Stores and suppliers ‘pleased’ despite ‘fiscal cliff’ government stalemate, superstorm Sandy that hampered business

The 2012 Christmas season yielded mixed results for Christian retailers, suppliers and distributors, but optimism prevailed despite the impact of late October’s Hurricane Sandy and the “fiscal cliff” stalemate in Washington, D.C., which hampered business. 

In the broader market, retail sales of electronics, clothing, jewelry and home goods grew by 0.7% year-over-year in the Oct. 28-Dec. 24 period, according to MasterCard Advisors SpendingPulse. That was below the healthy 3% to 4% growth that analysts had expected, Reuters reported. In 2011, estimated holiday sales rose 2% and continued up in 2009-2010, rebounding from the recession that saw a holiday sales decrease 5.5% in 2008.

Online sales, which make up about 10% of total holiday business, also slowed down this Christmas season, increasing only 8.4% from Oct. 28-Dec. 22, according to SpendingPulse. That’s a sharp slowdown from the online sales growth of 15% to 17% seen in the previous 18-month period.

In the Christian market, many were still compiling results in early January, but overall those contacted by Christian Retailing were upbeat about Christmas sales.

Bill Nielsen, chief operating officer of Berean Christian Stores, said the season was “strong overall” for the 18-outlet chain. 

“This was the result in large part due to strong Thanksgiving results and the last half of December, which was very strong as well,” he said. “We achieved this with less price-discounting than in prior years. Instead, we focused on increasing the customers we reached out to overall and then increased the frequency we touched them with a direct mail, emails and mass media. 

Christmas season sales were up about 7% compared to 2011, with books, Bibles, videos and gifts the “strongest categories” for Berean, Nielsen added. 

“As importantly, we increased our stock levels exponentially to ensure that we maximimzed the customer traffic we had with a greater breadth and depth of product,” he said. “As a result, we saw more traffic converted into transaction while also seeing about a 10% increase in the average sales per transactions.”

Chuck Wallington, owner of Christian Supply in Spartanburg, S.C., and founder of the Covenant Group, said that his store’s sales were down 5% in November and December compared to the same period in 2011. Covenant is the country’s second-largest independent Christian chain with 20-plus member stores.

“That was pretty much reflected in all Covenant stores that we heard from,” Wallington said. “I did not hear from any that were up, and some were down 8%.”

A combination of things negatively impacted sales, including the presidential election results. “Almost half the country was disappointed with the results, and that is the half that generally does the most shopping—at least in our stores,” he said. “Then you had the severe weather that hit the Northeast and also the tragedy at Sandy Hook in Connecticut. Both of those things seemed to weigh on people, and I think affected their Christmas shopping spirit. Toward the end of the season, the non-stop discussions about the fiscal cliff seemed to overshadow a lot of folks’ thinking.”

Online sales were “definitely the bright spot” at Christian Supply, Wallington said. “We had about a 60% increase in sales over the previous year online in November/December. … Bibles would have also been at the top of the list if we ranked by sales instead of sales units.

“We were actually disappointed with our results,” he added. “I talked with a couple of heads of chains as well as a lot of our indies in Covenant, and everyone seemed negatively surprised at the results of all their efforts for this Christmas. I sure hope 2013 provides more bang for our bucks and time.”

Among suppliers, at Tyndale House Publishers, Vice President of Sales Dave Endrody said that the Christmas season’s sales “were slightly above expectations.”

“Sales were not carried by any one or two titles, but rather the whole line,” he said. “With the very strong start to Black Friday sales, we were hopeful that the 2012 Christmas season would give us significant gains over a year ago, but the momentum slowed into December, and the season ended with only marginal gains over 2011 and the 2010 Christmas retail season. … Given the previous months’ sales history [in 2012] and the uncertainty of the economy, a robust Christmas selling season would have truthfully surprised us all.”

In digital sales, Joel C. Rosenberg’s Israel at War was “far and away our best-seller with all of the tension in the Middle East during the last quarter of the year,” Endrody said. “Still Lolo by Lauren Scruggs also showed well in e-book sales.”

Bill Westfall, vice president of sales at Barbour Publishing, said the company’s sales were down largely because it reduced the number of products in its Christmas program due to feedback from retailers. 

“However, the number of stores who did order our Christmas Gift Program this year increased by 3%,” he said. “Except for 2011, our Christmas sales were comparable to the previous years. We had higher sales in 2011, but the returns were greater as well. … We are optimistic that the sell-through of the 2012 products will be greater than previous years.” 

At leading apparel company Kerusso, Rusty Dycus, vice president of sales, said the Christmas season was “better than expected.”

“With the economy as poor as it has been, our sales to the CBA market was great,” he said. “I was pleased. Our sales were slightly up from Christmas 2011.”

Timed for the holidays, Kerusso released a “Habit” T-shirt, a parody of the much-anticipated December theatrical release of Peter Jackson’s The Hobbit: An Unexpected Journey.

Bill White, vice president of sales for NOTW, said the apparel company’s sales were up for the fourth quarter.

“We had very good season overall,” he said. “We are trending up in wholesale and our web business is especially strong. Our accessory and jewelry category is growing very well. … We believe we have weathered the worst of the economic storm. Sales are good and our customer base is growing. We are looking forward to a very good year.”

At Anchor Distributors, sales were also good, according to Whitaker Corp. Marketing Director Karen Keisler. 

“Knowing that Christian stores were still overcoming many challenges with the economy and Hurricane Sandy, we were pleased with sales results for the 2012 Christmas season,” she said. “Once again this year we observed that stores were ordering later than in previous years. The highest number of orders filled in one day was up nearly 18% over 2011 and took place on Monday, Dec. 17—a week later than the previous several years.”

Author of ‘Life-Changing Fiction’ expands reach beyond books to radio, film—even cruises

Karen Kingsbury has become a household name for many a reader of faith fiction. With a seemingly unquenchable desire to write what she calls “Life-Changing Fiction,” Kingsbury now has more than 20 million copies of her books in print with 15 recent titles having made their debut at the top of the New York Times best-sellers list.

Her current publishing contract—a 14-book deal with Howard Books, a division of Simon & Schuster—launched with a heartwarming Christmas tale that combined the love of a historic bookstore and the love of a couple. Released in October, The Bridge is an example of the author’s stand-alone women’s fiction Howard will publish, but the deal also includes some nonfiction.

Publisher Jonathan Merkh said that Howard specifically sought out Kingsbury to help develop its line.

“When Howard Books transitioned to Nashville and my vice president, Editor in Chief Becky Nesbitt, and I started strategizing about Howard developing its trade book line, we targeted several authors we’d like to work with,” Merkh said. “Becky had an existing relationship with Karen and brought her into the Howard family when Karen was up for a new contract.”

However, Howard is just one of several publishers Kingsbury has worked with in the course of her writing career. Her last book with Tyndale House Publishers was the 2008 title Sunset, part of the “Sunrise” series and the culmination of 14 books focused on a family that became near and dear to many a reader.

“Tyndale is proud to be the publisher that launched her with the original Baxter family series of books,” said Karen Watson, associate publisher, fiction at Tyndale House.

Zondervan has also published Kingsbury works, including Coming Home, and the “Bailey Flannigan” four-book series comprising Leaving, Learning. Longing and Loving, the latter a New York Times No. 1 best-seller.

Attempting to pin down the exact elements that make Kingsbury successful, readers and retailers tend to use words like emotive, connecting and encouraging.

“Karen is known for her masterful, heart-rending relationship stories,” Howard’s Merkh said. “ I think she really understands what makes readers’ hearts beat faster. She understands readers’ desire for love and connection, both earthly and heavenly. She captures those emotions and translates them into beautiful stories that resonate with readers on many levels. 

“What makes Karen unique is the same thing that makes her successful,” he added. “Her ability to write tender, emotive relationship stories and her ability to truly connect with her readers.”

Sue Brower, executive editor at Zondervan, also notes Kingsbury’s “unique relationship with her fans.”

“Her stories and characters are authentic and vulnerable offering hope and encouragement to the reader,” Brower said. “Karen’s goal is to create ‘Life-Changing Fiction,’ and through her novels she has been able to reach the spiritually lost and help them transform their lives through faith in Jesus.”

One retailer got down to brass tacks when describing Kingsbury’s success.

“Not to make it sound flippant, but she writes what people like,” said Chris Jager, fiction buyer for Baker Book House. “She developed a huge fan base early, and they, for the most part, have stayed very loyal.”

The “Redemption Series,” written with Gary Smalley, was successful, Jager said, because “she hit a chord with many people because the Baxters could have been their own family, neighbors or fellow church members. Then readers ate up the other series.”

Jager also pointed out that “the CBA market owes Karen a lot, especially the fiction department. She tackled issues like AIDS, divorce, cancer and others that many of the authors were staying away from. She wasn’t afraid to take the issues right to ‘Mayberry’ and force people to face them. She knew that people of all races, social classes and beliefs were dealing with these issues and were looking for ideas and answer of how to cope. She led the way for other authors to follow and readers loved it.”

Kingsbury attributes her success to simply following the direction she believes she receives from God.

“The Lord puts a story on my heart, but He has so many other hearts in mind,” she told Christian Retailing. “I haven’t changed anything—I write the story He gives me, and I pray that it touches people all over the world. God has simply expanded the boundaries, increased the territory. People have the walls of their hearts down when they read a novel. If it’s compelling, if it keeps them turning the pages, then God can speak to them in a very vulnerable place. When I pray about the impact of this Life-Changing Fiction, I believe readers and books in print has only just begun. The bigger it gets, the smaller I feel. It’s all for Him, through Him and because of Him.”

Kingsbury strong relationship with her reader “friends” sometimes comes through in her storylines.

“Karen presents realistic situations in her stories, often taken from the stories fans have told her about their lives,” Brower said. “She knows how to reach the reader in a deeply emotional way while still leaving them with hope for the future.”

She has been called “America’s favorite inspirational novelist,” perhaps because of “her connectedness to her fans through social media,” Brower said, noting her ever-growing list of Facebook friends—nearly 275,000 and counting—her online chats as well as the fact that she “keeps a dialogue going consistently.”

Merkh has also observed that Kingsbury “leaves each reader feeling special” as she interacts with them.

“She calls her readers ‘friends’ because that’s what they are,” he said. “Karen is actively involved with her readers—her friends—online and in person.  Whether it’s at a book signing, an event or an online chat, Karen talks with, connects with and prays with her readers.”

Kingsbury truly makes herself at home with her readers in the virtual world—which at times connects with the real world.

“I gather with them in my virtual living room (Facebook), and we have Latte Time or virtual chats,” she said. “Sometimes I’ll be at events and I’ll recognize a face and sure enough—they are my friend on Facebook or Twitter. I have about 300,000 friends on Facebook and about 35,000 on Twitter. But anyone who has ever read one of my books knows my heart. I don’t have fans. I have friends. In the end, there will be no autograph lines in heaven. Like my dad would say, the books simply give me a reason to connect—my heart to theirs.”

Though many women read Kingsbury, her readership expands far and wide, even to “middle school boys and 95-year old women who write to me at times,” she said. “But if I had to narrow it down to a demographic, I’d say avid readers age 13 to 55—mostly women. Still, I love hearing from the truck driver who reads the ‘Redemption Series’ at truck stops or the young Amish girl who finds hope in a story like The Bridge. Anyone who loves to read usually loves my books—again something only God could arrange.”

Readers who want to further connect with Kingsbury will find her at signing books, speaking at Extraordinary Women events, hosting cruises, sharing her own “The Heart of the Story” segment on Keep the Faith radio, working with movie producers to bring her stories to theaters.

Thousands of e-books are now available in new e-bookstore

LifeWay Christian Resources has launched a new mobile e-book reader app and an e-bookstore with more than 8,000 titles.

The LifeWay Reader app is available as a free download from the Apple App Store for iPhone and iPad and from Google Play for Android devices. 

The new app allows users to build a personal library from e-books and resources from the same Christian publishers found in LifeWay Christian Stores and at LifeWay.com.

The app comes with a free pre-loaded copy of the Holman Christian Standard Bible. Other free content is also available online.

“The Bible features in the LifeWay Reader app make it stand apart in the market,” said Tim Vineyard, president-elect of LifeWay Christian Stores. “The LifeWay Reader app contributes to LifeWay’s omni-channel plan for the digital world. We want to provide life-changing resources to churches and individuals in the format they prefer.” 

The app features a Bible lookup feature. It will link Scripture references present in any e-book automatically to the related Bible passage. Users can click on the link to display a pop-up window without having to switch apps or wait for a new browser program to start.

Customers can also digitally house their LifeWay content in one place. Any e-book purchased with a free LifeWay ID is in the app and at Reader.LifeWay.com. In addition, all digital content purchased from MyStudyBible.com and some other LifeWay apps are available to customers who use their LifeWay ID during checkout. In this way, content is available for users to view and read on their desktops, laptops, tablets and mobile devices.

Future updates to the app will include additional user customization, annotations, social sharing, improved integration with LifeWay’s various Bible study platforms and thousands of new titles. For more information on the LifeWay Reader app, go to www.LifeWay.com/ebooks.

The Crown Publishing Group, a division of Random House, has launched a new faith-based imprint, Convergent Books.

Convergent will “explore the contemporary faith experience for a broad range of Christians who are drawn to an open, inclusive and culturally engaged exploration of faith,” company officials said in November.  

Convergent will publish about eight to 10 books per year. Debuting in the fall, the imprint will launch with five titles, including Losing Your Faith, Finding Your Soul by David Anderson; and The Quaker Way by Philip Gulley. 

Based in Colorado Springs, Colo., the imprint will be headed by Stephen W. Cobb, president and publisher of Crown’s Christian imprints for the past 11 years.

“The audience for Convergent Books represents a growing movement of consumers,” he said. “These readers typically don’t see themselves as either liberal or conservative, evangelical or mainline. Yet they frame their spiritual journey in Christian terms, and they’re absolutely passionate about what theologian Brian McLaren has called, ‘the sacred endeavor of loving God and neighbor, stranger, alien, outsider, outcast and enemy.’ ”

Venture driven by Bertelsmann and Pearson will have ‘little direct impact’ on Christian publishing, observers say

Germany’s Bertelsmann media company and British publisher Pearson have agreed to merge the book publishing units Random House and Penguin Group, forming the new Penguin Random House company, said to be the world’s largest publisher of consumer books. Bertelsmann owns
Random House, the parent company of WaterBrook Multnomah Publishing Group, comprising WaterBrook Press and Multnomah Books.

WaterBrook Multnomah officials declined comment on the Oct. 29 merger, but industry observers say it should have little impact on Christian publishing.  

“Penguin has published some strong Christian authors, but they don’t have a Christian division,” Evangelical Christian Publishers Association President and CEO Mark Kuyper said. “Consolidating could prove to be beneficial for the two organizations, but I don’t see much impact for Christian publishers, stores or consumers.”

Dwight Baker, president of Baker Publishing Group, said he does not anticipate “staff consolidation to the degree that HarperCollins is applying” to Zondervan and Thomas Nelson. 

“Multnomah ceased to function [as] an independent publisher eight years ago, and Penguin’s contributions to the Christian market are uneven,” Baker said.

“Now that Rupert Murdoch at News Corp. controls Zondervan, Thomas Nelson and both the New International Version and the New King James Version of the Bible, Bertelsmann perhaps did everybody a favor by placing Penguin assets beyond his reach,” he added. “As an ongoing participant in the Christian market, Penguin’s future was uncertain anyway. Penguin announced last summer that they planned to abandon the Christian book category due to frustration over the inflated price of contracts. Coming from the offices of a major international publisher, there was some irony in that complaint.”

The merger “will have little direct impact on CBA,” said literary agent Steve Laube. “Penguin did not have a Christian division. They do publish a select number of titles, usually by highly visible authors—T.D. Jakes, for example. … Any merger is usually done with an eye towards finding efficiencies and eliminating duplicate infrastructure. Merging the best-seller and backlist power of Random House and Penguin creates a behemoth company.”

Evangelical Christian Publishers Association’s resurrected PUBu gathering drew nearly 200 professionals

Resurrected after a four-year hiatus, Evangelical Christian Publishers Association’s (ECPA) Publishing University (PUBu) received a positive
reception last fall from Christian publishing professionals. 

Held Oct. 22-23 at Wheaton College outside Chicago, PUBu12 drew 195 attendees. 

Attendees were “very upbeat,” ECPA President and CEO Mark Kuyper told Christian Retailing. “They seemed to be excited to connect with each other and learn.”

Melissa Wade, production coordinator at Discovery House Publishers, concurred.

“Seeing colleagues and friends with whom I hadn’t seen in a while was a highlight for me this year,” she said. “It was great to network with individuals within the production area and learn from them what they struggle with and what they are doing to better their publishing house. Sharing ideas and working together is what it’s all about.”

Citing economic turbulence within the Christian product industry, ECPA moved PUBu from a physical event to multiple online webinars in 2009. The last time PUBu was held in Chicago was in 2008, attracting 175 professionals and featuring 10 tracks. 

“We knew in 2008 that publishers would slash training and travel budgets when the economy fell apart, and [so we] waited until they told they were ready to send their staff to PUBu again,” Kuyper said. “We relaunched with four key communities rather than 10, and we limited the event to an evening networking reception and a single day of sessions rather than two days of sessions. 

“Most sessions were also led by community leaders rather than outside speakers,” he added. “We also held the event at Wheaton College instead of a hotel, which provided an ideal classroom setting and reduced costs dramatically.”

There was no overall theme for PUBu12, but its “four communities” focused on marketing, editorial, rights and licensing, and production.

“The expanded goal for the communities is that they will provide opportunities for our members to connect through our socially networked site to share articles, white papers, forums, pictures throughout the year, as well possible webinars or other creative learning options,” Kuyper said. 

Janet Stapleton, rights and licensing manager at Nazarene Publishing House, said the event was beneficial.

“It’s always valuable to have the opportunity to dialog with colleagues in the industry,” she said. “The benefits from these opportunities are not the kind that can be easily quantified. PUBu provides a venue for publishing peers to connect and discuss the interests and challenges we face in our individual publishing communities, while offering the type of continuing education options, which are not available in the customary educational settings.”

Sherrie Slopianka, executive director of online sales and promotion at Worthy Publishing, agreed.

“It was great to spend the day together hearing firsthand what other publishers are doing to re-invent the wheel and offer up their insights,” she said. “Book publishing needs to be more about collaboration instead of competition. We need each other.”

Bailey Utecht, an editorial assistant at Moody Publishers, said the event was “a unique and invaluable resource for publishing professionals.”

“For me, the highlight of PUBu was observing the differences in how different publishers do their work and evaluating our publishing house in light of those observations,” she said.

‘Substantial’ mega-storm causes business closures, but staff and their families kept ‘safe and secure’

Christian retailers and publishers have been impacted by Hurricane Sandy, called one of the worst storms in the nation’s history. 

The largest Atlantic hurricane on record made landfall in New Jersey on Oct. 29 with maximum sustained winds of 90 miles per hour, killing more than 100 people, knocking out power for millions and causing at least $20 billion in damage, USA Today reported.

Jim Pitman, director of retail operations for CLC Ministries International, overseeing its seven-store CLC Bookcenter operations in New Jersey and Pennsylvania, said that all CLC stores closed Oct. 29 and two remained shut Oct. 30, but all opened Oct. 31. 

“We praise God that all our bookstores were undamaged by Hurricane Sandy,” Pitman said. “While the wind was very fierce, especially at our bookstore in Northfield, N.J., we have found no physical damage. About half of our staff lost power in their homes.”   

He noted that the largest tree in his yard crashed due to high winds. 

“While it could have hit many things, including a missionary housing apartment next to it, it fell in the one place where it did no damage,” he said. “Talk about God’s protection. We were a bit shaken, and decided to sleep in the basement. Our staff have all reported that they and their families are safe, so we praise God for that.”

Robin Hogan, general manager of the Christian Cultural Center Bookstore in Brooklyn, N.Y., said the store was closed for two days.

“I have lived in New York for over 40 years and I have never experienced anything like Hurricane Sandy,” said Hogan, who was recently appointed to the CBA board.

“Praise God for His mercy and grace,” she added. “As a staff, along with our church, we prayed before the storm for the protection of our church, store, staff, families and communities. God answered our prayers because our families and homes were safe and secure.”

Steven Kaye, founder of Teaneck, N.J.-based Creation By Design, which offers Bible-based trading cards, said his business and home lost power Oct. 28, and his business was closed for eight days. 

“The hurricane has been substantial,” said Kaye, noting that a winter storm hit a week later dumping more than 2 inches of snow. “We had to close [until Nov. 6]. In today’s market, the loss of any sales is significant. No one has been hurt by falling trees or other damage, and so far, none of us have been flooded. This is saying something compared to our neighbors who have sustained substantial damages.”

Based in Phillipsburg, N.J., P&R Publishing was shut down by Sandy for four-and-a-half days, starting Oct. 29.

“Many of our staff were without power,” said P&R Publishing Sales and Marketing Vice President Ian Thompson. “All our staff were safe. … On Monday, Nov. 5, we still didn’t have phones back. Some of our employees were still out of power.”

New Jersey was the hardest-hit state by the storm, which stretched 900 miles wide at its peak, as more than 8.5 million people were without electricity, and at least 17 states suffered intense effects from the storm, USA Today reported.

Headquartered in the New York City borough of Manhattan, American Bible Society (ABS) was closed due to the storm. 

“We are very thankful to report that there was no loss of life or serious injury to [ABS] staff,” said Geoffrey Morin, ABS’ chief communications officer.  

Random House’s building in New York City was unaffected and remained opened, despite high winds and heavy rain, said company spokesman Stuart Applebaum. The company’s Maryland distribution center was shut down for 30 hours on the day the storm hit. 

Leading apparel company Kerusso provided assistance in November to the Long Island, N.Y., area, impacted by Sandy. Kerusso CEO and President Vic Kennett said that his Berryville, Ark.-based company donated more than 6,100 items, including 1,990 sweatshirts and 2,230 winter caps. The clothing was distributed throughout Long Island by Men’s Discipleship Network. 

Sandi Patty and Jason Crabb did a benefit concert Nov. 24 at Calvary Baptist Church in New York City. All proceeds were to be given to World Vision for storm relief.

Christian retailers with ‘in-store experience’ will benefit, says CBA head

The United Methodist Publishing House (UMPH), Cokesbury’s parent company, will close all of the historic chain’s 57 stores by April 30. 

Announcing the move Nov. 5, the UMPH board of directors said it will launch “a transition initiative” for its retail division. CokesburyNext will sell books, products and services at Cokesbury.com, the Cokesbury Call Center and through more than 40 sales representatives, as well as conferences, meetings and church events. The chain will be closing its 38 brick-and-mortar locations and 19 seminary stores, with the first shuttering this month.

“Cokesbury has been serving for more than 200 years, and during that time has continuously adapted to the changing landscape affecting congregations and their leaders,” said UMPH President and Publisher Neil Alexander. “A shift toward all things digital and the convenience of placing orders at any time is the reality of Cokesbury today. It is difficult to see the closure of Cokesbury local stores, but doing so will allow us to make a greater investment in the ways of shopping with Cokesbury that customers increasingly prefer.”

UMPH officials said 185 full-time employees and 100-plus part-time staff will be laid off by the store closings. UMPH will provide both severance packages and job-search services for staff.

Cokesbury has seen a steady increase in sales through Cokesbury.com and its Cokesbury Call Center operation in the past 10 years. 

At the same time, the number of Cokesbury customers relying solely on store locations has steadily declined. In its  most recent customer survey, only 15% of Cokesbury’s customers reported shopping exclusively in stores, UMPH officials said. 

CBA President Curtis Riskey told Christian Retailing that he was “not necessarily surprised the company is moving in the direction it is.”

Cokesbury is “a very unique Christian retailer where 85% of its current customer base shops in multiple ways outside of the brick-and-mortar model,” he said. “The company is changing its business model based on how its customers use the stores and purchase products, which is primarily online. However, his model does not translate to all retailers. A need remains for physical stores because people like to shop in them. 

“We think the loss of physical Cokesbury stores will benefit existing Christian stores, as customers who are looking for the in-store experience will find other Christian locations to shop,” Riskey added. “A recent Bowker Market Research study found that the brick-and-mortar store is still the number one way that readers learn about new titles and authors.”

Munce Group President Kirk Blank agreed. 

“We had a local Cokesbury store in Clearwater, Fla., that closed,” he said. “Their strategy of using local reps to serve the churches appears to be working. I had thought if their strategy worked, more and more of the Cokesbury stores would close. I was surprised that all of the stores would be closed by April.

 “This is another opportunity to see independent retailers, especially Munce Group member stores, step up in an even greater way to serve their communities,” Blank added. “This is also an opportunity for our vendor community to see the importance of the local independent Christian store.”

Bill Nielsen, chief operating officer of Berean Christian Stores, saw the closure as “a bit of a surprise.”

“While the trends of Christian stores closing is not something that is a surprise to anyone, it is never welcome news and never good for our industry,” he said. “I have firsthand experience in knowing how much denominations appreciate having a local brick-and-mortar store to serve them in their local community. Such a denominational following is a strength that I had hoped would keep Cokesbury strong for years to come.  

“Our industry has seen store closures to the point where too many markets are now underserved or not served at all,” Nielsen added. “Therefore the additional loss of any store regardless of size is bad for us. Losing a large group of stores that offer centralized buying, merchandising and marketing for the suppliers is even worse. 

“I understand Cokesbury has plans to maintain the majority of their sales. I fear the road for them in this regard may be challenging, but it is in everyone’s interest to pray for and cheer them on in the process.”

Store owner David Green to appeal unfavorable court decision

Christian-owned-and-operated Hobby Lobby Stores and sister company, Mardel Christian & Education, didn’t receive the outcome founder and CEO David Green wanted in a federal court case. 

U.S. District Judge Joe Heaton ruled Nov. 19 that the Oklahoma City-based companies must provide the “morning after” and “week after” pills under new federal healthcare rules that begin Jan. 1. If they don’t, the companies will face fines of up to $1.3 million per day.

“We disagree with this decision and we will immediately appeal it,” said Kyle Duncan, general counsel for the Becket Fund for Religious Liberty. “Every American, including family business owners like the Greens, should be free to live and do business according to their religious beliefs. The Green family needs relief now, and we will seek it immediately from the federal appeals court in Denver.”

The court did not question the fact that the family’s beliefs forbid them from participating in abortion, but ruled that those beliefs were only “indirectly” burdened by the Affordable Care Act (“Obamacare”) mandate’s requirement that they provide free coverage for specific, abortion-inducing drugs in Hobby Lobby’s self-funded insurance plan.

Hobby Lobby was founded in 1972 and has grown from one 300-square-foot retail space into more than 500 stores in 41 states. The chain employs more than 22,500 people.

“It is by God’s grace and provision that Hobby Lobby has endured,” Green said. “Therefore we seek to honor God by operating the company in a manner consistent with biblical principles.”

Mardel was opened by David Green’s son, CEO Mart Green, in 1981 and now has 35 stores with 800 employees. 

Hobby Lobby is the largest and first non-Catholic-owned business to file a lawsuit against the Health and Human Services (HHS) mandate. 

The Green family will continue covering preventive contraceptives for its employees, but their convictions prohibit them from providing or paying for the abortion-inducing drugs, which would violate their belief that life begins at conception. The lawsuit acts to preserve the companies’ right to carry out its mission free from government coercion. 

The Becket Fund also represents a number of other Christian colleges and organizations in similar suits. At press time, there were approximately 40 lawsuits challenging the HHS mandate.

Legal counsel argues Bible publishers ‘should be free to do business’ according to the book that they publish 

In a victory for faith-based companies, a federal court has stopped enforcement of the Obama administration’s abortion pill mandate against Tyndale House Publishers, which filed a healthcare lawsuit against the U.S. government Oct. 2.

In its Nov. 16 opinion accompanying a preliminary injunction order in Tyndale House Publishers v. Sebelius, the U.S. District Court for the District of Columbia wrote that “the beliefs of Tyndale and its owners are indistinguishable.  … Christian principles, prayer and activities are pervasive at Tyndale, and the company’s ownership structure is designed to ensure that it never strays from its faith-oriented mission.”

“The court has no reason to doubt, moreover, that Tyndale’s religious objection to providing insurance coverage for certain contraceptives reflects the beliefs of Tyndale’s owners,” the court continued. “Nor is there any dispute that Tyndale’s primary owner, [Tyndale House] Foundation, can ‘exercise religion’ in its own right, given that it is a nonprofit religious organization; indeed, the case law is replete with examples of such organizations asserting cognizable free exercise and RFRA [Religious Freedom Restoration Act] challenges.”

Tyndale House, based in Carol Stream, Ill., is the world’s largest privately held Christian publisher of books, Bibles and digital media, directing 96.5% of its profits to religious nonprofit causes worldwide. The publisher specifically objects to covering abortion pills. The court’s order is the third nationwide against the healthcare mandate, according to the Alliance Defending Freedom (ADF).

“Bible publishers should be free to do business according to the book that they publish,” said ADF Senior Legal Counsel Matt Bowman, who argued before the court Nov. 9. “The court has done the right thing in halting the mandate while our lawsuit moves forward. For the government to say that a Bible publisher is not religious is startling. It demonstrates how clearly the Obama administration is willing to disregard the Constitution’s protection of religious freedom to achieve certain political purposes.”

The administration argued that Tyndale House “isn’t religious enough” for an exemption from the mandate, a component of Obamacare that forces employers, regardless of their religious or moral convictions, to provide insurance coverage for abortion-inducing drugs, sterilization and contraception under threat of heavy penalties.

The publisher is subject to the mandate because Obama administration rules say for-profit corporations are categorically non-religious, even though Tyndale House is strictly a publisher of Bibles and other Christian materials and is primarily owned by the nonprofit Tyndale House Foundation. The foundation provides grants to help meet the physical and spiritual needs of people around the world.

In June, the U.S. Supreme Court upheld “Obamacare” as constitutional. Formally known as the Patient Protection and Affordable Care Act, Obamacare includes a “preventive services” mandate issued by the U.S. Department of Health and Human Services, which forces businesses to provide the “morning-after” and “week-after” pills—without co-pay—in their health insurance plans. 

In September, Hobby Lobby and its sister company, Mardel Christian & Education, filed a similar suit. But shortly after the Nov. 16 preliminary injunction order in favor of Tyndale House, a judge ruled Nov. 19 that the Oklahoma City-based companies must provide abortion pill coverage. Hobby Lobby and Mardel planned to appeal the decision.