I was listening to a radio interview on Friday about Boarders and Angus & Robertson. There were a number of ex-fanchiseees that said the problem wasn't the industry or market or legislation favouring o/s or online trading...it was just that these chains had a s#!th@use business model.
One ex-fanchisee is now running a successful private book shop in the same spot where he had a failing Angus & Robertson store just a year earlier. He said K-Mart and Target routinely sell "front stock" (new titles) for 25-50% , so all the trade went there for new books. Whereas 60% of the demand in his store was for "back stock" older titles which the fanchise made it difficult order. He added that they centrally ordered books based on American tastes, not Aussie demand and could barely order for 1 store let alone over 100.
This guy went out on his own as a specialty store ordering what the people wanted and was thriving.
Moreover, another fanchisee added that the boarders model was too chaotic, based on paying exorbitant commercial rents and then putting coffee shops and all sorts of other 'faff' in the store so no one really knew what the core business was anymore.
Boarders and A&R essentially just filled a neiche' no one really wanted. The slack had been taken up by the chain stores selling new titles and the smaller specialty shops selling back order titles.
One ex-fanchisee is now running a successful private book shop in the same spot where he had a failing Angus & Robertson store just a year earlier. He said K-Mart and Target routinely sell "front stock" (new titles) for 25-50% , so all the trade went there for new books. Whereas 60% of the demand in his store was for "back stock" older titles which the fanchise made it difficult order. He added that they centrally ordered books based on American tastes, not Aussie demand and could barely order for 1 store let alone over 100.
This guy went out on his own as a specialty store ordering what the people wanted and was thriving.
Moreover, another fanchisee added that the boarders model was too chaotic, based on paying exorbitant commercial rents and then putting coffee shops and all sorts of other 'faff' in the store so no one really knew what the core business was anymore.
Boarders and A&R essentially just filled a neiche' no one really wanted. The slack had been taken up by the chain stores selling new titles and the smaller specialty shops selling back order titles.