Supply chain | Booksellers fear stockouts

(Toronto) When COVID-19 lockdowns forced bookstores across the country to close last year, Dundurn Press president and editor Scott Fraser feared the crisis could deal a fatal blow to his company, one of Canada’s largest independent publishing houses.



Adina bresge
The Canadian Press

Since then, the Toronto publisher’s sales have rebounded, as many Canadians appear to have emerged from lockdowns with a renewed love for reading, Fraser said.

Today, however, the Canadian literary sector faces a new threat that has raised fears among publishers and booksellers that they will not be able to sell the best titles during the crucial holiday season: supply chain disruptions.

“Going back 12 to 18 months, and I think I’m probably not the only person looking back like that, it wasn’t clear the company was going to get away with it,” Fraser said. .

“Now that we’re out of it […] a major downside, to put it simply, is that we end up with this supply management problem that takes precedence over our efforts to get to market, promote and sell these books. “

As supply chain issues wreak havoc in the global economy, the situation poses particular risks for the slow, unstable and increasingly conglomerated Canadian book industry, say industry players and organizations. analysts.

“This really is the perfect storm for supply chain concerns,” observed Kate Edwards, Executive Director of the Association of Canadian Publishers. “These disruptions affect the industry at all levels. “

Several factors of crisis

The problem begins with a global paper shortage, which, along with the growing demand for adhesives and ink, has made the process of producing books more expensive and more complicated, Mr.me Edwards.

The scarcity of raw materials has, in turn, caused congestion among book printers, she continued, forcing publishers to compete with each other for printing time, at premium prices.

In addition, obstacles continue to accumulate on the distribution side, added Mr.me Edwards, as shortages of workers, shipping containers and storage space are causing delivery delays.

These new glitches come just as the Canadian book industry seemed poised to recover, sales data suggests.

According to BookNet Canada, an agency that tracks publishing trends, national print sales totaled nearly $ 464 million in the first six months of 2021, an increase of about 11%, or 47 million. $, compared to the same period in 2020.

These gains put the market on track to establish itself near its pre-pandemic levels. But that momentum could be undermined by supply chain issues at a peak time of year for book purchases, observed Steven Beattie, literary critic and author.

The months leading up to the holidays are when book companies make a significant portion of their profits, as literary rewards and the festive spirit rekindle interest in reading, said Beattie, who writes on the publishing industry on his blog, Shakespearean Rag.

Publishers and retailers fear they won’t be able to meet demand for titles that are high on readers’ wish lists, according to Beattie.

“There is a lot of very delicate back-and-forth between booksellers, distributors and publishers trying to figure out what the optimal level of stock is at this point, to make sure you have enough, but not too much. . “

There is a particularly strong fear in relation to books which are not supposed to be big sellers, but which are carried by a ” buzz literary ”which makes them climb the list of best-selling books.

Mr. Fraser says that Dundurn Press was confronted with this double-edged sword when The Son of the House, de Cheluchi Onyemelukwe-Onuobia found itself on the shortlist for the prestigious Giller Prize last month.

Normally, the publisher would reprint the book in a large run all at once for a wholesale discount, Fraser said. But several printers are full and the publisher has had to fall back on several smaller prints from at least four different printers, at a higher unit cost.

Competition among retailers

It has also become more difficult to anticipate the size of first runs, as consolidation in the book industry has given large retailers more leeway to place their orders on dates closer to the date of publication, Mr. Fraser.

In some cases, this has put Dundurn Press in unfortunate catching-up positions, at times when some new releases were successful, he said. He says that a book even ended up out of stock on Amazon before it even hit the shelves of bookstores.

For authors, he explains, these missed opportunities can be devastating. “It’s a major source of anxiety, since they don’t get paid if the books don’t sell. “

Chris Hall, president of the Canadian Association of Independent Booksellers, said many retailers have decided to stock up ahead this year, rather than risk running out of the season’s must-haves.

The co-owner of McNally Robinson, which has branches in Winnipeg and Saskatoon, said that at about six weeks into Christmas, the bookseller’s worst fears had not materialized. Stores are even busier than usual, Hall continued, and he remains on “high alert” for stockouts.

While independent bookstores can’t match the purchasing power of big box retailers, they have another kind of competitive advantage: customer relationships, Hall said.

He recommends that readers do their shopping in advance if they have specific titles to heart. But even if their top pick is sold out, Hall pointed out, staff at local bookstores will be happy to provide them with an alternative recommendation.

“We are going to have a store full of good books throughout the Christmas season,” he said. “However, some titles may not be available. “

However, Mme Edwards warned that problems with the book’s supply chain appeared to be a challenge that could linger beyond the holiday season. Several of these glitches existed before the pandemic, she noted, and the industry must adapt as the literary landscape continues to change.

“This will not be resolved in 2022 or maybe even in 2023,” said Mme Edwards. “Everyone needs to be flexible and strategic, and be able to adjust to the unexpected. “


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