Industry Analysis & Industry Trends
Book retailers have struggled through a difficult chapter over the five years through 2014-15. With revenue expected to contract at a compound annual rate of 8% over the period, industry operators have faced a tough trading landscape. This unfortunate story is partly the result of increasing competition exerted on the industry by external operators such as supermarkets and online retailers, and the growing popularity of e-books, which are rewriting the way consumers enjoy text. The performance of book retailers has also been affected by fluctuations in the level of real household disposable income and subdued consumer confidence.
Industry revenue is expected to contract by 4.4% in 2014-15 to reach £994.6 million... purchase to read more
Industry Report - Industry Investment Chapter
The UK Book Retailers industry has a low level of capital intensity. IBISWorld expects operators in the industry to spend £15.42 on labour for every £1.00 spent on capital in 2014-15. Historically, book retailing was regarded as a labour-intensive industry as staff were required to undertake a number of activities including store display, stock taking and customer service. However, the increasing use of online retailing alongside physical shops has raised capital costs because retailers have to invest in computing equipment, systems and procedures in order to operate as online traders. However, to a certain degree this has been offset by the need to offer greater levels of service to compete with online bookshops... purchase to read more