 Suppliers, retailers identify business emphases for ‘signature’ year
New technology and old-fashioned charm are the two big needs if the Christian retail industry is to see business blossom in the coming year. That is the consensus from a wide range of suppliers, retailers and service providers who reflected on the state of the industry and highlighted the importance of digital delivery and customer service excellence for its future, for Christian Retailing.
Stores must secure a place in the growing market for e-books, many agreed—though some expressed concern that a proposed industry-wide digital delivery platform had still not been announced, almost six months after it was identified as top priority by CBA, at the International Christian Retail Show. “Publishers can increasingly access their markets without the help of Christian retail and this puts our historic supply-chain model in jeopardy,” said Glenn Bailey, president of STL Distribution North America (STLD). Chuck Broderick, co-owner of Living Word Christian Store in Tampa. Fla., added: “Each year a percentage of the sales erodes to new technology. We can’t wait two years to get on the band wagon. ... We need to keep in step and not continue to lag behind.” Even when an e-book solution is introduced, retailers will need to “figure out how to add value in the distribution equation,” said Mark Kuyper, president of the Evangelical Christian Publishers Association (ECPA), which has been working with CBA on the digital platform effort. Stores would have to “market themselves as a source for digital content in a very crowded market dominated by Amazon, Barnes & Noble and Apple,” he added. “These are not small challenges for publishers or retailers.” Kuyper also noted that the growth in e-book sales was not only challenging to retailers. It meant additional costs for publishers having to create new departments to handle backlist and new releases in digital formats, “and it will only get more complex as content takes on multiple forms in this new world of trans-media.” Michael Hyatt, chairman and CEO of Thomas Nelson, added that most book publishing CEOs have found themselves having to run two companies—the traditional physical publishing house and a new, digital operation. “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,” he said. While technology may be able to level the playing field for stores, it will be their customer service skills that will ensure victory, according to many. “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,’” said David Almack, U.S. director of CLC International, with nine retail and church stores. “This is a signature moment in time that calls for people to see what they are doing as a vocation and calling.” That view was echoed by Michael Hupp, executive director of merchandising for Cokesbury bookstores, who said: “Overall, it always comes back to a passionate desire to meet the needs of customers and the ministry value of what we do. “If the leaders are always showing discouragement at the hard work, then the customer won’t want to hang out there anymore, and frankly the staff won’t either.” John Paul Brownlow, vice president of Brownlow Gifts, said that stores needed to sharpen up on the basics. “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.” CBA Executive Director Curtis Riskey said that he was encouraged by the ways in which stores were experimenting with new service-oriented opportunities like personal engraving to create a distinction. In addition, many were connecting with local ministries to make an impact in their communities. “Christian retailers are being more proactive,” he said. Association Chairman George Thomsen was hopeful for 2011. “The people who work in our industry today understand that they have a calling and that things are not always easy,” he said. “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.” Assessments of the health of the industry varied. “Better than last year,” reported Steve Potratz, president of the Parable Group. “The stores we work closely with seem to have a better handle on their finance and understand the realities of the business climate.” Kerusso Vice President of Marketing Chris Rainey said that he saw “cautious optimism” from stores, sensing growth on the horizon. Hyatt had the same view. “We are beginning to see our sales numbers—particularly daily replenishment—trend upward,” he said. “We hope this is the beginning of an economic recovery.” However, “fragile” was the word used by Almack and Kuyper, who said that a good percentage of publishers were experiencing growth, but it was “robust” for only a few. Among the innovations planned for 2011 are STLD’s new print-on-demand service providing out-of-stock and custom titles and Brownlow’s offer of free freight with $500 orders, to be introduced in the spring. Nelson’s emphasis will include being “even more aggressive with efforts to support our retailers,” said Hyatt. “We will be diligent in working with them to create a unique customer experience.” One potential growth area spotlighted was faith-based movies. These “small budget but big-impact” films have a way of connecting with the same target audience that shops at Christian stores, said Brownlow. These movies cannot be found in mass-market stores, so shoppers turn to Christian stores, he added. “When they come in for Fireproof or some other movie, they are likely to pick up something else.”
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