Australian booksellers have dismissed Small Business Minister Nick Sherry’s prediction that most bookstores are doomed to close their doors within five years.
Senator Sherry made the comments yesterday at a public event highlighting the expanding online business environment.
“In five years, other than a few specialist booksellers in capital cities, we will not see a bookstore, they will cease to exist,” he said.
His comments come after REDGroup Retail went into administration, forcing the closure of all Australian Borders stores and many Angus & Robertson outlets.
But Joel Becker, the chief executive of the Australian Booksellers Association, says the prediction is “nonsense”.
“I was stunned to hear the statement because it has no basis in fact,” he said.
“The industry has obviously had some issues with REDGroup, the closure of all the Borders shops and many of the Angus & Robertson chain shops – although the franchises continue to operate and be healthy.
“Around Australia the bookshop forms a key part of the retail community and also the broader community – they continue to operate and operate profitably.
“I just have no idea where he came up with that statement.”
The Federal Government has set up a book industry strategy group, which is due to report back later this year.
Mr Becker says Senator Sherry’s involvement in that group makes his dire prediction for the industry even more surprising.
“We hope that they come out with some positive recommendations … and that Senator Sherry re-evaluates some of his statements,” he said.
Scott Ryan, the Opposition’s parliamentary secretary for small business, says he understands why booksellers are shocked at the comments.
“Booksellers in Australia have every right to be angry,” he said in a statement.
“Nick Sherry should be encouraging the prospects and aspirations of small business, not predicting doom and gloom and the end of book retailing.”
Senator Sherry says he was merely trying to emphasise the challenges facing small businesses.
“I use this as an illustrative case to highlight the fact that we need to be able to adjust to these new technologies and do it very, very quickly, otherwise it will be much tougher to survive in the business environment,” he said.
Mr Becker agrees bookstores are facing challenges in the digital age, but says they are adapting well.
“The so-called bricks and mortar shops are responding to that by developing e-commerce, the ability to sell books online themselves and also to sell e-books, which are still very small markets here in Australia but based on overseas experience will grow,” he said.
“But the point is that someone who wants to buy a book from their local shop but doesn’t want to go out will be able to do that online.
“That’s going to take another six to 12 months to get up and running with some of the smaller businesses, it already operates with some of the chains and franchise operations.”
Mr Becker says pricing of books is an issue for booksellers, but says as the Australian dollar gains ground, savings are being passed onto consumers.
“The economists all take their punts, but in the end, prices of books will be reflected by the changes in currency prices and exchange rates,” he said.