Breathing New Life into Bookstores; Public and Private Sectors Work to Save Japan’s Ailing Industry

TOKYO: It’s been four months since the government opened a new chapter in its efforts to support and revive bookstores. But it’s still unclear whether the story will have a happy ending.

The Ministry of Economy, Trade and Industry has appointed a project team for the promotion of bookstores, under the direct supervision of the head of the ministry.

Although there is a growing awareness that bookstores are important cultural centers, many stores across Japan are struggling financially and closing their doors as sales of books and magazines remain low.

During a forum on print culture and the revitalization of bookstores organized by The Bunka News on Thursday, Minister of Economy, Trade and Industry Ken Saito expressed his determination to support these enterprises.

“A lot of young people don’t realize how great bookstores are, and young people who buy what they want online will make up a larger part of the population,” Saito said.

“I want to promote support for these stores before they become an endangered species.”

Also speaking at the forum was Toshikazu Yamaguchi, president of the charitable foundation Characters Culture Promotion Organization and president of The Yomiuri Shimbun Holdings.

“Bookstores in regional communities and bookstores in urban areas where rents are rising are facing increasing pressure.

“The nation must address this issue as it develops,” Yamaguchi said.

According to the Japan Publishing Organization for the Development of Information Infrastructure, there were 15,602 bookstores in Japan in fiscal year 2013, but in fiscal year 2023, that number dropped to 10,918.

Physical stores are struggling with problems such as low profit margins from book sales, the growing importance of online stores, and a shortage of bookstore successors.

Currently, one-quarter of all municipalities in Japan do not have a single bookstore.

Amid growing concerns that if left unresolved, the situation could “deprive people of the opportunity to engage with the written word”, a project team has been established to develop ways to promote and maintain these knowledge centres.

The Basic Policy of Economic and Fiscal Management and Reform, approved by the Council of Ministers in June, also assumed taking measures to revive bookstores and promote written and printed culture, including books.

Inventory Search Experiment

The publishing industry and bookstores themselves have taken steps to increase the number of profitable stores and improve their convenience for customers.

Kinokuniya Co., Culture Convenience Club Co., which operates the Tsutaya bookstore chain, and major book wholesaler Nippon Shuppan Hanbai Inc. jointly founded Booksellers & Co.

It will create channels that will allow bookstores to proactively buy the books they want on their shelves. The goal is to increase bookstores’ profit margins from around 20% to 30% on book sales.

Elsewhere, the Japan Publishing Industry Foundation for Culture (JPIC), an organization established by publishers, bookstores and book wholesalers, played a key role in the proof-of-concept testing of a cross-bookstore search system that began in June.

Customers who can’t find the book they need in a store have difficulty determining whether nearby stores have it in stock, so they often look to purchase it online.

During the current trial period, customers can use their smartphones or other devices to check whether specific books are available in the store.

The study, which is scheduled to run for two years, includes large bookstore chains Book1st Corp. and Books Ogaki Co.

“We would also like to ask other stores to participate,” a JPIC official told The Yomiuri Shimbun.

The heavy burden of stores

The Institute of Publication Research said on Thursday (July 25) that estimated sales of publications, including print and electronic, in the first half of 2024 fell 1.5% compared with the same period last year, reaching ¥790.2 billion.

For print publications alone, the figure fell 5.0% to ¥520.5 billion.

The decline was particularly noticeable in the case of magazines, which previously constituted the main source of support for the bookselling business.

Fees for cashless payments are also one of the factors burdening bookstores in recent years.

The president of the company that runs the Konno Shoten bookstore in Tokyo’s Suginami district wants additional support for businesses like his.

“There are readers who want to see the bookshelves with their own eyes and buy books,” he said.

“Bookstores are struggling with rising labor costs and other expenses, so the business structure itself cannot continue to function this way.

“I want the government to consider additional support measures” – The Japan News/ANN