Independent Bookstore Statistics
Sales at independent bookstores rose nearly 5 percent in 2018, with average annual growth of 7.5 percent over the past five years. The average annual revenue of independent bookstores in the US is $634,000. Independent bookstores outperform chain bookstores, with a 3.2% higher net profit margin. Independent bookstores brought in $697 in revenue daily, processed 14 transactions per day, and customers spent an average of $48.24 per transaction.
Profitability and Success Factors
Bookstores need a gross margin of about 40 percent to be profitable. Urban independent bookstores tend to fare better due to higher foot traffic and a larger customer base. Independent bookstore owners typically earn salaries ranging from $40,000 to $100,000.
Considerations for Owning a Bookstore
It’s crucial to carefully manage expenses like rent, inventory, wages, and utilities. Owners curate book selections to meet customer demands and optimize profitability. Careful financial planning, efficient inventory management, and understanding cost drivers are crucial for the success of an independent bookstore.