Local bookstores battle big names, poor economy

By: Casey O'Lear

Monday, January 25, 2010 - 1:22 AM

Despite a struggling economy, many independent booksellers are fighting diligently to compete with chain stores such as Barnes & Noble and Borders, as well as big-name online retailers such as Amazon.com. However, by offering unique services, hard-to-find books and friendly in-store atmospheres, alternative bookstores may pose more of a threat to their corporate counterparts than expected.

The economic recession noticeably hit chain bookstores recently. For the past few years, Borders has been trying to cope with its debt by laying off employees, coming up with special promotional deals such as discounts for “Borders Rewards” cardholders and closing hundreds of its smaller, nationwide Waldenbooks locations, according to recent reports. Borders took out a $42.5 million loan in 2008 from its major stockholder to remain in business, keeping the company in debt. During the last fiscal year, Borders’ profitability was down 4.71 percent and its most recent quarterly revenue growth was down 13.1 percent.

In the wake of the recession’s effects on commercial bookselling, many locally-owned independent bookstores have been prospering and are able to keep their doors open to the public, due in large part to loyal customers and special services.

Dharma Books

Ronda Smith, a lifelong book-lover and former general manager at Borders for 10 years, purchased Dharma Books from its previous owner in September. The bookstore, located in a prime location at the heart of downtown Reno, draws customers in with its promise of rare and out-of-print used books, as well as a wider variety than other shops.

“About 60 to 70 percent of the store is made up of rare or out-of-print books, and you can get current-selling books for less than 50 percent of their price at Barnes & Noble,” Smith said. “Borders downsized sections like art, so we have twice as many art books here than they do. We also carry books on Nevada history and philosophy — things that are harder to find.”

Smith finds that much of the appeal of used book-buying is attributed to the added character of an older book.

“I think people really like the look of an old book,” she said. “If it’s required reading like ‘1984’ or Steinbeck, you can get a really neat copy. We just got a copy of ‘One Hundred Years of Solitude’ that has the greatest cover. It makes it so much more appealing. One thing I didn’t really think about is that giving an old copy of something by someone’s favorite author is a great gift. I think there’s value moneywise and you’re recycling.”

Although Dharma Books attracts some customers with its downtown location, the majority of its business is conducted online through various bookselling Web sites. By the end of February, Smith hopes to have a new Web site up and running for conducting all of the store’s online business.

“We sell more on the Internet than people walking through the door, but without the location, we can’t buy books,” Smith said. “It’s easier to direct people to the Web site for special orders. Now it’s like the best of both worlds. We can make it selling online, and I like meeting people.”

Smith finds it easier to deal with individual people buying and selling used books and collectibles than it is to buy and sell new books because prices for used books can be set lower.

“If people want it, they’re going to pay for it,” she said. “If there is out-of-print stuff that people can’t find, we’ll probably have it.”

Sundance Bookstore

Sundance Bookstore co-owner Christine Kelly credits her store’s success largely to a knowledgeable staff of book experts and a loyal customer following. The store, located within a shopping center on Fourth Street and Keystone Avenue, has been locally owned and operated for 25 years.

“Anybody who loves reading should give independent bookstores a chance,” Kelly said. “The people who work here have worked here for a long time. They’re book people. They know the trends and are good at hunting and finding books.”

When Sundance opened its doors in 1985, chain bookstores had not yet settled into the area, allowing the shop to carve out a niche for itself in the Reno community that it has maintained.

“The staff knows books,” Kelly said. “They’re a good resource and provide good service. Local businesses in general are important to the community. We have the ability to be sensitive to trends and changes that are not all mainstream, New York Times bestsellers.”

Sundance offers a multitude of services for the community, including stocking all kinds of books, music and housing events such as book signings and promotions for locally-based authors. The store also provides a regular mailer that keeps subscribers abreast to hot releases, in-store events and other book-related occasions, such as festivities for “Poetry Month” and the shop’s bi-monthly “Local Author Day.”

“I think people underestimate the passion people have for reading,” Kelly said. “They say that people are reading less, but I still see people buying books, and buying good stuff to read. People are much more cautious and might buy fewer books, but we’ve seen a little bit of pick-up so far this year. We just support the notion of conversation and getting a dialogue out there. Without discussion, it can be extremely dangerous for a group of people living out there.”

Paperback Exchange

Across town, the Paperback Exchange also hopes to foster creative conversation with its quirky atmosphere and unique services.

“It’s not a traditional bookstore because it’s all used paperbacks,” manager Lynn Smith said. “Inside, we have 70,000 books and probably 80,000 outside, so we have quite a stock. You can find a lot here that you wouldn’t find new or even on eBay or Amazon.”

The Paperback Exchange has been operating in Reno for 40 years and has also garnered a loyal following in that time.

“We have a really solid customer base,” Smith said. “Since our store opened, kids who were coming in with their mom now have kids of their own that they’re bringing in. We have kind of a family atmosphere. We have a cat. We’ve had animals as long as I’ve been here. People like that homey atmosphere. It brings people together. They’re always standing around talking and sharing stories.”

The Paperback Exchange is responsible for countless community service efforts such as providing books for local organizations throughout the years. In addition to allowing customers to trade their books for store credit that can be used to acquire new books, the store also donates books to various charities.

“We donated to the veterans’ hospital and the Indian colony,” Smith said. “We even donated to the jail and helped them set up their library. There was a gentleman who was in the Peace Corps, and he would come in to pick up books to Kenya, Africa, making sure that they have books to read.”

The store offers many of its books for less than $1, and its staff is always enthusiastic about helping customers find what they are looking for.

“Everybody in the store has a genre that they specialize in,” Smith said. “We don’t always have classic literature, but we get a reading list every year and have that on hand. Students can come in and get a book for 40 cents. And we all need some kind of junk books to read between classes.”

Although business has been slower than usual for the Paperback Exchange due to the economic recession, the bookstore remains resilient with the support of its valued customers.

“It really has slowed business a lot,” Smith said. “People aren’t spending as much on entertainment. I think it’s a general problem with everybody cutting back. We still get a lot of people who come to town every year and get books while they’re here. People come from Winnemucca to do their shopping and save up books to bring in with them to trade for things they can’t find in their own community.”

Despite economic troubles and competition from the likes of large, corporately-owned chain stores, local bookstores are determined to maintain their customer base and never go down without a fight.

Casey O’Lear can be reached at colear@nevadasagebrush.com