Sad news yesterday for book and magazine lovers in Australia and New Zealand, as the parent company of Borders, Angus and Robertson and Whitcoulls announced that it was going into voluntary administration.
It’s important to note here that this doesn’t necessarily mean that these stores are shutting down. More than anything it means that they’ve acknowledged that something is seriously wrong with their business and that they need to take some drastic measures to turn it around.
Thanks to everyone who tweeted, e-mailed and called… but contrary to popular belief, we’re not rejoicing. As far as we’re concerned any book store shutting down anywhere is pretty much always a bad thing. We love books and we love bookstores and their presence is absolutely good for the publishing industry as a whole.
Other than the fact that 2,500 jobs might be lost, which is a massive deal in itself, it is bad for the magazine industry. Borders (and to a lesser extent Whitcoulls) make up part of our competitive landscape. Competition is a good thing: it keeps us on our toes and forces us to innovate. But, even more importantly, it stimulates demand. We don’t (and can’t!) have the far-flung geographic presence that Angus & Robertson or Whitcoulls has. If those stores close, it means that lots of folks will no longer have access to all the awesome magazine titles that we love. While many of you will think that this is a great thing for mag nation, as it means that more sales will come our way, this is very much a short-term perspective.
Many of the customers who buy these niche mags will simply stop buying. This is a disaster for the niche publisher, who sells a lot of magazines through us, but who also sells a lot through our competitors. If these customers simply drop out of the market, the publishers lose, which puts pressure on their business model, which in turn impacts us. Not to mention the residents of Tuggerah in New South Wales or Chermside in Queensland, just some of the 26 locations serviced by Borders stores across Australia.
So, you can see that it is not as simple as smugly smiling at the woes of a competitor. Not that we would do that anyway, but life is a little more complicated. This doesn’t mean that we won’t think aggressively about how to woo their customers. Competition is competition and magazines make up only a small part of their overall business.
Yet, even if we have the boxing gloves on, winning on points in this instance is better than a knock out punch.
Thanks for this fantastic post. I am quite devastated to hear the news – not only are the bookshops I love in trouble, but Angus and Robertson have a long history in Australia and to lose such a well established business does send ripples throughout the industry.
I got into niche magazine publishing because I love magazines. It’s so easy to start a blog or online magazine, but there’s something special about the tactility of print that digital cannot replace. There’s much to be said too about browsing for books / magazines in a store than buying them online. Online, you generally search for something and find a book. In a bookstore / magazine store, browsing the shelves will take you on twists and turns and you can find some really amazing things! When I visit Melbourne, Magnation is often my first stop and I’ve made great discoveries there that I can’t find elsewhere.
So I’m cheering on Borders, A&R and Whitcoulls to pick themselves up and turn their business around, but don’t worry Magnation you have a special place in my heart (and wallet)!
[...] This post was mentioned on Twitter by Lifelounge, Sahil Merchant, Chrissie, Leigh Hanney, Spit Press and others. Spit Press said: Well said, Magnation. http://blog.magnation.com/2011/02/18/a-bad-day-for-print/ http://fb.me/vT72uybj [...]
I agree and respect everything that you have said in this article and think its fantastic that a business that is succesful can be business minded whilst maintaining a sense of decency and ethics.
Regarding the voluntary administration of the aforementioned company, it should be noted that, as you said, this does not mean the end of these stores.
Hopefully, the process will not only lead to a return for these stores to a more robust financial future, but with the problems plaguing the publishing industry from the internet to the ipad to god knows what is coming round the corner, it will hopefully allow all within the publishing industry, from the grass roots to the retail store to learn how to modify their business plans and not only find their place again in a buyers market, but hopefully use the internet to reinforce their trade.
All stores benefit from this, which of course means that the consumer benefits in the long run.
May administration, voluntary or otherwise never darken your door mag nation.
If it does, refer it over to the ‘business’ section and while its back is turned, hit it with a plank.
Thank you for this brilliant post. I find your compassion and business ethics applaudable. As a Borders and Magnation customer I think you guys are a class act. Good luck in the future.
long live mags. long live mag nation (and the others).