Stores that pursue relationships with local churches—as advocated by CBA—are seeing an increase in business.

Nearly half Michelle Brown's 2010 revenue at her Word of God Christian Resources store in Elizabethtown, Ky.—which has a section dedicated to the category—came from church supplies.

"I go to every church and say, 'I will give you a 5% discount, pay shipping and deliver the material to you,' " Brown said. "A lot of churches don't realize what a local Christian bookstore can do. We research the best prices and products. We need our churches or we wouldn't be here."

In its annual report for 2010, released earlier this year, CBA noted that stores taking part in its survey that reported doing well were often working hard to connect with local congregations—and urged other retailers to follow suit.

"If I'm only making 20% margin on something, it's better than making nothing at all," Brown said. "Smaller churches are faithful customers. Nobody's on staff (full time), nobody does the Internet. They just say, 'This is what I want and tell me what I need.' "

Mardel Christian & Education saw a 21% increase in category sales between 2008 and 2010, said Dylan Hillhouse, senior buyer for the Oklahoma City-based chain. He said these products are fairly predictable, even those classified as seasonal, which is why the chain is looking at building closer relationships with churches.

Read the full report in the July issue of Christian Retailing.

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