David Almack

U.S. Director, CLC International

How would you describe the health and mood of the industry as we start a new year, and on what do you base that?

            At this point in the year, I think a lot of us are praying for a strong Christmas season and have not really begun thinking a lot about the New Year. I think that the independent Christian retail industry is as fragile as it has ever been, if not more so. In our case, the entire year has been affected by significant snow last Christmas and in February, which put us in a hole to start with. The rest of the year has seen double-digit declines in sales with no uptick at any point. We are praying that the sour economy will improve and that people will start shopping again and that we will benefit from this. If this does not happen, I anticipate that many more stores will close. We are going to have to consider if we can keep all of our stores open and also look at downsizing in the future unless something changes.

How is that view going to impact/shape your 2011? Any new emphases, initiatives, programs?

            We are going to be cautious and with limited cash flow will not be able to take significant risks especially on products that might not sell. We have a new leader of our retail group, Jim Pitman, who will be surveying our customer base to better understand how we can meet their needs. All our new initiatives and programs will be determined in part by the responses we get from our customers as we try to understand the new landscape in Christian retail. Clearly we still see upside potential in church supplies and Bibles and will be working hard to maximize these categories in 2011.

What do you see being the main "big picture" issue facing the industry in the year ahead?

            What should the Christian retail store of 2011 look like—size, product mix, merchandising. Clearly we cannot keep doing things the way that we always have or we will not exist in the future. Radical change is needed across the industry. 

Which is the main "daily details" issue you believe needs to be addressed in 2011?

            A passion for the products and a sense of urgency that drives change and innovation. Everyone that is still left in the Christian retail industry and those considering becoming a part of it will be forced to assess their passion for what we do and the products that we sell. The environment we are in calls for people who know books and other Christian products “inside and out.” People will not get in their cars and spend their hard-earned dollars in our stores if they are staffed by dispassionate amateurs being paid minimum wage who treat their work as “just a job.” This is a signature moment in time that calls for people to see what they are doing as a vocation and calling.

Can you point to something specific (a trend, a release, an event, a person's contribution) that gives you hope for 2011?

            With all that I have said above, I remain hopeful that with the economy on the rebound, a focus on Bibles and a new NIV version to sell, we will have a better year than 2010. I also believe that this sifting process we have been going through in the last few years will eliminate many players, but will allow the innovators to shine. When people have their backs against the wall, they are often forced to act in ways that they would not in any other circumstance. Necessity is the mother of invention!

David Amster

President, Integra Interactive

Industry health:

            Health: LifeWay and Mardel are healthy. Independents, 10% are healthy, 60% are OK with some reserves, 30% just hanging on with no reserves. Mood: Most retailers are weathering the economic conditions fairly well, but a storm could blow them over.

Your year:

            We are working diligently to develop more business with LifeWay and Mardel. We are also looking to strengthen our relationship with our Top 150 retailers. Emphases: In-store solution for purchasing e-books and digital MP3 music. Selling music packaged in new ways and highly personalized.

Big picture:

            Being relevant to the 20- to 34-year-old demographic.

Daily details: 

            At the end of the day, only one thing really matters: Are you providing what your customer wants? Are you willing to really service them? Your preferences, your conveniences … none of these matter.

Glenn Bailey

President, STL Distribution North America

Industry health:

            For us, the top book of this year is not selling as well as each of the top four books of last year. Not only do stores suffer from not having top product, but store traffic has to be down when there is not as much top product excitement as a year ago.

Your year:

            Instead of waiting for publishers to deliver more best-sellers, we are trying to help retailers give better customer service by offering thousands more titles with the help of print-on-demand.

Big picture:

            I’m more concerned about the next five years. As of yet, I don’t think our independent retailers have good enough ways to participate in the coming e-products boom. Publishers can increasingly access their markets without the help of Christian retail, and this puts our historic supply-chain model in jeopardy.

Hope for 2011:

            $1.5 million of print-on-demand equipment is being installed in STL Distribution's center. This will enable us to increase our offering by tens of thousands of titles, make custom books for retailers to sell to local churches and organizations and help new authors and publishers launch titles without needing to print tens of thousands. 

Chuck Broderick

President and co-owner, Living Word Christian Store, Tampa, Fla. 

Industry health:

            Our take on the health and mood of the Christian retail industry is “weak”—quite weak. As the big name online sellers become more popular and people become more familiar with using the Internet, much of the normal book sales are eroding from the brick-and-mortar store to the Internet. Even though we have a prominent Web presence, even our regular customers often go to other Internet sources. The continued popularity of e-books also is slowly eroding more sales revenue from independent Christian retailers and there is no e-book solution for us in sight.

            We still do what we do best, and that is minister in many ways to the locals. And our presence (as) a Christian retailer in the community is praised. However, that doesn't take away from the fact that even our loyal customers check other sources before coming to us. It's a fact of life. We need to learn to adjust accordingly.

            We also are still faced with our venders being some of our biggest competitors, selling direct to our church customers and private customers as well.

Your year:

            We are looking for alternative ways to keep the doors open, new products, alternative methods of promoting to educate our customers that we have value in-store, and online is not always the lowest price and for them to use our Web site if they must shop online. We also need to put more effort in contacting our church customers and letting them know that we need them to use us as their primary source for their church supplies and other product needs.

Big picture:

            We may have to in many ways reinvent ourselves to fit in, that is, perhaps be more technology focused. We can't wait two years to get on the bandwagon of new technology—such as e-books.

Hope for 2011:

            No! Long-term survival may depend on a very big overhaul or reinvention of how we do a large part of our business today. Hardcover and paper books will never go away, but each year a percentage of the sales erodes to new technology. Therefore, we need to keep in step and not continue to lag behind. Christian retail needs an advocate, something CBA has not been in recent years.

John Paul Brownlow

Vice President, Brownlow Gifts

Industry health:

            I would describe the health of our industry as somewhat poor right now. Our reps report a few more stores will be closing this year, with others in distress. Many of the stores are holding their own, not really up, but not dramatically down either. I think we have to remember, though, that

most retail is still in the doldrums. We are not the only ones facing these issues. General gift stores are fighting the same problems. We are just in a phase right now where people are really thinking about how they spend their money.

Your year:

            To help our stores out, in the spring we will be testing a policy of “Free Freight with a $500 order.” We expect it to be a big success, and after the spring we will decide how to proceed.

Big picture:

            The big-picture issue is really foot traffic. How can we get more shoppers into the stores?

Daily details:

            All of us, both vendors and retailers, have to sharpen up the basics we have all heard before: Are we connecting with our customers? Is it more than just a transaction? It’s nothing new, but the way we interact with our customers is huge before, during and after the sale. In these times, those core principles mean more than ever.

Hope for 2011:

            A specific trend that gives me hope for the future is the growth of faith-based films and DVDs. These small budget, but big impact movies have a way of connecting with the same target audience that shops at Christian stores. These movies cannot be found in mass-market stores, and so shoppers come into their local Christian store for them. Faith-based movies are a destination item for Christian stores, and when they come in for Fireproof or some other movie, they are likely to pick up something else.

Michael Hupp

Executive director—merchandising, Cokesbury

            2011 should be a basic year—no major elections and hopefully no catastrophic events. The hopes for a good year are found in several key areas.

            1. New, fresh and exciting products. If vendors play things too tight and (don’t) take some risks on new products and authors, customers will look at other places beside brick-and-mortar stores and Christian channels to find their needs met.                                                                                                       2. Good business leaders are learning to cope with the new level of sales by keeping their inventories turning and costs in line. They are the encouraged ones that have adjusted and realigned their business to match the reality of the times. Those who built their business costs to match the highest sales levels have now either adjusted or closed. The hope is found in a tightly controlled business that looks for potential.                                                                                                                                 3. We need to stop looking for only the big win and find the smaller victories in products and services. If we live for the new The Purpose Driven Life, we are most likely missing those consistent products that we just need to stay in stock on. Plus, we need to really watch what the customers want now and head that way. If we do, they will appreciate finding a source that meets their needs.

            4. There is hope to those who refuse to be a victim to the times. Those retailers are the ones working hard, looking for opportunities and not bemoaning the market shifts, lower sales than the past and changes. Being proactive keeps the possibility thinkers successful. People still love their Christian bookstore but do not like being disappointed.

            5. Our biggest competition is discretionary income, not the mass retailers, Internet or direct seller. People only have so much to spend, so they need good values on good products. Product providers need to get their costs down, so better pricing can be passed on to the retailer, and retailers need to provide good deals to their customers that also provide good margins. It is possible to do both, but it takes time to seek and find.

            Overall it always comes back to a passionate desire to meet the needs of customers and the ministry value of what we do. The owner/manager is “climate control” to not only the staff, but also the customers. If the leaders are always showing discouragement at the hard work (yes, it used to be easier), then customers won’t want to hang out there anymore; and frankly, the staff won’t either.

            God is still using and blessing Christian publishers and retailers, but we must be prepared to work harder and smarter. Spreading the gospel of Jesus Christ has never been easy, but it has always been simple. Now are the times for simply good products, values and encouragement flowing from simply good hearts. That is Christian retailing at its best.

Michael Hyatt

Chairman and CEO, Thomas Nelson

Industry health:

            I am cautiously optimistic about the health and the mood of the industry. Retailers seem well-stocked and ready for the holidays. Moreover, we are beginning to see our sales numbers—particularly daily replenishment—trend upward. We hope this is the beginning of an economic recovery.

Your 2011:

            We will have to be even more aggressive with efforts to support our retailers. We will be diligent in working with them to do anything to help them create a unique customer experience. 
            As digital becomes a more significant part of our business, we will focus on driving content and creativity in that area, too. Our digital team is focused on leveraging content digitally, beyond e-books. 
            Each of publishing groups is trying new things. Our fiction team is trying new strategies to entice readers to try the first book in a series so that they might consider paying full retail for the rest of the books in the series. And our Bible team has launched two strategic programs to increase the strength of the Thomas Nelson brand. First, they created a “Guaranteed for Life” program for all Nelson Bibles. Second, they have established a partnership with World Vision to give a portion of every Nelson Bible sold to help free children from poverty. 

Big picture:

            In a word, “reinvention.” Publishers and retailers are going to have to reinvent themselves to be successful moving forward. Those who embrace the changing wants and needs of their customers will succeed. Those who resist the change will inevitably struggle. Reinvention of who we are and how we operate today is the only path to relevancy tomorrow. Our purpose at Thomas Nelson of “inspiring the world” will stay the same, but our tactics must evolve. 

Daily details:

            Most book-publishing CEOs find themselves having to run two companies: first, the traditional physical publishing house and second, a new digital publishing house. While there is some overlap, they are very different businesses, requiring more resources at this stage than we had to provide before the digital explosion.

Hope for 2011:

            Books such as Jesus Calling, Same Kind of Different as Me, Love & Respect, Fearless and The Total Money Makeover assure us that the right message will find an audience of people looking for hope, inspiration and answers. A message that truly meets customers’ needs will succeed, regardless of format, economic climate or consumer confidence.
            There is one thing that I keep coming back to for hope: “And we know that all things work together for good to those who love God, to those who are the called according to His purpose” (Rom. 8:28). That verse and many others remind us that the Lord provides our ultimate hope.

Mark Kuyper

President, Evangelical Christian Publishers Association

Industry health:

            I believe the health of the industry for publishers and retailers is fragile, as is the general economy. We have seen small increases and promising numbers from our data. However, we are still dealing with national unemployment numbers near 10%, a housing market that continues to struggle to regain its footing and a very cautious consumer-confidence index. Until consumers feel much more comfortable spending their discretionary income, progress will be slow and isolated. We have a good percentage of publishers experiencing some growth, but only a few publishers who are seeing robust growth.

Big picture:

            The ongoing expansion of digital product will be the dominant issue for publishers and retailers for the next few years. This revolution already has caused dramatic shifts for publishers and will likely have even greater impact on retailers.

            Publishers have had to create new departments to handle the new work flow for backlist and currently releasing product, and it will only get more complex as content takes on multiple forms in this new world of transmedia. From rich media powered by app publishing to short form content, to mobile distribution and marketing, to linking related content, they will all require new processes and systems.

            We are working with CBA to assist them in the selection of a service which would efficiently and economically include Christian retailers in the distribution of digital content. This is a significant move toward relevance in the digital era, however, retailers still need to figure out how to add value in the distribution equation and market themselves as a source for digital content in a very crowded market dominated by Amazon, Barnes & Noble and Apple. These are not small challenges for publishers or retailers.

Hope for 2011:

            I believe the release of the iPad has been the most significant development in the distribution of digital content this last year as it will accelerate the development and therefore the desire for digital content. Up till now, digital content has primarily been the exact same content that a consumer could purchase in print form. Devices have made content more portable, which is appealing to some business and vacation travelers, as well as technophiles who have to have the latest gadget, but they have not been widely appealing to the masses.

            With the release of the iPad, there is now a device that provides a beautiful home for the kind of publishing that the digital revolution has only promised up to this point. With its larger beautiful color screen and full connectivity to the Internet, it provides a environment for rich media, extensive links and social networking.

            We have already seen gorgeous, creative, interactive children's books as well as content that includes video which cannot be available in print or on any other device at this time. The more this type of content is developed, the more consumers will desire to purchase devices. As a result, the prices of e-readers have dropped dramatically, and they will probably develop some of the same functionality.             The iPad will soon have competitors in the tablet computer genre, which will drive down prices and increase functionality, too. This gives me hope because print publishing is carrying digital publishing right now. The faster we can increase sales and find new readers for enhanced content, the more rapidly we can get to a profitable business model.

Kim Pettit

Director, Christian Trade Association International

Industry health:

            Cautious optimism. I’ve met or corresponded with suppliers and retailers from Australia, Brazil, Canada, Indonesia, Singapore, South Africa and the United Kingdom who have all reported growth or more success from their initiatives than they anticipated this past year. And, even in places that have suffered with the sluggish economy, like Nigeria, or where many Christians lack resources, like India, the industry is energized by the potential for resources to build the church.

Your 2011:

            At Christian Trade we will continue to work to build the industry in 2011. Our first initiative is Marketsquare International 2011 in January, held with the Inspirational Value Book Show this coming year. We also hope to have Marketsquare Brazil with ASEC this May and Marketsquare Asia and Marketsquare Europe in the fall. We want to explore ways to provide greater benefits to our members and to unite the industry in more places. In 2010 we welcomed a new member nation, Ukraine. In 2011, we hope to see the launch of Christian Trade India.

Big picture:

            I believe it is critical for the industry to work with church leaders to promote the value that Christian resources—from books and Bibles to gifts and apparel—have in strengthening and encouraging lay people to grow spiritually, remain committed to the gospel and apply it to their daily lives. It is imperative that young people catch the vision for communicating the truth about Jesus through whatever media they use most, and suppliers and retailers have to determine how they can collaborate with what God is already doing in a way that is economically sustainable for years to come.

Daily details:

            The most pressing daily concern varies from one market to another. In some markets, the biggest issue is the lack of capital; in others, it is distribution. In too many countries, literature is only available in the capital city and a few other locations, and it is easier to import and export it than to reach Christians in outlying areas. Elsewhere, too many consumers are unaware or indifferent to our efforts, and we need wisdom to effectively enable Christian products to reach their target audience.

Hope for 2011:

            I am particularly encouraged by the evangelistic zeal of Christian publishers and distributors I’ve met in Africa and in Asia. In Singapore this past September, one distributor spoke passionately about how the gospel is reaching people in China, and about Muslims who are turning to Christ. Another enthusiastically endorsed the success that Christian books can have in secular venues.

            When I hear the stories told by those who face the unique challenges of the industry—from Latin America and the Caribbean to India and Indonesia—I am reminded that our God is worthy, merciful and powerful. He is graciously at work in the lives of brothers and sisters around the globe, and it is our privilege to participate in what He is doing and to pray for one another.

Steve Potratz

President, The Parable Group

Industry health:

            Actually better than last year at this time. The stores we work closely with seem to have a better handle on their finance and understand the realities of the business climate. Because they are mission-driven, they are adjusting as best they can and moving forward.

Your 2011:

            We intend to aggressively grow and carry out our assignment.

Big picture:

            Digital books. We must have an easy solution very soon.

Daily details:

            The high costs for independents to do business. We must diligently apply technology to reduce costs and improve margin.

Hope for 2011:

            For me personally, books like Radical by David Platt, 2 Timothy and Hebrews chapter 10 specifically reminding me of the reality of the gospel and the suffering we are promised in Scripture. What we are currently going through in our business should not have been a surprise for any of us. Many of us were not prepared. I’m more committed than ever to be mission-driven and honor my Lord and Savior with my life. I know that my life is in His hands and that He will always resource His people for the mission He assigns.

Chris Rainey

Vice president of marketing, Kerusso

Industry health:

            Based on discussions with industry leaders, individual store owners and buyers the health of the industry seems to remain the same as (it has) been over the past 12-18 months—growth with some, decline with others, but overall, flat. The mood is cautiously optimistic. Many whom I have talked with have said they believe the worst is over, and while they don’t believe the road ahead will be easy, they do believe growth is on the horizon.

Your 2011:

            This past year we released a smaller version of our extremely popular Light House Apparel Center called the Light House Apparel Center 10. This new program gives retailers the ability to effectively merchandise 10 of our most popular designs along with our best-selling jewelry and accessories. Hundreds of stores have already implemented this program and are seeing tremendous success.

Big picture:

            I believe the main big-picture issue is one that has been big for several years and that is how to diversify and adapt to the ever-changing retail environment. Product selections need to be diversified. New technologies need to be combined with proven, traditional marketing practices to attract new customers and retain current customers.

Daily details:

            I believe that a deliberate and daily engagement with the community must be a priority. Brand happens anywhere we touch our customers. To increase brand awareness and therefore generate new business, we must be actively engaged with our current and future customers where they live—not just inside the four walls of our retail store. Who are the community leaders and organizations that we can partner with to make a greater impact?

Curtis Riskey

Executive director, CBA

Industry health:

            We have seen that very intentional promotions and outreach can help all Christian stores. I think retailers are looking for ways to distinguish their stores from big box and online competition by making sure that people are connecting in their stores, and unique promotions and community connections are doing that. Many stores are experimenting with new, service-oriented opportunities, such as personal engraving, to create a distinction, and many are connecting with local ministries in churches in partnerships to make an impact on their local communities. Christian retailers are being more proactive in their communities.

Your 2011:

            We are seeing more willingness for trading partners to work cooperatively to promote the role and mission of Christian stores. The fledgling success of Christian Store Day is very symbolic for how retailers and their vendors can work together in ministry while promoting the role and value of Christian stores in their local communities. As a trade association, CBA will be working to find more ways like this to leverage the entire industry to help grow Christian stores in mission and in business.

Mark Schoepke

Owner/general manager, Tree of Life Christian Outlets (Oregon, Washington), Parable Christian Stores, Eugene, Ore., and Corvallis, Ore.

Industry health:

            The industry is still in turmoil—many retailers are still on the edge financially!

Big picture:

            How many digital devices will (have been) sold at Christmas in 2010? Are the publishers going to do the same thing the music companies did when digital sales skyrocketed—keep prices high and squeeze every gross profit dollar they can from their retail market? We need a digital reader so we can sell digital books, too.

            What model are the publishers going to use for e-books? Right now, major releases are coming out in hardcover at $24.99. You can buy the e-book for $14.99. If they keep this model, it will be a bleak future for booksellers.

Daily details:

            The industry needs more gross profit to survive. Keep costs down, be conservative—try to get out of debt.

Jim Seybert

Industry consultant

Industry health:

            Leaders in many industries are beginning to get their minds around the “new normal”—whatever that might be for them. The Christian products industry, like all others, has been rocked by huge changes, but the dust is starting to settle. Tomorrow will never be like yesterday, but some of the uncertainties are beginning to come into focus. I think that allows for longer-term planning and decision-making. 

Big picture:

            I sense a growing desire among influencers to work for common solutions. There seems to be less emphasis on protecting turf and more focus on finding ideas that work for the larger community. I wouldn't call it "survival mode," but the collaborative spirit has probably been fueled by adversity. Rock-hard independence is morphing into interdependence. 

George Thomsen

Chairman, CBA

Director, The Harvest Store, Riverside, Calif.

Hope for 2011:

            I am excited about this coming year and look forward to what the Lord will do through our industry. It is my belief that there are many people who are upbeat about Christian retailing. This belief comes from talking with a lot of industry people, particularly at the International Christian Retail Show. The people who work in our industry today understand that they have a calling and that things are not always easy.

            We are blessed to be in an industry that is populated with people like this. They have a realistic optimism, resilience and determination that is admirable and infectious. While there was more uncertainty in 2009, things have settled down a bit, and now that people understand where the economy is, they are resolved to persevere and carry on in their work.

Sherry M. White

Senior buyer, American Wholesale Book Co.

Industry health:

            Optimistically cautious as far as the customer and their dollars. I see the trend to purchase Bibles and inspirational items like devotionals to continue. The customer wants hope and to feel good—both of these areas help with that. The slowdown in Christian fiction should continue as the market has gotten so saturated with product.

Your 2011:

            Traditionally I have made Bibles a strong promotional push during key selling seasons such as Easter and Christmas—but plan to adjust that thinking to have some type of promotion going year-round. Key will be to keep each event diversified within product offering to the customer. Also continue to focus on ancillary product for the Bible, such as Bible covers, tabs, hi-liters as well as reference books.

Big picture:

            Foot traffic. How do we actually get the customer into the stores—with the ease of alternative methods to purchase product and the price of the customer’s time?

Daily details:

            With sales being off, merchants are going to watch and trim budgets for product—the key is to trim the right product and be in stock on key items the customer wants. This will require weekly if not bi-weekly analysis of stock. Then, if you run multi-store operations, tailoring the right product mix to the right store—for efficient use of inventory dollars. We need to stock and sell more of what is selling and cut back and eliminate slow- to none-sellers.

Hope for 2011:

            Across the industry there are several proposed, upcoming movies and big-name titles. The key is getting them out in front of the customer—the stores can give them prime locations, but we need the publishers bought into getting major media on them—national programs that reach out into the secular world as well as CBA.

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