Industry Analysis & Industry Trends
Book retailers have struggled through a difficult chapter over the five years through 2013-14. With sales expected to contract at a compound annual rate of 7.3% 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, internet 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 sales are expected to contract by 3.2% in 2013-14, to £1.3 billion... purchase to read more
Industry Report - Industry Investment Chapter
The UK Book Retailers industry has a low level of capital intensity. IBISWorld estimates that operators in the industry will spend £15.6 on labour costs for every pound spent on capital in 2013-14. 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. The increasing use of online retailing alongside physical shops has increased capital costs for this industry, with retailers having to invest in computing equipment, systems and procedures that are required to operate as online traders. Although to a certain degree this has been offset by the competing need to offer greater levels of service to compete with online bookstores... purchase to read more