Message on the eve of Book Expo America, 2008

As we head into the Book Expo America convention in Los Angeles this week, recent press reports about the possible acquisition of Borders Group, Inc. by Barnes and Noble has fueled fires of speculation. If federal authorities allow the sale to go through, and if shareholders of both companies agree to it, the bookstore landscape in the United States could be forever altered. Is this ultimately a bad thing? It would not be as bad if BGI were to declare bankruptcy and effectively go out of business. In that event many publishers across the country would be inundated with returns from them, and BGI’s ability to return books is legion. So if there were to be a merger of B&N and BGI that would create one colossal account, and while this would be awkward, it would simply be another blip in the big box retail landscape, with bookstores joining hardware stores, drug stores, pet stores and grocery stores in having huge national retail brands.

This occurrence would actually be a good opportunity for smaller regional chains and independent store owners across the country. Big box retailers cannot be all things to all people, and the establishment of one giant bookstore chain across the country will have wide-ranging cultural repercussions. Given the idea that having a bookstore is the ultimate form of self-expression for people, bookstores of all kinds would be able to continue concentrating on customer service, reach out to local readers, and become important destinations in their communities. They could strengthen their core businesses while the two behemoths struggle with their acquisition and with pleasing their stock holders. The rising price of gasoline may be another factor for people to shop closer to where they live, and not getting into the car to motor to free-standing shopping centers, where many big box retailers have their locations.

The various fortunes of super-sized bookstores in the marketplace is always a fascinating thing to watch, but too much of a good thing can be counterproductive. A B&N-BGI amalgamation could easily backfire and cancel itself out. Meanwhile, the market for books in the United States would proceed abated.