Christian retailers 'will be impacted' by chain's store closures 

Borders' bankruptcy "presents opportunity" for Christian retailers—both chains and independents as well as marketing groups, according to industry leaders. They say the Christian retail channel could see a bump in business following the second-biggest U.S. bookstore chain's February filing for Chapter 11 bankruptcy protection.

CBA said that Borders having to close more than 200 of its 642 stores "will be a loss of opportunities for the sale and distribution of Christian books and Bibles to a world in desperate need of them."

At the same time, the store closings "present opportunity for others, including independent retailers, to step in and fill the gap," the retailers' trade association said in a statement regarding the bankruptcy. "We have many independent retailers who, like Borders, work hard to build customer relationships and practice excellent retail. Christian retailers have an advantage in that they are excellent evangelists for Christian products."

But the retailers' trade group warned that customer loyalty only goes so far. "Customers are telling us today that if we are to continue to be successful we need to do those things—and much more," CBA said. "We can't ignore the need to be in the e-commerce game, nor can we stick our heads in the sand and hope that e-books are a short-lived fad. The transference of music sales from CDs to digital downloads was no fluke. If we do not adapt to the changing marketplace, our influence will diminish or disappear altogether.

"We must make strategic decisions and implement the right changes if we are to keep our customer base strong and remain relevant as Christian retailers, and as stewards of God's truth in print and in digital form," CBA added. 

Mardel Christian & Education President Jason Green told Christian Retailing that the Borders closures have far-reaching effects for the entire channel.

"It has been stated that there is an independent bookstore within 10 miles of almost all of the stores that are closing," he said. "This should be a significant opportunity for (Christian) booksellers to connect with new customers. Additional traffic, combined with the product mix and the types of customers that Christian retailers serve, should provide new opportunities to minister.

"Our hope is that customers who shopped at Borders will find our stores to be an uplifting, inviting place for them to shop," Green added. 

Munce Group President Kirk Blank said that the Christian retail channel "will be impacted in some way."

"After a careful analysis of the markets where Borders have closed stores, we know that there are over 50 markets where Munce Group stores continue to serve that market," he told Christian Retailing. "We have distributed this list of Munce Group stores who are in these markets to our supplier partners, and asked that they provide additional attention to the vital stores. Whether that means an additional visit from a field sales rep, an extra call from telesales or a refreshed look at the importance of independent Christian stores, this is now the time."

Munce Group has 512 member stores, nearly 400 of which serve their zip code and five surrounding square miles exclusively, Blank said.

Parable Group CEO Steve Potratz told Christian Retailing that Borders' bankruptcy "should be a wake-up call for retailers and landlords alike."

Borders was late to embrace change, he said. "This situation should cause Christian retailers to observe closely the changing marketplace and take decisive steps to address that change. Also, Borders is an example to use with landlords who are not willing to re-negotiate rent. It provides a great opportunity to show our landlords the difficulties we are facing in the changing book industry."

Meanwhile, Christian publishers are among many publishing houses owed at least $230 million by Borders, which listed total debt of $1.29 billion and supposed assets of $1.275 billion, Bloomberg reported. 

Owed $1.9 million, Zondervan was among the top 20 publishers on Borders' creditors' list. The parent company of Zondervan, HarperCollins was owed $25.8 million. The chain owed Hachette Book Group—the parent company of FaithWords—$36.9 million, while Howard Books' parent company, Simon & Schuster, was owed $33.75 million. Additionally, Random House—the parent company of Multnomah Books and WaterBrook Press—was owed $33.5 million.

Baker Publishing Group Executive Vice President of Sales and Marketing David Lewis told Christian Retailing that the company "will lose money like most publishers, but the amount will not be disruptive to our ongoing business practices."