With the economy and consumer discretionary spending continuing to decline, used books departments are on the rise in Christian stores as retailers seek ways to generate sales and increase foot traffic.

They say selling secondhand titles makes sense as customers alter their book-buying habits during the recession.

Michael Beagan, operations manager for Family Book Outlet (FBO), said the chain of six discount Christian bookstores in Tennessee and Virginia tested used books in one location late last year in Knoxville, Tenn.

“The test store started with zero used books as we did not purchase a start-up inventory, and (it) now has about eight four-foot bays,” he told Christian Retailing. “Our Bristol, Va., store was next to set up this program, and they already have had an incredible response—nearly matching the sales at our Knoxville store. As fast as the books come in, many of them are flying right back out the door.”

A sister company to SAS & Associates—a wholesale dealer of bargain books, Bibles and gifts to independent Christian retailers—FBO only accepts secondhand titles for in-store credit, and the chain won’t accept used CDs or DVDs.

“We are always looking for ways to bring in customers—especially new customers—and we are seeing this as one tool to do just that,” Beagan said. “And given the economy, and how closely we watch our purchasing dollars and overall spending, purchasing used books fits our spending plan well. (There are) great margins if done correctly.”

Steve Slack Jr., whose family founded SAS & Associates, agreed.

“Used books are a hit for avid readers,” he told Christian Retailing. “When there is a heavy fiction demand, folks usually just want to read them and don’t care much for the condition. I think used books would be advantageous for any Christian bookstore looking to increase titles and margin with a minimum cash outlay, especially in these economic conditions.”

Ann Kardos, co-owner of the Logos Bookstore in Kent, Ohio, said that her store has seen an uptick in business after carrying used books for more than seven years.

“It has picked up significantly in the last year or so,” she said.

Janet Johnston—who this spring opened Sheep’s Pasture in Chambersburg, Pa., which sells used Christian books, CDs and gifts—said the economy played a part in opening the store, which will support local ministries.

“Because of the economy, there is more openness of people shopping for used books,” she told Christian Retailing.

Secondhand books was a growth area even before the economic downturn. In the first comprehensive and in-depth study of the entire used-book market, the Book Industry Study Group reported that revenues from sales of used books in the U.S. topped $2.2 billion in 2004, representing more than 111 million copies sold and 8.4% of total consumer spending on books.

Dwight Gullion—president and co-owner of Gullion’s Christian Supply Center, which has four locations in the Winston-Salem, N.C., area—has carried secondhand books since opening the small independent chain in April 1992 with a booth in a flea market.

“We take used books as payment,” he said. “They can cut into new book sales, but they can also contribute to new book sales. They’re a good draw and good profit margin. Customers might spend more on used books than new books. We sell between $100,000 to $150,000 annually in used books.”

Susan Moore, owner of Sonshine Book & Gift Shop in Lake Jackson, Texas, began carrying secondhand books in early 2002 after the Sept. 11 terrorist attacks. Located in the back of her 12,000-square-foot store, the used books department features 10, 4-foot racks marked with different categories. Like other Christian retailers that take in secondhand titles, Moore only offers store credit and no cash back to customers who seek to monetize their used books.

“My used book section is the highest profit margin in the store, and it turns the fastest,” she told Christian Retailing. “I didn’t pay freight to get (the books) here. I place them on the shelf and they move pretty fast. … I sell $1,700-$1,800 worth of used books a month. The profit margin is much greater than what it costs me. I’m selling a book that cost me 60 cents for $4. The profit I make is very good.”

Moore, whose Parable member store recently celebrated 35 years, said fiction titles, including the “Left Behind” series, The Prayer of Jabez and The Purpose-Driven Life, were among her “fastest moving” used books.

“Very rarely do I have somebody buy just one or two used books,” she said. “People end up buying something else.”

• Prev
• Next