Monday, May 19, 2008

Why we dont have small medium format Book store chains


Small Format Book Store is not coming up Because returns from Books is very very low,when compared to life style items .

In Total large format store Sales (Land Mark) average Contribution from Books is only 25-30% where you make a Margin of 25-35% , 20%-25% comes from Music where you get a Margin of 15-25 % & 30-40% comes from Gifts where you make 300% as majority of these Items are non Branded.

When you have this proposition you can make profit & grow,other than landmark,other large format stores like Oddyssey, crossword, oxford, corner Book store,reliance time out are trying hard to Hit this.as their books inventor y is very High when compared with its sale.Even discount sale are not helping them to cut down their inventory.

Landmark being backed by East West & West land one of the strong south based Book distributor is only an advantage.
"Higginbothams" of Simpson Group (old & Big name in Book trade),"Fountain Head" of India Book Distributors are not able to make it as they majorly rely on Books & stationery's.


Small & medium Format Stores have space constraint. you need a Minimum 200-300 Sq ft for stocking various ranges of Books to keep your customer happy.Small & medium Format Stores will need additional space allocation for various products to make it Profitable .


Many Intelligent entrepreneurs don't Jump in small & Medium format Book Store as they Know this constraint & ROI in book store is also very low & slow, compared to other retail Business.

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