THE Australian consumer’s love affair with online shopping has finally caught up with the old world of traditional bookselling, as Borders and the 125-year-old Angus & Robertson chain were placed into voluntary administration last night.

The failure of the group, which also owns New Zealand’s Whitcoulls outlets of books and stationery stores, puts in doubt more than 2500 jobs on both sides of the Tasman and will rattle the confidence of bookshop owners up and down the country.

With their large-store format, staff and massive overheads, bookshops such as Borders have been undercut by vastly cheaper books and DVDs sold on the internet, especially from sites in the United States which can deliver discounts of up to 50 per cent to Australian shoppers. (more…)

With REDgroup Retail entering into voluntary administration last week, RetailBiz caught up with book chain Dymocks’ CEO Don Grover to see whether they were feeling the pressure of online shopping.

“We’re no where near it,” Grover said.

“No doubt retailers are finding the current retail environment tough and online shopping is posing a challenge, but we’re in a strong financial position and have been for the last 130 years and there is certainly opportunity to remain in the sector; it’s just about supply the books that customers want.” (more…)

ONE day it will be taught in economics courses as proof of the futility of protection. In 2009, the federal cabinet rejected a Productivity Commission report that recommended an opening of the Australian book market.

All the economic ministers argued for reform. It was defeated narrowly. As a result, your local bookshop was banned from importing books and selling them at lower prices, thus competing with online retailing.

On Thursday, the country’s largest bookstore chain, Angus & Robertson, and Borders bookstores were placed in voluntary administration. They cited this policy as one of the reasons.

In other words, to protect 300 jobs in one manufacturing plant, the federal government decision helped cause the loss of 2500 jobs in the retail sector. The old story. Protectionism plugs a gap. But in the end you see a net loss.

Now the challenge is for federal cabinet to move urgently to free up the market and let Australians walk into bookshops and buy books at prices closer to those they can get online. After all, banning bookshops from sourcing from overseas is costing book buyers $250 million a year. (more…)

On the case for cheaper books
The Forum: Bob Carr
From: The Australian
December 13, 2008
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Freeing up the books market is good news for readers
by Don Grover – CEO Dymocks Group of Companies
17th July, 2009
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Publishers’ profits need to be brought to book
by Allan Fels
November 12, 2009
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Australians deserve access to cheaper books
by Michael Wilding
July 17, 2009
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Low prices open fresh chapter for readers
by Bob Carr
July 15, 2009
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Local readers forgotten in battle over books
by Allan Fels and Fred Brenchley
February 16, 2009
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Well known australian writer and political commentator, Ross Fitzgerald claims ‘the price is wrong’
Sep 24, 2009
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A letter from Dick Smith AO, former Australian of the year, entrepreneur, founder of Australian Geographic, Dick Smith Electronics and Dick Smith Foods
Nov 2, 2009
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Canberra needs spine on books issue
From The Australian
August 31, 2009
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Read and listen to some of the recent media coverage on our National broadcaster, ABC.

ABC’s PM programme with Mark Colvin

and

two pieces in Art News – one and two

Read the various articles and opinion pieces from Australian media:

SMH Business

The Australian Politics

The Australian Opinion

The former federal Treasure, Peter Costello responds to other opinions and has his say (taken from the Sydney Morning Herald).

Here is the statement released by the Innovation Minister, the Hon Dr Craig Emerson MP.

11 Nov 2009

REGULATORY REGIME FOR BOOKS TO REMAIN UNCHANGED

The Government has decided not to change the Australian regulatory regime for books introduced by the previous Labor government.

Australian book printing and publishing is under strong competitive pressure from international online booksellers such as Amazon and The Book Depository and the Government has formed the view that that this pressure is likely to intensify. In addition, the technology of electronic books (e-books) like Kindle Books will continue to improve with further innovations and price reductions expected.

The Government has not accepted the Productivity Commission’s recommendation to remove the parallel importation restrictions on books.

(more…)

The Coalition for Cheaper Books said it would step up its campaign to scrap unfair import restrictions on books after the Federal Government’s decision today not to reform the system which keeps book prices high.

Coalition member and Dymocks Chief Executive Officer, Don Grover, said Cabinet’s decision to ignore a recommendation from its main economic adviser the Productivity Commission to scrap the unfair restrictions would threaten more than 3000 jobs at local bookshops.

“More and more booklovers will be forced to buy cheaper books online as so-called local publishers – most owned by multinationals – continue to inflate prices by more than a third for Australian consumers,” he said.

“The growth of sales to offshore internet sellers increased by 20 per cent last year and is continuing to grow.

“The Federal Government has said that it is ok for consumers to buy cheaper books from the internet, but not Australian bookshops. This is unsustainable. It’s only a matter of time before jobs are lost.”

(more…)