Early in my life, I learned to love reading. I would search flea markets for Nancy Drew books and Walden Books at the mall was awesome. (Yes, back in the day, I would have used that word.) My parents were very keen on education and my mom enjoyed reading, so books were something they would invest in for me. My tastes have evolved throughout the years and there are periods — college, career — where I didn’t take time to read. Along with my tastes, the publishing industry has changed significantly.
In the 1980’s, malls were the place to hang out (checkout “Stranger Things” to see the appeal) and Walden Books was a mall-based shop that was acquired by Borders Group (traded on the NYSE under BGP). Borders was a multinational book and music retailer back in the day, similar to Barnes and Noble (formerly traded under the symbol, BKS). They were both standalone, large book superstores.
Other than those two large stores, local bookstores and the library were the main outlets for books. That is until the internet.
In 1994, Jeff Bezos incorporated Amazon.com (AMZN) and based on his research, books were the most logical product to sell initially online. Amazon is now the superstore for everything but started as an online bookseller, selling the world’s largest collection of books. According to reports, Amazon currently sells books at a loss to draw people in for their higher margin items. Book buyers will typically find the same book costs less at Amazon than other book outlets, particularly brick and mortars.
New technology competes for entertainment time. Prior to the internet, books competed for eye time with TV and movies. Now, downtime has YouTube, owned by Google (GOOGL), Facebook, Instagram (both owned by Meta Platforms under symbol META) and TikTok (owned by the Chinese company ByteDance, which is not traded in the United States) all vying for the same eyes. On a side note, “Booktok” thrives on TikTok with readers reviewing, discussing and posting reels about books. TikTok videos have led to several books making it onto The New York Times Bestseller list.
In addition to physical books, audiobooks and e-readers are used to read books. Barnes & Noble has the Nook and Amazon has the Kindle. Both use a special technology to mimic words on paper to make e-readers easier on the eyes. Audible (a wholly owned subsidiary of Amazon) permits readers to listen to a book then start up and leave off at the same place on their Kindle book.
The advent of the internet has allowed for more self-publishing through Amazon or other outlets. Without the need for a physical book, marketing (do it yourself, see Booktok above) and a huge publisher, more writers can become indie authors. One of the most popular American authors, Colleen Hoover, started as an indie author.
There is still a brick-and-mortar bookstore, Barnes and Noble, but it is now owned by Elliott Advisors, out of the United Kingdom, which also owns the largest bookstore in the UK, Waterstones. According to its website, Barnes and Noble “serves 600 communities in all 50 states and remains the No. 1 bookseller in the United States.” We have our own Barnes and Noble here in State College, on Benner Pike and one in Altoona, in Logan Town Center.
In State College, we have one independent bookseller, The Squirrel & Acorn Bookshop, which opened in the fall of 2022. Located at 103 S. Allen St., it has a quaint, downtown feel that has been from downtown stores in recent years. We also have Webster’s Bookstore Café, 133 E. Beaver Ave, which is a used bookstore with a café and a popular community gathering spot.
Physical book sales still outsell eBooks and I do have a Kindle. For me, nothing beats flipping real pages of a book while having a cup of tea. It is a level of comfort of which, hopefully, I will never grow tired.
Judy Loy is a Registered Investment Advisor, ChFC®, RICP® and CEO of Nestlerode & Loy, Inc. in State College.
All investing is subject to risk, including possible loss of the money you invest. Nothing in this article should be construed as investment or retirement advice. Always consult with a professional advisor and consider your risk tolerance and time to invest when making investment decisions. Review your personal situation with a professional before planning any gifting or estate planning.
