Economic downturn makes for unhappy reading

Not even the boy wizard could help Waterstones' profits last year (Waterstones)

Waterstones today announced figures that suggest the book market has been effected by reduced customer spending during the current economic climate.

The retailer’s parent company HMV saw Waterstone’s like-for-like sales drop 3.1% in the 26 weeks between April and 25 October. The comparison showed a 1.4% fall when adjusted for the phenomenal impact of Harry Potter and the Deathly Hallows on 2007’s result.

The report also shows HMV has suffered market deterioration since the end of October which is in line with the well-documented downturn in consumer confidence. It is quoted in saying the book market has seen a ‘marked deterioration’ in the five weeks to 29 November.

Waterstone’s operating loss before exceptional items increased in the first half year to £9.3m from £8.9m in 2007.

According to HMV the book market as a whole shrunk 5% during the period and had been particularly hit by poor performances by non-fiction publications.

What is perhaps more worrying is the continued work with year-on-year losses. Before tax losses for the group were £27.5m, against £28.7m a year earlier.

Of course this doesn’t mean that novel writing has to be unprofitable. Self-publication can be a fantastic way of getting your work read by a wider audience and earning money on the side.

The Scribbler will be looking to publish advice and guidance on the best means of self-publication in early 2009.

Keep it here for all the best news, reviews, features and interviews on the literary industry.

Take a look at a book launch that really should have peaked Waterstones’ profits last year. The irrepressible Russell Brand and his Booky Wook in Waterstone’s Piccadilly:

Discussion:
Has the credit crunch stopped you buying the number of books you would normally like to? Have you resorted to library loans? Aspiring writer? Would you consider self-publication if publishers begin a campaign of turning authors away due to the economic climate? Let us know below.

Words: Dean Samways