Quotulatiousness

January 14, 2023

More on the Barnes & Noble turnaround

Filed under: Books, Business, USA — Tags: , , , — Nicholas @ 05:00

In the latest SHuSH newsletter, Ken Whyte looks at the Barnes & Noble recovery story (discussed a couple of weeks back):

“Barnes & Noble Book Store” by JeepersMedia is licensed under CC BY 2.0 .

Back in 2018, the bookselling chain was losing $18 million a year. It had just fired 1,800 full-time employees. About 150 stores had been closed, leaving the company with 600. It had lost its fourth CEO in five years, this one to a sexual-harassment charge. The firm’s big digital initiative, the Nook e-reader, was a flop. The share price was down 80 percent.

Not only was the business failing: it was demoralized. As the writer Ted Gioia noted in a recent newsletter, B&N had lost faith in the public’s willingness to buy books from anyone but Amazon. Its leadership “shifted a huge portion of its floorspace to peddling toys, greeting cards, calendars, and various tchotchkes”. It doubled down on in-store cafes and even tried launching freestanding Barnes & Noble restaurants.

Just when it seemed B&N was certain to follow the path of its former competitor, the Borders chain, which closed in 2011, it was purchased for $638 million (US) by Elliott Advisors, a hedge fund.

SHuSH has been skeptical about the record of hedge funds in the cultural space. We are also skeptical of hedge funds in the retail space where they have a well-established record of buying chains, slashing costs, and driving them into the ground: Sears, Toys R Us, Payless Shoes, Radio Shack, Aeropostale, Sports Authority, etc.

Elliott Advisors is an exception.

The UK based-firm has a demonstrated commitment to bookselling (at least in the medium term — more on this later). It bought the Waterstones chain in 2018. Waterstones and its 283 stores had been rescued from near-bankruptcy in 2011 by lifelong bookseller James Daunt and a Russian backer. Elliott kept Daunt at the helm and a year later bought Barnes & Noble and added this second chain to his responsibilities.

Daunt acknowledged that Barnes & Noble was in rough shape when acquired by Elliott. Its stores were “crucifyingly boring”. But he was confident the chain could be turned around. There was no template or magic ingredient, he said. It was a simple matter of “running really nice bookshops”. To that end, he gives his stores unusual autonomy to develop their own personalities and tailor their stock to the interests of their communities.

Barnes & Noble stores have since dropped most of their crap: they no longer look like big-box flea markets. They’ve quit accepting payments from the major publishers to put their books on display, a practice that brought B&N revenue but left publishers in charge of what customers saw when they walked into stores. Local managers now decide how their books are presented based on what they think will appeal to their customers.

The company used the COVID lockdown to freshen up its dowdy stores. Managers were instructed to take every single book off the shelves and “weed out the rubbish”. Walls were painted, aged carpet replaced, furnishings upgraded. The result is a much improved browsing experience. Readers like to browse.

There were hard decisions, too. Daunt cut the B&N head office staff in half and shed about 5,000 of 30,000 employees.

All in all, it worked. Last spring, The New York Times reported that sales were up and costs were down at Barnes & Noble and that “the same people who for decades saw the superchain as a supervillain are celebrating its success. In the past, the book-selling empire, with 600 outposts across all 50 states, was seen by many readers, writers and book lovers as strong-arming publishers and gobbling up independent stores in its quest for market share … Today, virtually the entire publishing industry is rooting for Barnes & Noble — including most independent booksellers. Its unique role in the book ecosystem, where it helps readers discover new titles and publishers stay invested in physical stores, makes it an essential anchor in a world upended by online sales and a much larger player: Amazon.”

There are not a lot of reliable financial numbers available on Barnes & Noble because it is no longer a public company, but it reports that its 2021 sales in were up 3 percent over pre-pandemic times. Most importantly, sales of books were up 14 percent.

December 30, 2022

Barnes & Noble used to be like an even more boring Indigo … but they’ve been turned around

Filed under: Books, Business, USA — Tags: , , , , — Nicholas @ 05:00

Back when my job required more travel, one of the things I used to look forward to was visiting US bookstores, as they always had a wider and more interesting stock than our staid Canadian equivalents. Over time, the interesting local bookstores got harder and harder to find as the big box stores like Borders and Barnes & Noble took over much of their customer base. Of the two, I much preferred going into a Borders store, as they had better stock than B&N and the staff seemed friendlier and (generally) more helpful to clueless foreigners like me. Borders went under around the same time my business travels to the US tapered off and it looked like it was only a matter of time for B&N to follow it into bankruptcy. Even if it struggled on, surely the pandemic killed off what Amazon left behind? Ted Gioia says not so fast:

“Barnes & Noble Book Store” by JeepersMedia is licensed under CC BY 2.0 .

But Barnes & Noble is flourishing. After a long decline, the company is profitable and growing again — and last week announced plans to open 30 new stores. In some instances, they are taking over locations where Amazon tried (and failed) to operate bookstores.

Amazon seems invincible. So the idea that Barnes & Noble can succeed where its much larger competitor failed is hard to believe. But the turnaround at B&N is real. In many instances they have already re-opened in locations where they previously shut down.

Barnes & Noble tried exactly the same sort of “re-imagining” of their stores that Canada’s Indigo chain is currently floundering with: cutting back on the floorspace devoted to books in favour of throw cushions, candles, decorations, bath salts, scarfs and towels. It worked just as badly for B&N as it is working for Indigo: it chases out the primary customer base (book-buyers) in favour of bored people looking to waste away an hour or two just browsing tchotchkes. (And if you can find an Indigo staff member to ask about a particular book, they almost always assure you that you can find it on their website, which I’m sure helps bring more people into the store …) In desperation, B&N looked to expand into a very different market:

… in a bizarre strategic move, the company decided to launch freestanding restaurants under the name Barnes & Noble Kitchen — no books, just meals. But this was another disaster.

The company chairman Leonard Riggio eventually admitted, in September 2018, that running a restaurant is “a lot harder than you think it is … The bottom line is awful.”

Given the incredibly short and profitless life of most start-up restaurants, that really does qualify as a “No shit, Sherlock” moment. So how did Barnes & Noble turn things around?

It’s amazing how much difference a new boss can make.

I’ve seen that firsthand so many times. I now have a rule of thumb: “There is no substitute for good decisions at the top — and no remedy for stupid ones.”

It’s really that simple. When the CEO makes foolish blunders, all the wisdom and hard work of everyone else in the company is insufficient to compensate. You only fix these problems by starting at the top.

In the case of Barnes & Noble, the new boss was named James Daunt. And he had already turned around Waterstones, a struggling book retailing chain in Britain.

Bringing in fresh blood can be a life-saver for a business, but we also have that expression about deck chairs on the Titanic in common business parlance, so just being “new” isn’t enough … new leaders must also bring new approaches and fresh ideas:

But the most amazing thing Daunt did at Waterstones was this: He refused to take any promotional money from publishers.

This seemed stark raving mad. But Daunt had a reason. Publishers give you promotional money in exchange for purchase commitments and prominent placement — but once you take the cash, you’ve made your deal with the devil. You now must put stacks of the promoted books in the most visible parts of the store, and sell them like they’re the holy script of some new cure-all creed.

Those promoted books are the first things you see when you walk by the window. They welcome you when you step inside the front door. They wink at you again next to the checkout counter.

Leaked emails show ridiculous deals. Publishers give discounts and thousands of dollars in marketing support, but the store must buy a boatload of copies — even if the book sucks and demand is weak — and push them as aggressively as possible.

Publishers do this in order to force-feed a book on to the bestseller list, using the brute force of marketing money to drive sales. If you flog that bad boy ruthlessly enough, it might compensate for the inferiority of the book itself. Booksellers, for their part, sweep up the promo cash, and maybe even get a discount that allows them to under-price Amazon.

Everybody wins. Except maybe the reader.

Daunt refused to play this game. He wanted to put the best books in the window. He wanted to display the most exciting books by the front door. Even more amazing, he let the people working in the stores make these decisions.

This is James Daunt’s super power: He loves books.

“Staff are now in control of their own shops”, he explained. “Hopefully they’re enjoying their work more. They’re creating something very different in each store.”

This crazy strategy proved so successful at Waterstones, that returns fell almost to zero — 97% of the books placed on the shelves were purchased by customers. That’s an amazing figure in the book business.

On the basis of this success, Daunt was put in charge of Barnes & Noble in August 2019. But could he really bring that dinosaur, on the brink of extinction, back to life?

December 12, 2022

The “masher” in US towns and cities

Filed under: History, Liberty, USA — Tags: , , , , , , — Nicholas @ 03:00

Virginia Postrel wrote an article for the Wall Street Journal on how changes in US retailing in the late 19th century helped women achieve more equal status with men (non-paywalled here). Some interesting parts had to be cut for space reasons, so she’s posted them on her Substack:

As I write in the essay, urban department stores helped to liberate women:

    Urban shopping districts were where women claimed the right to dine outside their homes, walk unescorted and take public transportation without loss of reputation. Thousands of female sales clerks flowed out of stores in the evenings, when downtowns had previously been male territory. Department stores provided ladies’ rooms that gave women places to use the toilet and refresh their hair and clothing. They offered female-friendly tearooms. Directly and indirectly, modern shopping enlarged women’s public role.

But as “respectable” women claimed their right to public space, they also attracted unwanted male attention:

    It also made sexual harassment a more prominent issue. Men known as “mashers” gathered in shopping districts to ogle and chat up women. Some were no more than well-dressed flirts, violating Victorian norms in ways that few today would find objectionable. Many contented themselves with what an outraged clubwoman termed “merciless glances”. Others followed, catcalled and in some cases fondled women as they strolled between stores, paused to look in windows or waited for trams.

This cartoon from the October 30, 1902 New York Evening World gives some idea of the public outrage toward “mashers”, in this case on streetcars.

Mores were in flux. By old-fashioned standards, everything from a friendly smile or conversation starter to stalking and groping was an insult to a woman’s virtue. Newspapers launched anti-masher crusades and prominent women demanded stricter law enforcement and stern punishment.

    “No other feature of city life offers so many opportunities for making life a burden to the woman who for any reason must go about the city alone or with a woman companion,” opined the Chicago Tribune in 1907, leading a crusade against mashers. Outraged society ladies called for hard labor or public flogging as punishment. “Ogling is just as disgusting and offensive to a good woman as any other mode of attack,” declared the president of the Chicago Women’s Club.

    When the Chicago police chief suggested that women avoid harassment by staying home and limiting their time in stores, he was roundly denounced by prominent women, business interests and civic leaders. A clergyman declared it “humiliating … that the authorities responsible for the maintenance of public order should feel themselves compelled to refuse the right of the road to any of the city’s citizens.” Americans increasingly assumed that women deserved the same freedom as men to move about in public — a freedom in which retailers and their suppliers had a large economic stake.

But there’s a darker side to the story that didn’t make it into the essay’s published version. The crusade against mashers, while based on a real problem, had a strong element of moral panic.

In Chicago, where the police chief was soon out of office, police won the power to arrest vagrants, including mashers, without warrants and to seek punishment by hard labor rather than fines. Crusading newspapers didn’t give mashers a chance to defend themselves. Nor did they report on the wrongly accused. In the same era that society women were calling for mashers to be publicly whipped, lynching reached its peak — often sparked by the allegation of masher-type offenses that crossed color lines.

Giving police broad powers to arrest men who made shoppers uncomfortable was an extreme solution. (Many women declined to testify in court, so prosecutions were spotty.) It did help to make streets safer for women, but so did a shift in mores that more clearly distinguished between flirtation and assault.

July 5, 2022

Dijon mustard … made from Canadian and Ukrainian mustard seeds

Filed under: Cancon, Economics, Food, France — Tags: , , , — Nicholas @ 03:00

In the New English Review, Theodore Dalrymple explains why Europeans have been experiencing higher shelf prices and shortages for Dijon mustard recently, over and above the ordinary supply chain disruptions of the pandemic years we’ve all had to get used to:

Among myriad smaller consequences of that war is an acute mustard shortage in France. Mustard has all but disappeared from supermarket shelves, having first increased in price dramatically. This has surprised everyone who lazily assumed that Dijon mustard came from Dijon. Why should a war waged in Ukraine lead to the disappearance of mustard throughout France? After all, the famous brands, familiar to everyone, proudly announce on their labels that they are Dijon mustard. Can there be anything more French than Dijon mustard?

Perhaps the mustard is elaborated in Dijon, but the mustard seed, it turns out to everyone’s surprise, is imported from Canada and Ukraine. Apparently, Canada has seen a disastrous harvest of mustard seed, while there is no need to explain the shortage in Ukraine. Dijon mustard is about as local to Dijon as a modern soccer team is local to the city in which it has its stadium.

What is striking about this mustard crisis, unimportant except to those trying to make a proper vinaigrette or lapin à la moutarde, is its revelation of a perennial aspect of social psychology: namely, a resort to conspiracy theory. For some say that there is not really any mustard shortage at all — that mustard has disappeared from supermarket shelves because the supermarket chains are hoarding it, that they have a plentiful supply in their warehouses and will release it little by little, thereby profiteering by the resultant high prices. The war in Ukraine is only a pretext.

This is an old, indeed medieval, trope in times of shortage. There may well have been times, of course, when people really did hoard for the purposes of profiteering, but people rarely hoard something that is in abundant supply.

Yet many people require no evidence or proof to believe in the hoarding story. Does it not, after all, stand to reason? Do not merchants try to maximize their profits, and is hoarding not an easy way to do so? Practically all the mustard in France is sold in supermarkets — themselves a cartel that could easily agree to remove the product from the shelves. Surely no further evidence is needed.

May 12, 2022

Too many cannabis retailers? “… a scrappy band of politicians is coming together to save main street from the excesses of the free market”

Filed under: Business, Cancon, Government — Tags: , , , , , — Nicholas @ 03:00

Steve Lafleur points out that the temporary surplus of cannabis stores will inevitably self-correct, as most retail situations tend to do on their own without needing the “helpful” hand of government to intervene:

Lately there has been a moral panic brewing in Toronto about the number of marijuana stores in Toronto. Take this New York Times article, for example, which captures the mood with the quotes from various Torontonians. Or this BlogTO piece. And here is a link to a story about two city councilors (including my own) pushing for a moratorium on new pot shops.

At least on its face, the panic hasn’t been about the availability of cannabis products or any kind of (unsupported) claims about pot shops attracting crime. Rather, the concern is that there is simply an unsustainable number of shops that may be cannibalizing other retail opportunities. So a scrappy band of politicians is coming together to save main street from the excesses of the free market.

What could possibly go wrong?

The boom in pot shops is real. Legal marijuana retailing is a new phenomenon, and there has been a gold rush in the sector. This was first evident in financial markets during the 2018-19 weed stock boom (which went bust) as investors sought to capitalize on the rollout of legal marijuana sales in Canada. There are now nearly 2,000 pot shops in Ontario, and it’s not hard to find two on the same block. People aren’t wrong to point out that there has been a rapid buildout of marijuana retailers. Hence the push by City Council and now the Ontario Liberal Party, to restrict clustering of pot shops.

To be sure, new trends can push out old trends. And this can be frustrating. For instance, one insidious trend recently replaced two of my two favourite hole-in-the-wall restaurants: poke bowls. The trendy Hawaiian rice bowls have taken cities by storm. Businesses, understandably, want to capitalize on the trend. If people want it, businesses will sell it.

Trends can create dislocations. No one knows in advance how many poke restaurants — or pot shops — the market will bear, where they should locate, or what their operating hours should be. But through a process of trial and error, retailers and consumers will figure this out. And if it is just a flash in the pan trend, many will fail.

But that’s okay. That’s just the creative destruction of the market at work. It’s not always pretty, but it’s how we get new products and services. It’s a process. Sometimes the market rewards annoying things. But trying any effort to plan these things in a way that avoids over-saturation of short-lived trendy businesses would be rife with unintended consequences.

February 28, 2022

Hunting for books in the age of Amazon

Filed under: Books, Business, Technology — Tags: , , — Nicholas @ 03:00

In the latest SHuSH newsletter, Kenneth Whyte remembers book searches before the internet got commercial:

“Beat Ground Zero San Francisco 2014” by Mobilus In Mobili is licensed under

Back in the late twentieth century, I used to build my vacations around book searches. Before going to any new town, I’d make a list of new and used bookstores and hit the best of them during my stay. There was a genuine excitement about entering each store: you never knew what you were going to find, and you were acutely aware that at any moment you might see something you’d never seen before or something you might never see again.

It was especially the fear of blowing that one chance of acquiring something special that turned me into a book hoarder. (I was never disciplined enough to be a collector; I only bought for my own use). Over the years, I accumulated tens of thousands of books. I’d rummage through them, once or twice a decade, and throw out the ones that no longer interested me to make room for new acquisitions. There were always new acquisitions, whether I was traveling or not.

Then came the internet and suddenly the whole concept of book scarcity blew up. Amazon had every new title one could want. I still go to my favorite bookstores when I travel — Daunt’s in London, Prairie Lights in Iowa City, Three Lives & Co. in Manhattan (the world’s most perfect small bookstore), Politics & Prose in DC, City Lights in San Francisco, The Last Bookstore in LA (further below), to name a few. I make the visits (none in the past two years) in part out of a sense of nostalgia for the waning era of brick-and-mortar, and also because well-curated shops often suggest books I might otherwise overlook.

Looking for books on vacation was always one of my habits, and before Amazon came along, I’d carefully search for bookstores along the route we’d be driving during our holiday and I rarely came back without a few armfuls of books. These days, especially since the era of lockdowns began, book stores are mostly just a memory … which is just as well in some sense because I have no disposable cash to spend on fripperies any more.

Of Ken’s list of favourite stores, I’ve only visited City Lights in San Francisco, back in early 1991. It was, bar none, the busiest bookstore I’d ever been in in my life. It rather felt like a record store (remember those?) on a big album release weekend than a staid, stodgy bookstore.

The internet also allowed used bookstores to put their wares online, and Bookfinder.com came along to organize their inventories. Bookfinder.com is a meta-search portal that allows book shoppers to scan the inventories of 100,000 booksellers at once. Type in a title and it will cough up an array of purchasing options: new, used, good condition, poor condition, former library copy, first edition, signed, etc. You compare editions and prices, make your choice, and click through to the bookseller’s site to finalize your purchase.

Bookfinder was launched by a Berkeley student named Anirvan Chatterjee in 1997, just a couple of years after Amazon was born. Chatterjee sold out to AbeBooks in 2005.

AbeBooks is a Canadian tech success story, originally operated out of Victoria by Rick & Vivian Pura and Keith & Cathy Waters. It is a digital marketplace that allows you to search the stock of a wide variety of established retailers. What differentiates it from Bookfinder is that you make your purchase right on the AbeBooks site. AbeBooks also sells the books it represents on other platforms, including eBay, Barnes & Noble, and Amazon. AbeBooks, in short, is a retail business while Bookfinder is a search tool.

AbeBooks was a dangerous discovery for me, and I bought a lot of books through them for a couple of years after discovering the service. Today, of course, not so much, especially as the shipping charges frequently run higher than the initial purchase price of the books themselves. Initially an independent service, AbeBooks is now owned by Amazon.

These days a lot of people want to shop for books anywhere but Amazon or its subsidiaries. For a non-Amazon version of AbeBooks you might try Alibris, founded by Martin Manley in California in 1997 (it’s been passed around to a range of venture capitalists and holding companies and is now in the hands of private investors). Biblio.com is another marketplace, serving mostly collectors. For non-Amazon alternatives to Bookfinder, viaLibri is a slick search tool that I only recently discovered, although it’s not quite as comprehensive as Bookfinder. Bookgilt is a good meta-search site for antiquarian and rare books. For new books, the best alternative to Bezos is your local bookstore, which can get you almost anything you need. See the map at the very bottom of this page or go to Bookshop.org or Indiebound.org. Or you can visit one of the chains, Chapters/Indigo or Barnes & Noble.

I still start most of my used book searches on Bookfinder. It’s old technology, Web 1.0, as hopelessly dated as the Drudge Report, but it works. I find it easy to navigate and it offers far more listings (and more information on each listing) than Amazon. I order from its smaller independents whenever practicable, although it’s often difficult to know exactly who you’re ordering from because the smaller shops are frequently represented on Bookfinder by their resellers, AbeBooks, Alibris, Amazon, and Biblio.

January 30, 2022

“I stand corrected. All retail sucks, not just book retail”

Filed under: Books, Business, Economics — Tags: , — Nicholas @ 03:00

Following up to the issue of book store-to-publisher returns last week (here), Kenneth Whyte discovered that other retailers are not that different from the book business after all:

“Indigo Books and Music” by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

Last week I wrote about the horrible, wasteful publishing-wide policy of booksellers returning unsold books for full refunds rather than putting them on sale. Some 30 percent of books in stores are sent back to publishers who bury, pulp, or remainder them. I compared this practice to other retail sectors:

    If I were in the ugly sweater business, I’d sell 500 ugly sweaters to Saks at $200-a-piece. Saks pays me 500x$200=$100,000, marks the ugly sweaters up to $500, and lays them out on tidy glass shelves under track lighting. Whatever is left after the Christmas season is marked down to half price on crowded sales racks. If Saks still has some ugly sweaters in January, it will ship them to the outlet store where they’re offered at still greater discounts.

Our friend, author and regular SHuSH reader Ken McGoogan, sent my comments to a mature student he teaches. She comes from the fashion industry and says it’s not so simple:

    The reality is, if Saks cannot sell that ugly sweater, they will ask for mark-down money from the brand (the wholesaler) who sold them that ugly sweater. If the brand is not willing to give Saks that mark-down money, they will never carry anything from the brand again. Is mark-down money better than returns? Honestly, it’s not that much better. The amount of the mark-down money is an often shocking figure. And this is not just for Saks, all big retailers do it, without exception.

    Barnes & Noble or Chapters are just like department stores. The business model is the same. The only thing is, if the readers found out how much waste the book returns are generating every year, it’ll be a big turn off for the customers. They’d rather force themselves to read e-books or audio books than be part of the wasteful culture. Especially for the younger generation, they are buying less garments because of the fashion industry’s wasteful level. Fyi, a lot of new clothes and unsold inventories are burned every year as they are running out of storage spaces.

I stand corrected. All retail sucks, not just book retail. And the book industry had better sort this out before the aforementioned younger generation begins to focus on it.

January 23, 2022

The oddity of the bookselling business

Filed under: Books, Business, Economics — Tags: , , — Nicholas @ 03:00

Unlike so many other retail operations, book stores have a different sales cycle because they can generally return unsold books (in good condition) to the publisher for a full refund. This means that 30% or more of the books on the shelf at Christmas will be shipped back to the publisher early in the new year, only to appear again on the discount shelves a year or two later for a fraction of the original retail price (and often in rather worse shape for all the additional handling). In the latest SHuSH newsletter, Kennethy Whyte calls this the worst problem in book publishing:

“Indigo Books and Music” by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

Book publishing doesn’t work like most other retail businesses. If I were in the ugly sweater business, I’d sell 500 ugly sweaters to Saks at $200-a-piece. Saks pays me 500x$200=$100,000, marks the ugly sweaters up to $500, and lays them out on tidy glass shelves under track lighting. Whatever is left after the Christmas season is marked down to half price on crowded sales racks. If Saks still has some ugly sweaters in January, it will ship them to the outlet store where they’re offered at still greater discounts.

What happens to them if they don’t sell at the outlet doesn’t interest me because I’ve got my $100,000. If Saks ordered far too many ugly sweaters, that’s Saks’ problem.

In the book world, I sell 1,000 copies of a book to a retail chain like Barnes & Indigo for $15-a-piece, half the retail price. Barnes & Indigo pays me 1,000x$15=$15,000 and maybe puts some of the books on a front table, or maybe buries them on a bottom shelf in the darkest corner of the store. I might sell a two hundred, four hundred, or six hundred copies.

Let’s be generous and say 600 sell at Barnes & Indigo through the autumn and over the holidays. Come January, the store doesn’t put the remaining stock on sale: it packs up the unsold 400 and ships them back to me for a full refund. The 400 returns, or at least those of them that aren’t crumpled or coffee-stained, go back into the warehouse, which charges me fees to process the returns and more fees to store them. Sometime later, I get a notice of the returns and regret that extra glass of wine I ordered at dinner the night I thought I sold Barnes & Indigo $15,000 worth of books when, in fact, I only sold $9,000 worth of books, perhaps leaving me under-water on that particular title. I also regret boasting of the $15,000 sale to the author, who probably did some royalty math in his head and thought he was getting 40% more than he’ll actually receive.

Returns at publishing houses run somewhere between 25% and 30% annually, across all titles. That’s despite Amazon with its ruthlessly efficient algorithms seldom buying many more copies than it needs, and despite ebooks and audiobooks (which amount to a quarter of sales for many publishers) having almost zero returns.

Millions of books are returned to publishers at this time of year. Sales are slower in January and February, so bookstores hurriedly return all their remaining holiday-season stock and whatever else hasn’t moved to keep themselves in cash. Some of the returns go back into storage. Eventually, most are remaindered, or pulped, or buried. It’s a colossal waste of paper and ink, a headache in terms of shipping/handling/accounting, and dispiriting as heck. You might think you had a great year, hit all your sales targets, exceeded them, even, and then in about the third week of January begins the drip drip drip of returns, and it continues steadily through March. That’s if you’re lucky and it’s drips, not waves. And while the returns are concentrated in the first quarter, your books are returnable year-round, so even a pleasant summer afternoon can be ruined by the unexpected arrival of a pallet of unwanted stock.

December 26, 2021

QotD: Boxing Week Sales

Filed under: Business, Humour, Quotations — Tags: , — Nicholas @ 01:00

I’ve done a few tours of duty behind a cash register. The job takes your soul, twists it like a wet chamois and runs it through the shredders they use to turn car hoods into tinfoil strips. […] When I lived out east, the relationship between cashier and customer was the same as that between a German gunner and the troops disembarking at Normandy.

James Lileks, “Backfence: Beyond new store’s hype, genuine smiles”, Minneapolis Star Tribune, 2004-08-03.

August 14, 2021

Great Moments in Unintended Consequences (Vol. 3)

Filed under: Britain, Cancon, Government, Health, Humour, USA — Tags: , , , , , — Nicholas @ 02:00

ReasonTV
Published 7 May 2021

Good intentions, bad results.

——————
Follow us on Twitter: https://twitter.com/reason​

Reason is the planet’s leading source of news, politics, and culture from a libertarian perspective. Go to reason.com for a point of view you won’t get from legacy media and old left-right opinion magazines.
—————-

Window Wealth
The Year: 1696
The Problem: Britain needs money.

The Solution: Tax windows! A residence’s number of windows increases with relative wealth and is easily observed and verified from afar. A perfect revenue generator is born!

Sounds like a great idea! With the best of intentions. What could possibly go wrong?

To avoid higher taxes, houses were built with fewer windows, and existing windows were bricked up. Tenements were charged as single dwellings, putting them in a higher tax bracket, which then led to rising rents or windowless apartments. The lack of ventilation and sunlight led to greater disease prevalence, stunted growth, and one rather irate Charles Dickens.

It took more than 150 years for politicians to see the error of their ways — perhaps because their view was blocked by bricks.

Loonie Ladies
The Year: 1992
The Problem: Nude dancing is degrading to women and ruining the moral fabric of Alberta, Canada.

The Solution: Establish a one-meter buffer zone between patrons and dancers.

Sounds like total buzzkill! With puritanical intentions. What could possibly go wrong?

It turns out that dancers earn most of their money in the form of tips, and dollar bills don’t fly through the air very well. Thus, the measure designed to protect dancers from degrading treatment resulted in “the loonie toss” — a creepy ritual where naked women are pelted with Canadian one-dollar coins, which are known as loonies.

Way to make the ladies feel special, Alberta.

Gallant Grocers
The Year: 2021
The Problem: Local bureaucrats need to look like they care.

The Solution: Mandate that grocery stores provide “hero pay” to their workers.

Sounds like a great idea! With the best of intentions. What could possibly go wrong?

Besides the fact that these ordinances may preempt federal labor and equal protection laws, a 28 percent pay raise for employees can be catastrophic to grocery stores that traditionally operate on razor-thin margins. As a result, many underperforming stores closed, resulting in a “hero pay” of sudden unemployment.

Don’t spend it all in one place!

Written and produced by Meredith and Austin Bragg; narrated by Austin Bragg

April 29, 2021

QotD: Searching for useful reading lights

Filed under: Books, Humour, Quotations — Tags: , — Nicholas @ 01:00

The room, in addition to its other drawbacks, was always underlit. But it’s proving a major challenge to find nifty lamps that also give enough light to read by. All the cool Art Nouveau sort of stuff only go up to 60 watts max, which, for a reader, is like switching on the darks. And the lamps in stores are not logically arranged by wattage; one has to wander about turning them upside down and peering at the little sticky labels on the sockets for a clue, for yea verily, the sales staff has none. They are not readers either, sigh.

Lois McMaster Bujold, letter to Baen’s Bar, 2004-10.

March 21, 2021

The two Britains, gastronomically speaking

Filed under: Britain, Food, Health — Tags: , , , , , — Nicholas @ 05:00

Theodore Dalrymple on the British diet (at least before the neverending lockdowns):

“The Joy of Cookbooks” by shoutabyss is licensed under CC BY 2.0

As in many other things, the population has divided into two: those with increasingly refined tastes in gastronomy, and those who eat mainly junk and takeaway food for the quickest but also crudest possible gratification.

Gastronomy often seems the only aesthetic sphere in which the modern British display any real interest. Their dress, their music, their art (or at least such as gains any publicity), their literature, and of course their architecture, are hideously ugly, even militantly so, but a Michelin-starred restaurant receives their adulation — or did in the now-distant days when restaurants were open.

But the modern interest in food is not the same as a mass market for fish, which has, alas, mainly to be cooked, and the fact is that the British are, grosso modo, too lazy and ignorant to cook properly. Many millions of them would be horrified by the sight of a whole fish, or even any part of a raw fish: they don’t want to eat anything that hasn’t been through a complex industrial process, had chemicals and preservatives added to it, and cannot be just stuck in a microwave for a few minutes before consumption in front of the television. Besides, they wouldn’t know what to do with a fish, let alone a crustacean.

It is said that about a fifth of British children do not eat a meal with another member of their household (family would, perhaps, be a misleading term) more than once a fortnight, turning meals into asocial and even furtive occasions. Many households do not have a dining table, and in my visiting days as a doctor I discovered that the microwave is often a household’s entire batterie de cuisine.

This slovenly and asocial approach to eating — evident in the detritus left behind in British streets as people eat wherever they happen to be, in their cars, walking along, in trains and buses, in fact anywhere but a dining room and with others — is not the consequence of poverty, but of a degraded style of life.

Many years ago I noticed that shops in poor areas where there were many immigrants of Indian origin had enormous piles of a vast array of vegetables so cheap that the problem was carrying them home rather than their cost. I would see Indian housewives selecting their purchases with care and attention: the quality and not just the price mattered to them. Uncompelled by economic necessity to shop there, I would nevertheless do so; but I never saw poor whites doing so. The problem with all those vegetables was that they required cooking, preferably with skill, which very few poor whites, as against poor Indians, had. And this is a cultural problem, if the taste for and consumption of a diet of junk food (what the French more vividly call malbouffe) is a problem.

The Indians are fat, with bad health consequences, from eating too much good food; the native British, with bad health consequences, from eating too much bad food. The prevalence of obesity in Britain, greater than in most other European countries, is possibly one of the reasons that its death rate from COVID-19 is so high, among the highest if not actually the highest. And this obesity is immediately obvious on arrival in Britain from any European country.

March 15, 2021

Target is careful to only cite economic reasons for abandoning their downtown Minneapolis headquarters

Filed under: Business, Economics, USA — Tags: , , , — Nicholas @ 03:00

Jon Miltimore explains why the Target corporate headquarters in Minneapolis will be given up — for reasons that go beyond the claimed success of the telecommuting encouraged by the 2020 pandemic lockdowns:

A building burning in Minneapolis following the death of George Floyd.
Photo by Hungryogrephotos via Wikipedia.

Target Corporation, the eighth largest retailer in the United States, announced in an email to employees on Thursday that it will be leaving the City Center, its primary downtown Minneapolis location.

Company officials cited improved remote work opportunities and less need for space as the drivers for the decision.

“In just one year we’ve proven that we can drive incredible results, together, from our kitchens and basements and living rooms,” said Melissa Kremer, executive vice president and leader of Target’s human resources operations.

Target, the largest employer in Minneapolis with some 8,500 corporate workers, says the 3,500 employees who work at the City Center will still have a “home base,” but it will be at another Minneapolis location or in the nearby suburb of Brooklyn Park.

A Story of Capital Flight?

On one hand, there is little reason to doubt Target’s explanation for abandoning its headquarters. Many anticipated that the pandemic would lead to a normalization of remote work.

“The future of work will be distributed,” Erica Brescia, the chief operating officer of Github, told the BBC last fall. “We’re going to see a big shift from office by default to remote by default.”

Part of that shift, it’s reasonable to assume, would be corporations moving away from high-end corporate real estate. Yet it also shouldn’t be forgotten (or ignored) that Target’s decision comes less than a year after Minneapolis suffered some of the worst riots in US history, prompted by the May 25 death of George Floyd.

The riots — which broke out after a video went viral showing police pinning Floyd, a 46-year-old black man, to the ground for nearly nine minutes before he died — caused an estimated $2 billion in damage.

Though Target made no mention of the riots in its announcement, last summer I noted that an abundance of evidence suggested that the economic damage of the riots would persist long after the wreckage had cleared.

February 19, 2021

QotD: The disillusionment of working in a bookshop

Filed under: Books, Britain, Business, Quotations — Tags: , , , — Nicholas @ 01:00

For the better part of 2006, while studying for a master’s degree, I worked part-time in a branch of Waterstone’s, in *REDACTED*, the county capital of *REDACTED*.

I got the interview by stating openly in my covering letter that I was 24, still living with my mum, and asking her for train-fare had become a bit undignified. This seemed encouraging. But then the panel (2 pax.) asked what I was reading currently, and I said Sam Harris’s The End of Faith, and there was awkward silence. This set the tone for almost every “literary” chat thereafter.

Call me an idiot, but I was genuinely stunned to find we weren’t allowed to read on the job. Instead, booksellers had to devote any time not spent actually dealing with customers (which on a rainy weekend, in the wrong bit of the shop, could be a lot) with often-fruitless searches for books which had been lost, mis-shelved, or maybe stolen, or because they had to be returned to publishers (another surprise), and at the publisher’s expense.

I also quickly realised that the layout of the shop was not an accident (even in the jury-rigged “commercial” buildings of many an English town centre), and that the unadvertised steering of a customer around a bookshop was near-identical to how the algorithms work in the online equivalents (or vice versa, probably). If you like Poetry, you’re more likely to also like Philosophy, (right here on the next set of shelves), or Music (by the window), or History books (just across the room there), than if you came in looking for the latest Jeffrey Archer novel (downstairs, on the pile-’em-high islands).

Most of the time, I was just moving “stock” about, taking maddening credit card orders over the phone, or walking people literally to alphabetised mass-market fiction. All of which required no interest in, let alone knowledge of, literature. To a middle-class nerd such as myself, discovering that working in a bookshop [cue poetic images of James Frain, or similar] was fundamentally no different from working in a Sports Direct or Tesco was about the most depressing thing imaginable. That, and waiting for the Sunday trains in winter.

A.S.H. Smyth, “Seven kinds of people you find in bookshops”, The Critic, 2020-11-14.

December 23, 2020

No, Console Scalpers Aren’t Ruining Christmas

Filed under: Business, Economics, Gaming, Media — Tags: , , , — Nicholas @ 04:00

Foundation for Economic Education
Published 22 Dec 2020

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As we enter peak holiday season, most people have their shopping done by now, but as always, many are scrambling last-minute for their purchases. And if you aren’t one of those early-birds fortunate enough to procure a PS5 or Xbox Series X, you can guarantee that you won’t be able to find one unless you’re willing to pay $1,200 to a scalper.

Many are understandably frustrated. How is it fair for people to buy up the consoles at $500 and sell for nearly double or triple the cost? “There ought to be a law” against that kind of thing — right?

Well, in short, there’s nothing wrong with scalping — and a few economic lessons will help explain why.

Scarcity is real and so is time-preference. Scalpers (and even bots) show that demand for some goods is so high that people are willing to pay several times the list price — which could provide a lot of information to Sony and Microsoft on how many consoles to produce and in what parts of the world. They could factor that information into the future, so there would be less problems with availability, but most retailers make this information exchange impossible.

______________________________
CREDITS:

Produced by Sean W. Malone
Written by Jen Maffessanti & Sean W. Malone
Edited by Paul Nelson
Asst. Edited by Jason Reinhardt

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