Independent Bookstores With Book Sense Report Modest Gain in Book Sales for 2002

Independent bookstores participating in the Book Sense marketing program reported that total 2002 book sales were slightly ahead of the results for 2001, reflecting the mixed experiences of the entire book industry during 2002.

Based on a recent revenue study conducted by the American Booksellers Association among bookstores with Book Sense, just over half of the stores (52 percent) reported revenue increases in 2002 over the previous year's results. This revenue survey does not reflect revenue performances for the first quarter of 2003 or the impact of current economic conditions and the war in Iraq. In the previous three years, more than 60 percent of the bookstores had reported revenue increases over the previous year. Of the stores reporting revenue increases in 2002, about half had increases of six percent or more.

A significant percentage of the bookstores reported that the revenue decline started in the second half of the year, with the largest decline taking place during the 2002 holiday period (October - December). A revenue study conducted in the first half of 2002 showed 55 percent of the bookstores reported increases over the previous year.

Industry reports indicate there is a continuing trend by consumers to purchase book gift certificates during the holiday season, which are not included in bookstore revenues until they are redeemed. In addition, the Consumer Trend Study conducted by Ipsos-NPD reported that book sales during the October - December period have been on a steady decline for the past five years, while the January - March period shows a corresponding increase over previous years. Growing sales of gift certificates during the holiday season is a major influence in this seasonal shift of book sales.

Over half of the bookstores reporting to the Book Sense Revenue Survey also indicated that almost 50 percent of the gift certificates sold in their stores during 2002 were purchased during the October - December season. These certificates will most likely be redeemed in 2003 and be reflected in 2003 revenues.