Broken binding: The industry will suffer as online competition and consumer preferences toward e-readers persists

The Book Stores industry has steadily declined over the five years to 2018 amid high competition from online retailers and e-books. Slow growth in per capita disposable income and consumer confidence, as well as changing consumer preferences, have hindered the industry. Over the five years to 2023, the industry is forecast to continue declining, albeit at a slightly slower pace. Despite rising per capita disposable income and consumer confidence in the strengthening economy, changing consumer shopping preferences and limited leisure time for activities like reading books will lead to further drops in revenue...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
-0.1%
Forecast Growth 18-23
Profit
Employment
12,886
Businesses
1,222
Market Share of Companies

Industry Threats & Opportunities

  • Changing consumer shopping preferences and limited leisure time will continue to hinder revenue
  • Events with popular authors have aided increasing store traffic volumes
  • To remain competitive in the industry, smaller operators are expected to create niche markets
  • Industry Report - Starting a New Business Chapter

    Potential entrants to the Book Stores industry in Canada will experience moderate barriers to entry. With high competition in the industry, companies need to create niche markets or operate on a large scale to offer low prices and differentiate themselves from other operators. Moreover, the largest players have significant numbers of stores, established brands and customer awareness, which serve to increase their market concentration and make it more difficult for smaller operators to enter the industry. Larger companies also have pre-existing distribution networks with suppliers, posing a potential barrier for new players.The initial capital costs of establishing a new book store are also significant. Pro...purchase to read more.

    Additional Insights for the Book Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Book Stores Industry are

  • Proximity to key markets
  • Ability to control stock on hand
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Demand from e-commerce and online auctions in the Book Stores industry impact industry performance..

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    What's in this report

    What is the Book Stores Industry?

    Companies in this industry retail a broad range of book and newspaper merchandise, including trade books, textbooks, magazines, paperbacks and religious books. These goods are purchased from domestic (and in some cases international) manufacturers and wholesalers. Operators then retail these goods through their stores to the general public. This industry excludes retailers that operate primarily as used merchandise stores or electronic shopping and mail-order houses.

    Industry Products
  • Textbooks
  • Trade books
  • Other books
  • Electronics, games and other goods
  • Paper products
  • Magazines and newspapers
  • Industry Activities
  • Retailing new books (including e-books)
  • Retailing magazines and other periodicals
  • Retailing newspapers
  • Retailing other related products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Demand from e-commerce and online auctions
  • Leisure time
  • Number of fixed broadband connections

  • Current Performance
  • Growing competition
  • Evolving nature of industry establishments
  • Mergers and closings
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer conditions and demand
  • Competition, technology and changing demand
  • Paper cuts
  • Table: Book Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Book Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Public Schools in Canada
  • Private Schools in Canada
  • Colleges & Universities in Canada
  • For-Profit Universities in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Book Publishing in Canada
  • Greeting Cards & Other Publishing in Canada
  • Magazine & Periodical Publishing in Canada
  • Newspaper Publishing in Canada
  • Printing in Canada
  • Printing Services in Canada

  • Products & Services
  • Textbooks
  • Trade books
  • Electronics, games and other goods
  • Other books
  • Paper products
  • Magazines and newspapers
  • Chart: Book Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Book Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Book Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Book Stores Industry

  • Industry Globalization
    Indigo Books & Music Inc.,
  • Table: Indigo Books & Music Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Book Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Book Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    E-Book
  • An electronic version of a book that can be downloaded to a portable electronic device or a computer.
  • E-Reader
  • A portable electronic device that enables users to purchase, download and read books and other publications.
  • Electronic Data Interchange (Edi)
  • The transmission of electronic documents between businesses from one computer system to another.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Book Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Book Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Book Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Book Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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