English examining boards increasingly endorsing, sometimes exclusively, the textbooks of a particular publisher for specific courses. Technology has been slow to come to the educational trade but times are now changing. The all-important matter of bibliographic information is a constant concern. Nielsen BookData has improved somewhat this year, but is still not completely reliable on price changes, especially around 1 January. PubEasy’s information, especially regarding availability, and wholesalers’ databases, proved reliable. Cambridge University Press hosted the Group’s April Annual General Meeting. Pearson UK Schools and Colleges hosted its November meeting at Penguin Books’ London HQ and gave members an update on the imminent integration of the Pearson and Harcourt/ Heinemann operations, offering Group members customer support for the future. The Group liaised with the Government’s Department for Children, Schools and Families (DCSF), which announced at the beginning of 2008 that its Educational Procurement Centre was developing OPEN, an eprocurement solution for schools. This was intended to provide schools with an electronic marketplace, making purchases quicker and cheaper by offering price comparisons and an electronic ordering system. Discussions with the DCSF made it clear there was no question of local education authorities or schools being forced to use the site. The DCSF acknowledged the Group’s point that price comparisons for books and resources are less appropriate than for pencils because buying decisions are dictated by the need to deliver on the curriculum. Thus, price is far from the only consideration. 11 Working with Booksellers Independent Booksellers Forum Independent Booksellers Week The IBF – (originally named the Small Business Forum) is run by and for booksellers. A celebration of independent bookshops that provides a framework to promote independent bookshops locally and nationally. It exists to provide events and resources to enable independent booksellers to learn from each other and from other industry experts, with a view to improving business efficiency, exchanging best practice and sharing experience and ideas. Its primary purpose is to create a nourishing peer group in the independent sector. Key points The IBF held a series of events in 2008: SBF Conference – Innovation and Inspiration, Warwick University (September). The biggest IBF with more than 120 delegates. Speakers, including US bookseller Joel Sheldon, Colin Telford of the Hayling Island Bookshop, and Andrew Cant and Sue Steel of Simply Books, addressed topical issues for booksellers. The combination of a trade show, sponsored by Gardners, and a dinner, sponsored by HarperCollins and featuring five of their authors, made for a successful and inspiring event. Online and Active, Birmingham (June) – launching, developing, maintaining and maximising a website. Speakers: Mark Thornton, Mostly Books, Abingdon; Emma Barnes, Snowbooks; Linda Bennett, Goldleaf; Chris Conway, TBP; Paul Williams, Lightning Source; Sridhar Gowda, countrybookshop.co.uk. SBF@BA Conference, Brighton (May): Unlocking Your Business Potential – Assessing Your Business Objectively and Making a Difference. The speakers were Jo Howard, management consultant, Matthew Clark of the Torbay Bookshop, and Douglas Schatz, Managing Director of Stanfords. London Book Fair Seminars (April): Marketing Your Bookshop Online; Love Your Local Bookshop Campaign Update – Independent Booksellers Week; How to Be a Better Bookseller in 59 Minutes; Electronic Trading – Saving Time, Money and the Planet; Effective Window Display; Booksellers Guide to Planning and Running a Book Festival. Irish Branch Conference, Galway (March). The speakers were Damian Horner, Marketing Consultant; Tom Dixon, Old Hall Bookshop, Brackley; and Nic Bottomley, Mr B’s Emporium of Reading Delights, Bath. The SBF Annual Review, held in Cambridge in February, was sponsored by Bertrams; Pan Macmillan sponsored the dinner. The e4books Technology Forum (February), organised with the Independent Publishers Guild and BIC, brought e-commerce to booksellers in a well-attended event in Bristol. 12 Key points Independent Booksellers Week (IBW) was kick-started in late 2007 with the inaugural Independent Booksellers Book of the Year Award, won by Alone On a Wide Wide Sea (HarperCollins) by Michael Morpurgo (Children’s) and Suite Française (Vintage) by Irène Nemirovsky (Adult). The 2008 Independent Booksellers Book of the Year Prize was brought forward from the immediate Christmas period, and the winners were Notes From an Exhibition by Patrick Gale (HarperCollins) and The Sleepwalker by Robert Muchamore (Hodder). Having consolidated the Prize, the SBF launched Independent Booksellers Week which ran from 1-8 July 2008. IBW is run by a working party of booksellers and wholesalers. Funding provided to 350 participating booksellers in 2008. IBW 2008 achieved £268k-worth of media coverage. The IBW 2008 media partner was The Times. Strictly Come Bookselling brought authors into bookshops to meet readers face-to-face, creating media photo opportunities. 84% of booksellers felt IBW met or exceeded their expectations. 88% of booksellers were satisfied with IBW. 57% of booksellers organized special IBW events in store. 54% of booksellers secured local media coverage of their shop during the Week. 64% of booksellers thought that publishers were aware of IBW in 2008. 94% of booksellers would like more publishers to be involved in IBW in 2009. 75% of booksellers would like to see titles published especially for Independent Booksellers Week. 4. Little Green Dragon Bookshop, Alton Alan Titchmarsh Strictly Come Bookselling 5. IBF Prize 2008 Children’s Book of the Year poster 6. Robert Muchamore wins the Children’s IBF Book Prize 1 4 2 5 3 1. Simply Books Pocklington in-store display 2. Graham Rand presenting Tim Walker with the IBF Outstanding Contribution award 6 3. Patrick Gale wins the Adult IBF Book Prize 13 Book Market Research Bookselling: International Market Comparisons – A Benchmark Study of Profitability The purpose of the study was to analyse how other bookselling markets operate and compare them to that in the UK. The report was carried out by independent retail market analyst Sarah Charles. The report provided insight to UK booksellers on causes of differences between their profitability and that of booksellers in the Netherlands, Ireland, Sweden, Finland and the US. It specifically considered the changes in market volume and value growth, industry and bookshop profitability, and key profit drivers such as competition, pricing, promotions, discounts and costs. The report also briefly explored the related UK retail markets for CDs, DVDs and stationery. What did the Study establish? Total UK market growth appears to be one of the slowest in the sample Although volume in consumer books has grown at around 2.1% per annum between 2004 and 2007, the value of books in the UK has grown by 2.3% per annum at current prices. All the markets for which estimates were produced appear to have grown in value, with the exception of the Swedish academic market, where volumes have been flat and prices declined slightly. The use of promotions and discounts creates a vicious circle for UK booksellers The US and the UK make significant use of promotions and discounts but this does not translate into higher growth in volumes when compared to other markets studied. The UK has the lowest growth in market value, while the US has managed to achieve higher value growth, reflecting its ability to increase average prices despite the use of promotions and discounts. UK industry profitability is the lowest of the markets studied, on a par with Sweden which is also a high user of promotions and discounts. On-line and supermarkets have a significant influence on booksellers in the UK The UK has higher per capita book purchases than all markets except the US but the lowest profitability along with Sweden. The study estimates that the volume of books sold through UK bookshops declined by about 10% over the period between 2004 and 2007 as loss of market share to other channels outstripped market growth. UK booksellers identified a nearly even balance between on-line retailers and supermarkets as the key influencers of bookseller profitability through their impact on pricing. Low prices and low gross margins in the UK combine to drive the lowest gross profit per book in the sample Even with 0% VAT on books in the UK and Ireland, the average gross profit per book is lower than all other markets due to low margins in both countries as well as to low prices in the UK. At the other end of the spectrum, the Netherlands benefits from higher prices and better margins, despite 6% VAT on books. 14 However, the fixed price agreement in the Netherlands means that books cannot be sold at a discount until a year after release. UK bookshops offer a narrower product range with a lower weighted average gross margin than most other markets It is estimated that on average across UK independent bookshops and book chains, approximately 25% of revenue is generated from sales of goods other than books, personal stationery, gift cards, newspapers and magazines. In other markets studied, non-book sales account for 30-35% of revenue. Booksellers in the UK do not cooperate as much as those in other markets in buying and marketing initiatives In the Netherlands, booksellers support an independent foundation which organises high-profile marketing campaigns. Independent booksellers in Finland and Sweden collaborate in buying and marketing. Although wholesalers in the UK facilitate buying groups, there is greater benefit to the independents in other markets. Some Recommendations Profit protection Think before discounting While these are difficult times for all sectors, booksellers are having a particularly tough time given the already thin margins under which they operate. Knee-jerk discounting is not a solution. Careful strategies have to be devised. Is discounting giving the retailer the desired result? Or is it merely throwing away precious margin? Labour costs The study reveals that many staff are more heavily involved in back-office duties rather than customer-facing transactions. A review of staffing and how staff operates is never wasted. Supply chain Is e-commerce being used to best effect? Multi-channel retailing There is evidence that, while larger booksellers are taking advantage of the on-line retail environment, smaller retailers could still do much more in this area. Product mix An analysis of individual markets could yield higher-margin non-book product mixes (stationery, cards, gifts), an area in which the UK is still lagging behind compared to international markets. Enhancing sales and gross profit per square foot through a change in product mix can have significant bottom line impact. Cash management for the credit crunch Booksellers could usefully analyse working capital requirements, be brutal about volume and variety of frontlist titles, negotiate higher discounts for higher volumes if necessary. Suppliers should help retailers through these difficult times. Marketing collaboration The Netherlands book industry, for example, collaborates to deliver a number of nationwide thematic promotions to promote book buying. Although the UK already has some book events (World Book Day, National Reading Week), there is still room for a grass-roots collaboration to promote different genres. For example, in The Netherlands a whole month is devoted to bookshop events and a PR effort to promote Crime and Thrillers. Partnerships 1. Bookseller Centre, London Book Fair 2008 2. Mark and Nicki Thornton, Mostly Books, Abingdon won the New Bookseller Award at the British Retail Awards 1 2 The London Book Fair The London Book Fair brings together publishers and booksellers from across the world to exhibit for three days in April. Its primary purpose is to showcase UK publishers and other book-related suppliers to international and domestic customers, including booksellers, as well as international publishers and librarians. The BA is a formal sponsor of the event, and the LBF an official supporter of the BA, a mutually beneficial relationship designed to help the Fair meet UK booksellers’ needs and to deliver increased numbers of UK booksellers to the LBF. Key points The BA hosts the Bookseller Centre at the Fair each year, providing a meeting place for booksellers and a showcase of BA products and services. The BA and IBF organises a series of bookseller seminars each year. In 2008, these comprised Marketing Your Bookshop Online; Love Your Local Bookshop Campaign Update – Independent Booksellers Week; How To Be a Better Bookseller in 59 Minutes; Electronic Trading – Saving Time, Money and the Planet; Effective Window Display; Booksellers Guide to Planning and Running a Book Festival. 2008 saw the first series of Publisher Presentations, bringing the leading publishers’ into a dedicated space to present their autumn highlights to, and to meet, independent booksellers. Publishers who participated in this well-received initiative included Hodder, Random House, Penguin, Bloomsbury, Pan Macmillan, Orion, HarperCollins, Little,Brown, Macmillan, Headline, the Independent Alliance and PA Children’s Book Group members. Open University Set Books Scheme The scheme promotes participating booksellers to 150,000 undergraduate and more than 30,000 postgraduate students who generate in excess of £2 million in book sales. Registration is free to all participating booksellers and more than 800 Recommended Stockists are listed on the BA website. A link from the BA’s website to the OU ensures that up-todate information on all set books is instantly available. New Bookseller of the Year Award This new award was presented at the British Book Industry Awards (BBIA) and was sponsored by the Booksellers Association. The aim was to celebrate excellence in new bookselling and to enable winners and shortlisted booksellers to gain recognition by their peers and throughout the wider trade, helping them achieve local media coverage and promote their businesses. Key points The Award was open to bookshops opening between January 2005 and September 2006. Bookshops were asked to submit detailed submissions. The shortlisted bookshops were mystery shopped by independent experts, Store Checkers. At the Fair, the BA acted as the distribution point for LBF catalogues and bookseller bags. All shortlisted booksellers received Store Checkers’ responses. The BA co-hosted a Literary Breakfast with English PEN. This was very popular and brought booksellers and authors together. Shortlisted and winning bookshops were given local media support by the BBIAs. The BA markets and promotes the LBF to its members throughout the year in Bookselling Essentials, email bulletins, on the BA website and at the BA Conference and IBFs. The shortlisted bookshops were Bookstor, Kinsale; Mostly Books, Abingdon; Mr B’s Emporium of Reading Delights, Bath; and Seven Stories, Newcastle. The winning bookshop was Mostly Books, Abingdon. 15 Legislation & Representation Firm Sale on Backlist During the year, two leading consumer book publishers announced their intention to impose on booksellers firm sale conditions on backlist titles. Key points The BA: Made members aware of the development. Asked members for their views on what the publishers were proposing. Advised members as to what both they and the BA could do within the law. Relayed to the publishers concerned members’ deep unease over the proposals. The Chief Executive and Managing Director of the companies concerned came to the BA to meet the Council and discuss the issues, the outcome of which was that both publishers agreed not to continue with their plans. Legislation The BA scrutinizes potential or actual legislation that may affect our members. The aim is to inform members about the introduction of new regulations and, where necessary, to lobby for changes to proposed legislation. Key points In the last year, the BA brought to Council's attention the following: Basic Skills – development of employees. Business Rate Supplement. Business Rates. Carbon Reduction Commitment. Christmas Day and New Year’s Day in Scotland. Climate Change Bill. Commercial Property Rents - impact of business rates. Consumer Contractual Rights. Consumer Protection from Unfair Trading Regulations. Contractual Obligations in Commercial and Civil Matters (Rome 1). Copyright Review: progressing the Gowers proposals Cost of collection (BRC Survey); Creative Content On-line. Creative Industries – DCMS Action Plan. Crime – how best to tackle crime in communities. Crime – Tackling the Causes. Culture in a Globalising World – report from the European Parliament’s Culture Committee. Distance Selling – EU Review. Distance Selling Directive (Europe). Dolly Parton's Imagination Library. Education and Skills Bill. Education and Training 2010 – European work programme. Empty Property Rate Relief. 16 Environmental Labelling. EU Sustainable Production and Consumption Plan. Greenhouse Gas Emissions. High Street Shops (Planning) – Commons debate 26 March. Internet Selling – OFT Review. Local Booksellers – Early Day Motion. Local Income Tax in Scotland. Maestro replaced with Visa debit cards. MasterCard Interchange fees – European Commission Ruling. MasterCard and Visa – the Interchange fees increase. National Minimum Wage. National Recycling Label. National Security Strategy. OFT Report: impact upon productivity of ending resale price maintenance on books. Packaging – the Packaging (Reduction) Bill. Penalty Notices for Disorder. Planning Policy Statements. Planning White Paper and PPS6 consultation. Plastic Bag Ban (London). Plastic Bag Tax Bill (Scotland). PPL and increases in music licences. Rent reviews. Retail crime. Retail Development Bill. RFID Data – Privacy Protection. Rome Convention – inter–EU selling. Sentencing Advisory Panel. Skills for Life Strategy. Small Shops Commission (Conservative Party) and the Richards’ Report. Supplementary Business Note. Theft & Dishonesty offences. Town Centres – Planning for the Future. Town Centres and Road pricing. Transport (local) and road pricing. VAT – review of existing legislation on reduced rates. VAT on audio books. During the past year, the BA has written the following submissions: Commercial leases – DEFRA. Purchase of THE and Bertrams – OFT and Competition Commission. Guidelines for Business and Home Shopping – OFT. PPL Music Licence increases – Copyright Tribunal. Plastic bags – DEFRA. Measuring the Operational Carbon Footprint – devising a simple web measurement tool – DEFRA. Sourcing electricity from renewable suppliers – DEC. BA Loss Prevention Consortium The BA Loss Prevention Consortium (BALPC) consists of senior loss prevention managers from all the leading bookshop chains, plus representation from independents. The main objective is to drive down losses within bookshops by focusing on current problem areas affecting all members and working collectively on long-term measures. Key Points It meets to share information and intelligence and to give feedback to the British Retail Consortium (BRC), their Heads of Security Committee and the Action Against Business Crime partnership. It maintains a dialogue between the BA and the BRC and the Government on a range of issues, including BRC’s annual Retail Crime Survey to which BA members contribute and which this year highlighted the human cost in terms of violence against staff. Shoplifting trends in the current economic downturn. Card Not Present (CNP) fraud, the fastest-growing area of crime as chip-and-PIN has reduced fraud in-store. Stolen books being sold on eBay and other websites. Policing and police reform. Store detectives and the Security Industry Authority. The National Staff Dismissal Register. Printed books remain safe from VAT unless the UK Government itself decides to end the zero rating and to move to a reduced or even full rate, or if European Ministers agree unanimously to end the system of unanimous voting on tax matters and to move instead to majority arrangement. The BA, via the European Booksellers Federation (EBF), works vigorously to ensure that printed books remain VATfree in the UK. Key points In the UK, the BA reacted quickly to the Government’s decision in its Pre-Budget Statement to reduce the standard rate of VAT from 17.5% to 15% from 1 December 2008 for a temporary period of 13 months. Within 24 hours of the Statement, the BA offered advice to its members, explaining that any invoice and receipt issued after 1 December 2008 carrying a VAT element would need to show the correct standard VAT rate of 15%. Furthermore, any order forms, publications, PoS material, websites and so forth which showed the price of a product or service carrying a standard VAT rate would need to refer to the new 15% rate. Members were advised to check with any software suppliers (accountancy, EPOS and website) to ensure that, after 1 December, the VAT rate and any calculations required were made on the new 15% standard rate; to check all printed and other promotional material relating to their businesses to ensure that any standard VAT rate is also shown as 15% from 1 December 2008; and to read the Guidance Notes. The BA worked closely with the PA, Nielsen Book and Bowker to ensure that publishers adjusted the RRP records, where appropriate, with the bibliographic agencies, in order to reflect price changes necessitated by the pre-Budget statement. We must accept that, in these difficult economic times, the Treasury will look for every way possible to replenish its coffers. Thus, VAT will obviously come under the microscope in January 2010 as an obvious means of increasing income. The BA and the PA will be working hard to ensure that, at the next General Election, the main political parties include in their manifestos a statement indicating that it is not their intention to tax books. VAT and books We are in a very privileged position within the European Union – we have no VAT on printed books. The European Commission is opposed to member states having any zero rates, but the UK and Ireland’s exception is on a temporary basis under “transitional arrangements” agreed many years ago by European Commissioner Lord Cockfield. The zero rating can only be changed with the agreement of all European Finance Ministers. As the UK and Ireland have always opposed the ending of zero rate, the Commission has to accept the continuation of these “transitional arrangements”. In Europe, three things happened in 2008 which required the BA’s attention: A review of the existing legislation on VAT-reduced rates by the European Commission's Directorate for Taxation & Customs Union. The suggestion by some member states that the rate for audiobooks be reduced to that applying to printed books in each member state. The suggestion by a number of member states that e-books carry the same rate as printed books. Working through the EBF, a submission was sent to the Directorate General in May 2008. The EBF once again stressed to the DG the importance of not taxing reading throughout the European Union, as books play a fundamental role in a knowledge-based society. 17 Legislation & Representation Products and Services The European Booksellers Federation The European Commission is unwilling to listen to representations from national trade associations but welcomes dialogue with umbrella organisations that collectively represent member states. The European Booksellers Federation (EBF) exists to represent the views of Booksellers Association members to the European Commission and to other European institutions and the BA is represented on the Board. Key points During 2008, EBF has been involved with: The European Commission's wish to end the transitional arrangement which allows the UK and Ireland to exempt books from VAT. The pressure placed on the Commission by some member states to reduce VAT rates of e-books to the same level as printed books. Google's provisional Settlement with US publishers and authors. The European Commission's Green Paper on Copyright. The need for improved book trade statistics throughout the European Union. Fixed and free price systems for books within EU member states. The development of the European Digital Library, Europeana. http://www.europeana.eu/ Books and the promotion of reading: the EBF has worked with the Federation of European Publishers, the European Writers' Congress and the European Commission to set up a European Literary Prize. The Directory of UK & Irish Book Publishers 2008 The Directory of UK & Irish Publishers is a print and online reference of UK and Irish publishers, published in conjunction with Nielsen BookData. It’s the most comprehensive and detailed directory of book publishers available. The data, from the BA and from Nielsen, is wide and deep. Breadth comes from the thousands of publisher records held by Nielsen, depth from the rich data held by the BA on many of those publishers. Key points Searchable database of over 6,000 UK and Irish Publishers (including wholesalers, distributors, sales and marketing agents and remainder dealers). Rich information on thousands of publishers: trade terms; key personnel; payment methods; returns and distribution arrangements. Helps to find hard-to-locate publishers. A4, 300pp print directory. Easy-to-use website. Free 30-day trial available. £52.50 (+VAT) to BA members; £67.50 (+VAT) to non-members. Business Support Helpline The Business Support Helpline is a free legal helpline for BA members. Run for the BA by CronerConsulting, the service offers booksellers help on tax, VAT, health and safety, employment law and HR issues. The Business Support Helpline provides technical and legal help for booksellers – indies who don’t have HR of their own – and chains who want confirmation on their decisions. Key points Unlimited access. Only available to BA members. Funded by the BA and free to members. 18 A New Introduction to Bookselling Course Organised by the BA and the Independent Booksellers Forum, the course ran twice in 2008. It is intended for booksellers who have recently set up in business and anyone who is considering opening a bookshop and also for new members of staff. The course aims to show attendees how to create and maintain a robust business and to give them practical understanding of bookshop finance. It also covers the day-to-day tasks of running a bookshop and deals with such issues as customer loyalty. Tutor – Patrick Neale of Jaffé & Neale Bookshop and Café, Chipping Norton. Guest speaker – Kate Gunning, Head of Buying, Foyles. Course feedback: “I found this course really useful.” “Great, informative talk.” “Interesting and entertaining.” “It could not have been better prepared or more useful.” “Fantastically interesting.” “Very enthusiastic and knowledgeable tutor.” Starting & Running a Bookshop This textbook overview of starting and running a bookshop covers finance, business planning, location, buying stock, marketing, management, pricing, selling, preparing to open and IT. Starting & Running a Bookshop is an invaluable publication for prospective booksellers who want to investigate setting up a bookselling business or for anyone seeking a reference book on the fundamentals of bookselling. Key points BA Affinity Deals Affinity deals are negotiated with a range of third-party suppliers who supply products and services to BA members. Normally these are discounts or exclusive deals, for non-book products and services. Affinity deals allow booksellers to source products and services at rates they would not otherwise be able to secure. Particularly advantageous to smaller booksellers. Key points MemberBenefits by LogBuy – discounts on such household names as TomTom, BT, Laithwaites Wine, Radisson Hotels, Apple and Hewlett Packard. Accessed through www.booksellers.org.uk Tailored bookshop insurance for UK and Irish booksellers through Willis UK. Excellent credit and debit card rates through Lloyds TSB. Free professional help and advice from the Business Support Helpline. Reduced preferential parcel rates through ANC & DHL. Reduced rates for utilities through LSI Brokers. Reduced rate healthcare from PHP Healthcare and Patient Choice. Reduced price products – carrier bags, recycled cotton carrier bags, order forms and stationery, face-out boxes. Reduced price office supplies through Corporate Express. Reduced price stocktaking through Henderson Valuers. Professional consultancy on shop design through Insight Design. Reduced price display equipment through Pennant Design. Mystery Shopping Service from Storecheckers. Local media search. Retail review scheme from Retail Workshop. Bookselling Essentials The Directory of Members is the most comprehensive and detailed directory of book retailers available in the UK. Bookselling Essentials is the BA’s quarterly print newsletter, mailed to all members in February, May, August and November. It carries news about BA Group company activities and trade initiatives. Key points Key points £28 from the BA. Written by an experienced bookseller. The only publication of its kind. Directory of Members Comprehensive information on all BA members. Contact details. Subject specialisations. Free to BA members. The main communication channel for BA members. Published every quarter. Carries news from BA, Book Tokens and batch. Includes inserts and offers from affinity partners. 19 E-Commerce and EDI batch The batch Financial system The financial information and payment service for the book trade continued to grow in 2008, throughput by 15%, revenue by 14% and electronic users by 24%. batch is a BA service designed to help booksellers in difficult times. batch is an important tool for booksellers as it helps remove costs. “ I am a total convert to the batch system and would recommend it highly to fellow booksellers – for a number of reasons. First, the ability to authorise payment of most of our invoices online in just one place makes our lives a lot easier. Second, as payment goes out on the last day of the month, it helps to maximise our credit and track our cashflow more effectively. It also helps us keep track of orders and invoices, so we don’t have to waste our time – and suppliers’ time – chasing up lost paperwork. batch Returns is also an incredibly useful service. Instead of calling up a rep or customer service to return books, we simply enter the book ISBN and quantity into the system. A response from the publisher arrives within 24 hours, and then we print out the returns paperwork and labels, which is a real time-saver. batch also supplies integration software (BIS) for Sage 50 Accounts, the market leader accounting programme used by many booksellers. In the past, you needed a bookkeeper or dedicated bookseller to do the tasks batch does automatically. I estimate that this service alone has saved us £1,000 per year. ” Philip Wicks of the Castle Hill Bookshop in Yorkshire, Chairman of batch Electronic data from batch The majority of booksellers access batch over the internet, but we are also providing electronic data feeds to more than 130 businesses. This enables those businesses to integrate batch into their existing accounting and stock control systems. The batch Returns system The electronic service that enables booksellers large and small to acquire permission to return stock and manage the physical return of books. batch Returns continues to grow and we have now processed over 96,000 returns requests for booksellers. We expect many more suppliers to join in the coming year. “ WHSmith is pleased to announce that the move of Bookpoint on to the IRI returns system will take Returns Authorisation applications to 91% within the business. It is anticipated that by April 2009 with further suppliers planned to come on line, WHSmith RA requests through the IRI batch System will move up to 94% of all applications. ” Jenny Brownley, Merchandising Development Controller, WHSmith 20 batch responding to the needs of the book industry batch has become a business-critical service for the entire book industry. It has to run 24 hours a day, seven days a week, and is accessed by booksellers in 56 countries across many different time zones. In acknowledgment of its importance, we have undertaken substantial work to ensure continuity of service and have moved our main system into a state-of-the-art data centre with a full disaster recovery programme. The batch system infrastructure has been modernised to use the latest technology. Giving something back to the membership The Booksellers Association is rewarding those booksellers using the batch Financial service for 75% of the full calendar year by offering a £40 rebate off next year’s BA subscription. batch attends the London and Frankfurt book fairs, the Independent Booksellers Forum and BIC e4books forums batch is a BA membership service and it is important that we meet as many of our users as possible in order to ensure that the service continues to develop to the benefit booksellers. Therefore, we have a presence at most events in the bookselling world. Book Industry Communication (BIC) BIC is an independent organisation set up and sponsored by the Booksellers Association, the Publishers Association, the Chartered Institute of Library and Information Professionals and the British Library to promote supply chain efficiency in all sectors of the book trade through e-commerce and the application of standard processes and procedures. BIC works to help the book industry be more efficient in the areas of the supply chain, product information and identification, digital content, e-commerce, technical standards and accreditation. Key Points – EDI Virtually all the revisions to BIC’s EDI documentation are now complete and the documentation will be updated on a six-monthly basis, taking into account changes and decisions agreed at BIC’s technical implementation clinics. BIC has now published 10 draft standard message sets which cover most of the obviously appropriate supply chain transactions. Key Points – Digitisation A discussion paper by Michael Holdsworth on identifiers for digital product, jointly commissioned by BIC and the Book Industry Study Group, was published in early January. The BIC Digital Supply Chain Group held a successful workshop in May, attended by around 70 people, in an attempt to nail down some of the issues being faced in the supply chain and its standards requirements. The two primary outcomes were a reaffirmation of support for the ISBN standard as the basis for identification of digital products and the emergence of a consensus that intermediaries of one kind or another (retailers, aggregators and data agencies) were going to play a significant role in the supply chain in the future. Two other initiatives have begun as a result of the supply chain group workshop: a meeting has been held to discuss how sales reports and invoicing can be handled in standard electronic formats; and discussions have begun about the standardising of publishers’ digital marketing collateral and how it might be addressed in existing or new accreditation schemes. The launch of the Sony e-Reader in the UK, the widespread adoption of the .epub format, and the consensus on the unique numbering of each digital format have all led to a degree of stability in the marketplace. Sony e-Reader Website – www.bic.org.uk The launching of the e4libraries site has provided the opportunity to implement some improvements across the three parts of the site – BIC, e4books and e4libraries. At the same time, BIC has invested in a content management system which means the site can be updated much more effectively and quickly than has been the case so far. However, sales of digital products remain tiny and availability patchy. Growth in product output and, crucially, in the number of channels to market will provide the real test for the industry. BIC e4books e4books is a project initiated by BIC in 2004 with the aim of increasing the use of ecommerce in the book industry supply chain, working towards 1 May 2008 as e-Day, the date by which trading partners would be capable of exchanging basic electronic messages. Booksellers specialising in library supply will welcome the following: BIC’s new e4libraries project has got off to an excellent start and is providing a good focus for moving library sector standards forward in EDI, product information and RFID in both public and academic libraries. The initial work on scoping the project has been the subject of presentations at a CILIP seminar at the London Book Fair and five regional NAG seminars, where it has been widely welcomed. The e4libraries subject category headings aimed at the public library sector have been published and a website (http://www.e4libraries.org) has been launched. Key Points – Product Information The UK ONIX Group, which was previously part of the Product Metadata Group, has been providing detailed input to the development of ONIX version 3.0. Its aims have been to improve the efficiency and accuracy of the book industry supply chain by the use of e-commerce. Key Points In February, a well-attended e4books forum for booksellers and publishers was held in Bristol, with the imprimatur of the BA’s Small Business Forum and the Independent Publishers Guild. The project was also presented at a Nielsen BookData open day for Scottish publishers and at the BA Irish Branch conference. EDItEUR has commissioned some research into the possible areas of expansion necessary to enable ONIX to cope with a proliferation of digital content. The event provided publishers and booksellers with the opportunity to gain an understanding of e-commerce in the supply chain and to talk to systems and service providers. There are now 23 accredited publishing groups covered by the BIC Product Data Excellence Awards, including almost all the major publishers. During 2008, BIC accredited more than 80 organisations under the e4book project. All their names are listed on BIC’s website. Key Points – Supply Chain BIC participated at a meeting organised by EDItEUR and GS1 Global in Frankfurt to discuss standards for RFID tag structure in the trade. A proposed solution has the support of the two main implementers so far, BGN/ Central Boekhuis and the Portuguese bookshop Byblos. Helen Fraser, Chair of the BA/PA’s Environmental Action Group, presented the work of the EAG to the BIC Supply Chain Group. BIC is ready to undertake any appropriate work which the EAG might want progressed. The future of BIC’s Supply Chain Group is currently under consideration, pending a review of activities and support. Companies both large and small gained accreditation, including many independent booksellers. The e4books website remains a valuable resource and accreditation will continue as the benchmark for e-commerce worthiness. A free guide, How to Get the Best Out of Bookshop Systems and e-Commerce, was published under the e4books banner and distributed to all BA members. The number of publishers which have migrated to Nielsen BookData’s website for the collection of Teleorders exceeds 14,000 – convincing evidence that e-trading is now part of the landscape. See www.e4books.org for more information. 21 E-Commerce and EDI BIC – IRI Policy Group The standards for the Industry Return’s Initiative process have now been formally published and a new IRI Policy Group has been set up by BIC, reporting to the BA/PA Liaison Group. Key Points All the major distributors are now operating under the IRI rules, with typically over 90% of returns requests being processed electronically. This is a major achievement after many years’ hard work and is unique to the UK book industry. batch has also agreed to host a new Returns User Group, open to all interested parties, to address operational issues, help new implementers and look towards an extension of electronic returns messaging to increase the number of players. All BA members can use the free batch service. Bookselling in the Digital Age Digitisation Key points Leading consumer book publishers are moving very quickly to digitise content and wholesalers and digital aggregators are offering e-books to booksellers. Amazon and Google are offering consumers the ability to see the inside of a book from a remote PC. Booksellers are anxious because Key points Last year, the BA felt it most important to Make it clear to publishers that booksellers have a key role to play in the digital supply chain. Encourage booksellers to think seriously about getting involved in the supply of digital product. Booksellers may well, in the future, be locked out from selling millions of in-copyright titles in digital formats. Booksellers would be left to focus on selling “traditional” books. Libraries and universities will find it easy to by-pass booksellers. Google will be able to have a huge influence on price (as with iTunes). Keep booksellers up to date with digital developments. Google will dominate the digital book market – especially for digital works in English controlled from the US. Ensure that booksellers are able to identify digital products and obtain them easily. Society will be culturally disadvantaged – there will be fewer bookshops to serve communities. Actions taken by the BA The BA brought together booksellers, publishers and BIC to establish how digital products can be identified and the key standards appropriate for them. We secured the agreement of the BA/PA Liaison Group to use a different ISBN for each digital format; also that strong support should be given to the e.pub format and the International Standard Text Code (ISTC). Google Google announced a proposed agreement in the US on 28 October 2008 to end a court action against them by the Authors Guild and the Association of American Publishers (AAP). The proposed settlement would enable users to browse or buy books online using Google Book Search and, in the case of out-of-copyright titles, to read an extract or even the entire text. Under the provisional terms, US users will be able to search and preview the 7 million titles already scanned with the option to buy. A publisher has to give Google permission to offer these services for its in-print books, but with out-of-print books Google will continue to digitise titles unless a publisher specifically opts out. 22 Google is already in a very powerful position to access consumers. Although this is a US settlement, it is probable that whatever is agreed in America will impact on the UK and Ireland to the possible detriment of the BA’s members. The BA met representatives of Google on 16 December 2008 and made the following points in addition to those above We wish, if possible, to work with Google in order to bring about a situation whereby BA members can benefit from the digitisation of books. Google Book Search already gives users the ability to search for millions of titles. Under the proposed US Settlement, this figure would increase substantially with the inclusion of (i) more out-of-print titles and (ii), for the first time, so-called orphan works. Google is an inclusive operation and we hope that where it holds digital versions of out-of-print and orphan works those works would be made available to BA members on trade terms, either as digital copies, or as PoD. This could significantly increase the number of saleable titles available to members. Once the proposed Books Rights Registry is up and running, we will urge all publishers to register their titles in order that everyone can find out about them. We hope also that BA members will have free access to the Registry so they too may uncover books which are currently hard to trace. Further meetings between the BA – including representatives of the BA Council – and Google will take place after the Annual Report has gone to press. The Environment green4books The Environmental Action Group The BA and PA set up the EAG to urge booksellers and publishers to reduce their carbon emissions; to give booksellers and publishers practical ideas as to what they could do within their own businesses to better support the environment; and to encourage businesses across the industry to share best practice. Key points The EAG's website, www.green4books.org.uk, hosted by the BA, offers booksellers and publishers practical advice and ideas as to what can be done within their own businesses to help protect the environment. The site gives booksellers advice on carbon footprint; recycling; packaging; plastic bags; energy; the supply chain; travel; consumables; and policy within the business. The EAG is examining four areas in particular: The use of certified paper in book manufacturing, and an appropriate symbol/logo for consumers, showing that the paper has come only from sustainable forests. What the carbon footprint might be for a typical book. The need for a simple government-devised web measurement tool which would enable booksellers and other businesses to calculate easily their own operational carbon footprints. The need for government to carry out a full, independent review to determine the best approach to carbon reporting so that, in particular, onsite renewable energy is reported correctly as zero carbon, allowing end-users to claim financial subsidies. Representations on these last two points have been made in face-to-face meetings with DEFRA. The BA also supported the national campaign to reduce substantially the use of plastic bags. PoS stickers were given to members in order to encourage consumers not to ask for a bag at the time of purchase. However, the BA does not support a total ban, believing that in some situations (a rainy day, a heavy book) a plastic bag is necessary. Representations to support these points were made to DEFRA. This Annual Report Printed by The Colourhouse using their purprint ® environmental print and technology. The printing inks are made from vegetable-based oils and 95% of cleaning solvents are recycled for further use. The Colourhouse is a carbonneutral company, accredited with environmental management system ISO 14001 as well as being FSC-accredited. This document was printed on a revive 75 silk, a recycled paper containing a minimum 75% recovered waste and 25% mill broke and manufactured at a mill accredited with ISO 14001 environmental standard. Revive is an FSCaccredited paper. Pages from the green4books website 23 The Booksellers Association wants to hear from you There are many ways in which you can communicate with the BA. Booksellers Association, Minster House, 272 Vauxhall Bridge Road, London SW1V 1BA T 0207 802 0802 F 0207 802 0803 E mail@booksellers.org.uk www.booksellers.org.uk www.nationalbooktokens.co.uk www.batch.co.uk BA Council – If you wish to raise an issue to be discussed at the Council meetings, please send your comments to tim.godfray@booksellers.org.uk or any other member of BA staff as detailed below. At Events – BA staff are always available at: the London Book Fair, the BA Annual Conference, wholesaler trade shows and at the numerous Independent Booksellers Forum events organised by the BA. In person at the BA offices. Just contact the person you wish to see to arrange a meeting. BA Group Senior Staff Tim Godfray Chief Executive, BA Group tim.godfray@booksellers.org.uk Stuart Mathews MD, National Book Tokens stuart.mathews@booktokens.co.uk Fraser Tanner MD, batch.co.uk fraser.tanner@batch.co.uk Tim Trigg Finance Director, BA Group tim.trigg@booksellers.org.uk Pimms Banwait IT Director, BA Group pimms.banwait@booksellers.org.uk Tom Catton, Financial Controller, BA Group tom.catton@booksellers.org.uk Sydney Davies Head of Trade & Industry, BA sydney.davies@booksellers.org.uk Alex de Berry Head of Marketing & Sales, National Book Tokens alex.deberry@booktokens.co.uk Meryl Halls Head of Membership Services, BA meryl.halls@booksellers.org.uk John Parke Company Secretary and Head of Meetings, BA john.parke@booksellers.org.uk Alan Staton Head of Marketing, BA alan.staton@booksellers.org.uk Uzo Onuora Customer Relationship Manager uzo.onuora@booksellers.org.uk Design by us2design.co.uk