Worldwide Business Information and Market Reports
ISBN 1-85765-788-8
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The bookselling industry is still adjusting to the
effects of the ending of the Net Book Agreement (NBA), and it is still not
entirely clear whether the heavy retail discounting which has ensued will
increase volume sales in the long term, or will simply devalue the market.
According to the Publishers Association (PA) (which has revised the figures
it has published in previous years), in 1996 the retail value of the market was
£2.7bn. This represents a fall of 2 percent since 1995. Consumer books accounted
for 66.6 percent of value sales in 1996 -- a lower proportion than was the case in the
2 previous years -- which can be attributed to discounting in this sector. Key
Note estimates the figure at £2.8bn for 1997.
The academic and
professional, and school book sectors have both been affected by cutbacks in
public spending; for example, in student grants, as well as in funding for
schools and higher education. Library suppliers have had a difficult year, and
recent consolidation has resulted in a reduction of the number of major library
suppliers to five.
Supermarkets have entered the bookselling market in
earnest since the ending of the NBA, concentrating mainly on mass market
fiction; their market share is now estimated to be nearly 10 percent. High Street
multiples are performing less well. WH Smith was outperformed by Waterstone's,
which is also part of the group, and, following a failed takeover bid for the
group by Tim Waterstone, announced that it would be selling off Waterstone's in
1998.
Bookselling through the Internet, although still in its infancy,
is beginning to have an impact. A number of UK specialist chains have initiated
or relaunched their Web sites during 1997 to try and compete with US Internet
booksellers, such as Amazon.com and Barnes & Noble. The Publishers
Association has taken steps to try and protect UK publishers from the possible
importation of cheap US editions through the Internet.
Future growth of
the market is expected to be modest, with retail sales growing by 26.3 percent, to
just over £3.4bn, by the year 2002.
Text © 1998 Key Note
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Last updated by Duncan Nottage 5th March 1999