Thomas Nelson sends pop-up alerts, Spring Arbor Distributors encourages broader selection

Suppliers have been stepping up efforts to help independent Christian retailers remain competitive, as other channels continue to erode their sales base.

Thomas Nelson's Hot Off the Press offers pop-up alerts on product-related breaking news to stores that download the system created by the publisher's Christian retail sales division. The application will also send out notices of upcoming author appearances and features a link that allows retailers to place orders if they decide to increase inventory levels in the light of what they learn.

In addition, the Christian sales group has created TNIndies on Facebook and Twitter to enable stores to interact and learn more about using social media in their businesses.

"We are opening up a line of communication that will be a 'win-win' for retailers, and Thomas Nelson in helping our customers increase their consumer traffic and customer base," said Russ Schwartz, director of sales for Thomas Nelson Christian independent retail. "In these fast-changing times at retail, we all need to make sure we are adapting to meeting our customers' needs."

The Hot Off the Press service is similar to Spring Arbor Wire, launched last year by Spring Arbor Distributors (SA), whose rebranding, with a broader focus, has been a success, according to Skip Prichard, president and CEO of parent company, Ingram Content Group.

The LaVergne, Tenn.-based business has been "going well" since getting a makeover last summer, he told Christian Retailing. Prichard attributed that in part to SA's having increased the range of gifts, family DVDs, music and church supplies available to help differentiate stores. Books that "might not be deemed 'Christian' " like Laura Hillenbrand's Unbroken—the biography of Olympian and war hero Louie Zamperini—had done well for some stores, Prichard said.

He encouraged Christian retailers to consider expanding their children's resources, too, as parents were "looking for the bookstore to curate and provide value, to tell me what is acceptable." That could include other than specifically Christian materials. "The Very Hungry Caterpillar is not something that you would call a Christian book, but it's a wonderful book."

Such resources were more readily available to Christian stores through SA, he said, since IGC had restructured so that Christian products could be better distributed to any channel and other general market products could in turn be accessed by Christian stores. "We want to do everything we can to help Christian stores survive and thrive," said Prichard.

In a separate move, Thomas Nelson is also running an "On The House" sweepstakes in a promotion designed to help brick-and-mortar retailers, including Christian bookstores, increase traffic to their stores.

Running through April 30, the sweepstakes will "expose customers to wide selection of Thomas Nelson's books, with a chance to win great prizes"—according to Thomas Nelson Senior Vice President of ABA Sales Rick Spruill, who came up with the idea.

Customers who purchase a title from the Nashville-based publisher with a sweepstakes sticker in the back will win one of thousands of prizes, including electronic tablets, e-readers, a Thomas Nelson library and e-book downloads. A free mail-in entry option is also available, and winners will be randomly drawn to receive the prizes. 

CBA leader says round of veteran closures underscores need for 'optimum level' performance

More than two centuries of Christian retailing have come to an end with the closure of several long-standing stores whose owners are familiar to many in the industry.

Internet and digital sales were cited for the shuttering of well-known stores from California to Connecticut that between them clocked up 200-plus years' business.

Ray Primus closed the last of what were once his three Mustard Seed Christian Books & Gifts outlets, in Waterbury, Conn., in January, after 35 years. The same month saw the doors close at Treasure House Christian bookstore, operated in Longview, Wash., since the 1960s by Calvary Community Church.

February marked the final days of business for The Door Christian Bookstore in San Carlos, Calif., after more than 30 years, while south in the state Long's Christian Bookstore in Rancho Cucamonga was preparing to close down by the end of last month after more than a quarter century.

Abilene Educational Supply and Christian Bookstore on the campus of Abilene Christian University in Abilene, Texas, is preparing to go out of business next month after 60-plus years.

In addition to the Internet, big-box competition and the economy, Primus said that a lack of support from local churches had been a factor in the closure of his stores.

"It amazes me that the pastors of these churches preach to their people to give them their money to further the kingdom of God, but when it comes time for them to buy Christian items, they often go to a secular bookstore or Amazon.com, both of which sell the satanic Bible, the Koran, New Age books and porn.  

"It is like they are voting to keep those outlets available because they can save a buck or it's easier than to support their brothers in the Lord who are sacrificing their lives bringing the Word to people who might be misled by non-Christian outlets," Primus added. "On top of it all, our stores send people to their churches and help keep them going."

In an open letter to customers, Door owners Mike and Kathy Dunn said that they had not been able to withstand the storm of the economy "nor the Internet Goliath." Online retailers were "too big of foes for a mom-and-pop store."

CBA Chairman George Thomsen warned against reading too much into the closure of a group of longtime stores.

"I do not think it wise to try and jump to a single conclusion," he said. "Stores close every year for different reasons. In some cases, it could be a problem with a lease such as an increase or termination. In others, it may be the ownership is older and wants to retire, but does not have any younger family members who want to continue in the business.  

"Certainly in recent years there have been stores that have closed due to the impact of the down economy," Thomsen added. "Others have not embraced new realities or made necessary changes fast enough. If it says anything to our industry, I believe it is that this is all the more reason for retailers to be sure they are doing everything they can to operate at optimum level."

Engaging with God, customers, suppliers is focus of 'highlight' event by 'Christian Retailing' magazine

Church and independent Christian bookstore managers and staff from across the country are due to gather in Orlando, Fla., this month for three days of business and inspiration.

Managing Bible, book and gift categories and creating a successful customer experience are among the issues to be addressed at Christian Retailing's Retailing ReBoot 2011. The event themed "Engaging Without Limits" will take place April 26-28 at the Florida Hotel and Conference Center.

In addition to education sessions helping retailers connect more with suppliers and customers, there will be worship and inspirational messages as well as a suppliers' exhibit area. The program will also include an authors' reception and the announcement of the winners of the magazine's 2011 Retailers Choice Awards.

Originally organized solely for church stores and formerly called The Gathering, the event has been renamed this year to reflect its inclusion of independent retailers and the need for stores to "reset" for the future, said Christian Retailing Publisher Dave Condiff.

"The old ways of running things don't meet the current challenges and future needs of the industry," Condiff said. "But smart stores are being proactive about making changes. We want to come together to learn from and encourage each other."

For Dennis Woods, manager of Water's Edge Resource Center at Sugar Creek Baptist Church in Sugar Land, Texas, the Christian Retailing event is "the only meeting in my travel budget. Although there are other places and venues to see and purchase product, I choose this meeting because it has both the gift vendors as well as the publishers that are willing to cater to my store and other church-owned bookstores. 

"It is also a place to meet and share with others who are struggling with the same challenges and opportunities I face on a daily basis," Woods said.

Susan Chipman, director of retail services at Granger Community Church in Granger, Ind., said: "It is simply the highlight of my business year. I've always come back with renewed energy to approach our ministry/business with fresh eyes. The connections that I've made with fellow retailers and vendors has been invaluable to the success of our store." 

The event offers a "unique combination of fellowship, fresh ideas and spiritual encouragement," said Janet McKinley, manager of The Bookstore at First Baptist Church of Atlanta. It is "an exceptional experience that is not duplicated anywhere else," she said. "The relationships that are formed there create a support system that I rely on throughout the year."

For more information, visit www.christianretailing.com/index.php/retailing-reboot/.

Pat Williams—Orlando Magic co-founder and author of numerous Christian books—has been diagnosed with bone cancer. Williams, 70, was diagnosed in January after an extensive physical the Magic require of all executives. Multiple myeloma is inoperable and incurable, but sometimes can be treated with chemotherapy to the point of inactivity. Williams has written more than 70 books, including his latest—Coach Wooden: The 7 Principles That Shaped His Life and Will Change Yours—released in February by Revell/Baker Publishing Group.    

Christian novelist Leisha Kelly was killed in a car accident Jan. 25 near Fowler, Ill. She was 47. Her 16-year-old son, Justice, also died in the accident. A resident of Clayton, Ill., Kelly authored 11 books, including The House on Malcolm Street, published by Revell/Baker Publishing Group in September 2010.    

Tyndale House Publishers will publish the novelization of Courageous—the follow-up from the makers of the hit movie Fireproof—which will release in theaters nationwide Sept. 30. Based on the screenplay by Alex and Stephen Kendrick, Courageous: A Novel—to be released in August and retail for $14.99—will be written by best-selling author Randy Alcorn. Versions of the Kendricks' The Love Dare (B&H Books/B&H Publishing Group)—a plot device in Fireproof and published in 2008—have sold more than 4 million copies.    

A division of Salem Communications Corp., Salem Consumer Products has acquired an online bookstore that specializes in a Reformed selection of evangelical books and Bibles. Evangelical Bible Book Store, ebiblebookstore.com, focuses on resources in areas such as history, Puritan writings, science and creation, as well as theology and doctrine. Salem Consumer Products also owns another online Christian bookstore—ChristianBookstore.org—with a catalog of more than 100,000 Christian products.

Christian music makers note some positives in the changing industry

Together with continuingly strong in-store sales, the changes are seen by many to signal opportunities for the category despite the concerns of digital sales.

While industry observers say lower music sales has forced downsizing at the major labels, the growth of the digital market has seen small labels emerging and nontraditional sources of music coming to the forefront. 

Among the indicators: A California church's two small yet thriving labels have been gaining attention; the world's largest Christian publisher is looking to expand its music distribution; and a multi-artist compilation album from a New York Times best-selling author was recently independently released. 

Ed Leonard, whose term ends this month as Gospel Music Association president and board chairman and who is Daywind Music Group's president, told Christian Retailing that "it is much easier to make and promote music inexpensively these days."

Small labels are emerging because the cost of recording is going down, added Leonard, noting that Vineyard Music recently signed a distribution arrangement with New Day. "With today's technology, anyone can record an album in their basement, garage or on their bus for that matter,"  he said. "Paired with the use of the Internet for getting information out to audiences, it's possible for a small label to do extremely well."

One good example is Jesus Culture Music and its sister label, Bethel Music—both run independently, but part of Bethel Church in Redding, Calif. Featuring worship leaders Kim Walker and Chris Quilala, Jesus Culture Music—stemming from a youth and young-adult movement that began at Bethel Church in 1999—has sold more than 100,000 albums online and at events. 

Last year, Kingsway entered into an exclusive, long-term recorded music, marketing and distribution agreement with both labels—making albums available for the first time to Christian and general market stores. Come Away—Jesus Culture's fifth release—was its first recording to be released to both physical and digital retailers, last fall.

"Having a physical presence and marketing focus at CBA retail is critically important to creating awareness of Jesus Culture to the broader Christian consumer," Kingsway Vice President North America Steve Nicolle told Christian Retailing. "I think with the major labels paring down so significantly, there is a real opportunity for smaller or independent labels."

Longtime Christian music artist and multiple Dove winner Michael Card—whose, Luke, the first of four Gospel-focused "Biblical Imagination" books, to be released this month by InterVarsity Press along with a companion CD from Discovery House Music—agreed.

The growing number of small labels is "just one of lots of signs the way the music world is changing," Card told Christian Retailing. "There are some bad things to it, but I think it's mostly good. This is the best time ever to be a consumer in terms of music. ... Bit I think it's all about the technology. The big record industry was based on CD sales, and none of them saw it coming."

Card added that there were a lot of benefits to small labels. "There's a lot more freedom to be creative," said Card, whose music is distributed by Covenant Artists, which he considers an independent label. "When there were just a few big record companies and a lot of it had to do with getting songs on the radio and selling records, that really kind of dwarfed your creativity. "

Meanwhile, Thomas Nelson is looking to expand itsmusic business after entering distribution of the category last year. The publisher released Women of Faith Worship—featuring 10 studio-recorded tracks by the Women of Faith (WoF) worship team—in 2010, the first time the Nashville-based publisher distributed music from its conference brand. 

"We understand Christian retail and … are well-qualified to help fill the void left by a diminishing music industry, especially as it relates to sales to Christian retail and independent bookstores," said Tom Knight, Nelson's senior vice president of Christian retail and ministry development group. 

Before the new recording, WoF projects were distributed by Integrity Music and more recently by Word Distribution. The music distribution extends beyond WoF as well. Knight said the publisher is "open to discussion with labels as to sales, retail marketing and distribution" of Nelson products.

Spring Arbor's expansion of music distribution in the past year—including exclusive delivery of veteran singer Steve Green's latest release—has been a help to stores and the music industry, said Skip Prichard, president and CEO of parent company Ingram Content Group.

"Christian music is not dead as a category. It is alive," he said. But "artists are struggling, with music labels that are dropping them. We want to help in any way we can." 

Elsewhere, Karen Kingsbury's Songs That Inspire Karen Kingsbury was released in November by Nashville-based multimedia company in:ciite Media. The CD features 10 songs selected by Kingsbury from Mandisa, Matthew West, Britt Nicole and Mark Schultz.

Chris Thomason, co-founder and president/CEO of in:ciite, told Christian Retailing that his company has also done music, short film and DVD projects with well-known Christian authors such as Max Lucado, Erwin McManus and Beth Moore as well as several music artists, including Jeff Deyo, Lenny LeBlanc and Travis Cottrell.

"The word 'label' is becoming less and less relevant to describe what we do," said Thomason, who has 20-plus years experience developing music and multimedia brands, including 13 years at Integrity Music. "The important distinction here is that music labels used to be in the business of grabbing shelf space, on the radio and in the record store. 

"Now, the music industry needs to realign and be in the business of finding, connecting and leading groups of people who want to follow content and connect with the other people who want to do the same," he added.

Christian music sales strong in 2010

Christian retailers fighting the continuing decline of music sales made strides in 2010, according to new sales figures. 

Greg Bays—chairman of the Christian Music Trade Association, which tracks the sales of Christian music—reported that in a year when music sales in the overall industry fell 19.4%, 2010 unit sales in Christian retail dropped by only 9.2%. At the same time, sales of Christian music in mainstream outlets were down 22.4%, while Christian retail chains only saw a 4.4% sales decline in the category. 

"Across the Christian retail market, it appears that the chains have been more consistent in increasing their store counts and their overall market share,"
Bays told Christian Retailing. 

"Retailers—including the chains and many strong independents—have succeeded when they have been aggressive in focusing on music as a significant category, which drives traffic and sales at Christian retail."

Physical CDs still account for a clear majority of the sales of Christian/gospel music, he added. Bays, senior vice president, sales and marketing for EMI CMG Distribution, noted that physical CDs made up 73.4% of sales in 2010—slightly down from 78% of overall Christian music sold in 2009.

As far as digital sales, Christian music saw a 7.6% increase compared to a 5.8% rise in the overall industry. In 2009, Christian music's digital sales grew 28.3%, Bays said. "As any new format/configuration matures, sales growth associated with that format year over year will slow down over time." 

The three top-selling Christian albums last year were Tonight by TobyMac (Forefront Records/EMI CMG), Here I Am by Marvin Sapp (Verity Records/Provident-Integrity Distribution and Awake by Skillet (Ardent Records/INO Records/Provident-Integrity). 

GMA Chairman of the Board Ed Leonard told
Christian Retailing that year-end figures indicate that "music is alive at Christian retail, and deserves to be a significant part of a Christian store's product mix."

"The consumers who frequent Christian retail are still buying CDs," he said. "As sales of CDs at mainstream retail continue to slip, there is increased opportunity for Christian retailers to take advantage by carrying a great assortment and promoting music."

Chris Tomlin and TobyMac have each received six nominations for the 42nd Annual Gospel Music Association Dove Awards, while producer Wayne Haun topped all nominees with seven nods for the second year in a row.

Jason Crabb and Chris August nabbed five nominations each, while Francesca Battistelli, Marvin Sapp and Israel Houghton each received four nods.

Tomlin was nominated for Worship Song of the Year and Song of the Year for "Our God"; Special Event Album of the Year and Praise & Worship Album of the Year for Passion: Awakening (sixstepsrecords/EMI CMG Distribution); Male Vocalist of the Year; and Artist of the Year.

TobyMac received nods for Artist of the Year; Song of the Year for "Get Back Up"; Rock Recorded Song of the Year for "Showstopper"; Rock/Contemporary Recorded Song of the Year for "Tonight"; Pop/Contemporary Recorded Song of the Year for "Get Back Up"; and Rock/Contemporary Album of the Year for Tonight (Forefront Records/EMI CMG).

Besides Tomlin, the Male Vocalist of the Year nominees were Chris August, Doug Anderson, Jason Crabb, reigning two-time winner Brandon Heath, Israel Houghton and Marvin Sapp. 

Female Vocalist of the Year: Audrey Assad, Natalie Grant, Britt Nicole, Janet Paschal, Kerrie Roberts, Laura Story and Francesca Battistell—who won last year. 

In addition to TobyMac and Tomlin, Artist of the Year nominees were Francesca Battistelli, Jason Crabb, Ernie Haase & Signature Sound, Natalie Grant and Marvin Sapp. New Artist of the Year: Audrey Assad, Chris August, Forever Jones, John Mark McMillan, No Other Name, Kerrie Roberts and Kristian Stanfill.

Besides "Our God" and "Get Back Up," Song of the Year nominations went to "All of Creation" by MercyMe; "Beautiful, Beautiful" by Francesca Battistelli; "Hold My Heart" by Tenth Avenue North; "Lead Me" by Sanctus Real; "Let the Waters Rise" by Mikeschair; "Love Come Calling" by Triumphant Quartet; "Sometimes I Cry" by Jason Crabb; and "Starry Night" by Chris August.

Group of the Year: Ernie Haase & Signature Sound, Gaither Vocal Band, MercyMe, Mikeschair, Sidewalk Prophets and Tenth Avenue North.

The winners will be announced April 20 at Atlanta's historic Fox Theatre—the first time the show will take place outside of Nashville. To be hosted by Sherri Shepherd, co-host of ABC's The View, the show will air Easter Sunday, April 24, on the Atlanta-based Gospel Music Channel. 

BeBe and CeCe Winans win two GRAMMYs

BeBe and CeCe Winans won two GRAMMYs during the 53rd Annual GRAMMY Awards, held Feb. 13 in Los Angeles.

The brother-and-sister duo were recognized in the Best Gospel Performance category for "Grace" and Best Contemporary R&B Gospel Album for Still (B&C Records/Malaco Records). 

For the second year in a row, Israel Houghton was honored in the Best Pop/Contemporary Gospel Album category, this time for Love God. Love People. (Integrity Music/Provident-Integrity Distribution). Houghton was recognized last year for The Power of One (Integrity Music/Provident-Integrity). It was the fourth straight year he has won a GRAMMY.

Hello Hurricane by Switchfoot (Credential Recordings/EMI CMG Distribution) won the Best Rock or Rap Gospel Album category for the five-member band's first GRAMMY, while "It's What I Do" by Jerry Peters and Kirk Whalum was recognized as the Best Gospel Song. 

Diamond Rio's The Reason (Word Records/Word Distribution) won the Best Southern, Country or Bluegrass Gospel Album, while Downtown Church by Patty Griffin (Credential Recordings/EMI Music Marketing) was recognized in the Best Traditional Gospel Album category.

A tribute to Aretha Franklin—who was recovering from surgery—featured a performance by Martina McBride, Christina Aguilera, Jennifer Hudson, Florence Welch and gospel singer Yolanda Adams.

Retail group involved in move to require sales tax of online merchants

CBA has joined the fight for legislation that will "level the playing field" for brick-and-mortar retailers competing with online booksellers.

The retailers' trade association is urging mSembers to contact their local representatives to support the Main Street Fairness Act, which would enable states to require online retailers to collect and pay sales taxes.

CBA has posted draft letters backing the proposal at a new Advocacy & Action page at its Web site, following a meeting in Washington, D.C., with other retail groups concerned about what they see as unfair competition.

The organization has contacted representatives, senators and media in Colorado—where it is headquartered—about the issue following Amazon.com's letting go of its affiliates in the state. Colorado has approved affiliate nexus legislation that would require sales tax from locally based representatives of out-of-state businesses.

CBA has also voiced opposition to a proposal in Tennessee, which would exempt Amazon.com from paying sales tax there even though it is building a distribution center in the state, said Riskey. The campaign featured a full-page ad in The Knoxville News Sentinel by The Alliance for Main Street Fairness.

Following the announcement that Borders was going into bankruptcy, Danny Diaz—spokesman for the alliance, a coalition of small businesses—said that the chain was "the latest casualty on main street as Amazon.com and other online-only retailers continue to exploit a loophole ... creating an unlevel playing field that is bringing brick-and-mortar stores to their knees."

In support of the campaign in his state, Link McGinnis, owner of Cedar Springs Christian Store in Knoxville, Tenn., told the newspaper that the business his parents had founded 34 years ago had been "growing strong until Amazon came on the scene."

Now the Internet retailer was his biggest competitor, and his store's staff had been cut from 100 to 65 in the last six years. "It's very much impacted our business," McGinnis said. "You need to level the playing field." 

CBA Executive Director Curtis Riskey was part of the Advocates for Independent Retail (AIR) summit in January, which also included leaders from independent toy, pet, flower, bicycle and hardware markets. "All of these retail channels have been affected by discriminatory and unfair taxation laws that give pricing advantage to out-of-state businesses," Riskey said.

Twenty-four states currently require sales tax from Internet—only retailers, Riskey said, and many others were considering similar legislation. "Taxes should be levied fairly," he said.

David Grogan—senior public policy analyst at the American Booksellers Association, which convened the AIR meeting—said the organization was "very pleased" to work with CBA on the issue, which was one of mutual interest.

"Working toward sales tax fairness is a key issue for our members," he said. "The goal is leveling the playing field, so that our member bookstores don't start the day off with 6% to 10% disadvantage—whatever the sales tax rate may be in a particular state—even before they open their stores. 

"Each year, the situation only gets worse as online sales grow, and as more and more people erroneously believe the Internet to be a haven for 'duty-free' shopping—most not knowing that they owe a use tax for out-of-state purchases," Grogan added.