Borders and the Froot Loop Gambit

March 13, 2008 | 14 3 min read

A recent Wall Street Journal story (I’ll summarize here if you can’t access it), is reporting that Borders intends to “sharply [increase] the number of titles it displays on shelves with the covers face-out.” It is hoped that this move will increase sales, but “the new approach will require a typical Borders superstore to shrink its number of titles by 5% to 10%.”

The article goes on to note that “Reducing inventory goes against the grain of booksellers’ efforts over the past 25 years or so. Chains like Borders and Barnes & Noble Inc., the nation’s largest book retailer, became household names with superstores that stocked as many as 150,000 titles or more. The rise of Amazon.com Inc., which offers a vast selection online, made it even more important for stores to offer deep inventories.” A little later, the reporter concludes, “With the book market facing unmitigated gloom, Borders has little choice but to experiment.”

I’ve talked about chain stores and how they do and don’t satisfy the avid reader: In “What Makes a Bookstore?“, a golden oldie from about four years ago, I granted that “when it comes to hanging out, it’s hard to beat the chains.” But I relish and much prefer the relevance of a good independent bookstore, which should allow one to “walk into the bookstore and be able to grasp, based upon which books are on display and based upon conversations with staff and fellow customers, what matters at that moment both in the wider world and in the neighborhood.”

In this framework, putting ever more books face-out and thinning inventory is exactly the opposite of what I want a bookstore to do. The failure of chain bookstores is that they try to make the bookstore experience like any other retail experience, placing the merchandise just so in the hopes that it will entice the shopper. Indeed, according to the WSJ, “The new display strategy is the brainchild of CEO George Jones, who says he learned when he was a buyer at Dillard’s Inc. early in his career that dresses sell better when the entire garment is shown rather than hung sleeve-out.” John Deighton, editor of the Journal of Consumer Research, has a similar point of view. “‘Breakfast cereals are not stocked end-of-box out,’ he says. ‘You want to your product to be as enticing as possible. It’s a little bizarre that it’s taken booksellers this long to realize that the point of self-service is to make the product as tempting as possible.'”

And who knows, tests have shown that “sales of individual titles were 9% higher than at similar Borders stores.” Still, further down this path lies the ultimate in bookselling vapidity, the airport bookstore, where all the books are face-out, and the desperate traveler is forced to choose between bad or worse.

As I thought about turning books into so many boxes of Froot Loops, the article left me with a final question. Many bookstore regulars may not be aware that bookstores, from chains to indies, accept what’s called “co-op” from publishers. Ostensibly, this is money that is meant to help market certain titles. In practice, co-op money dictates display areas, what ends up on prominent front-of-store tables, and, yes, face out placement on shelves. The article doesn’t mention co-op explicitly, but I wonder if this is another motivation for Borders. If so, putting books face-out may lead to incrementally more sales, but it may also bring in more marketing cash from publishers, and the end result is an ever more pre-packaged, market-tested, one size fits all experience for readers.

Edit: Thanks to F.S. for the correct spelling of “Froot.”

created The Millions and is its publisher. He and his family live in New Jersey.