CALIFORNIA STATE UNIVERSITY, NORTHRIDGE Has E-Commerce Changed the Los Angeles Bookstore Landscape?

CALIFORNIA STATE UNIVERSITY, NORTHRIDGE

Has E-commerce Changed the Los Angeles Bookstore Landscape?

A Thesis submitted in partial fulfillment of the requirements For the degree of Master of Arts in Geography

By Andre Balanji

December 2015

The thesis of Andre Balanji is approved by:

______Dr. Soheil Boroushaki Date

______Dr. James Craine Date

______Dr. Yifei Sun, Chair Date

California State University of Northridge

Acknowledgements

I would like to thank the teachers and faculty at Northridge for making my stay a very educational and pleasant one. I have learned so much and have been able to progress my knowledge to a level I never thought possible. I would further like to thank Dr. Soheil

Boroushaki, for advising my through my program and helping with my thesis. I also would like to thank Dr. James Craine, for always being there helping me with my studies and my thesis. I would especially like to thank Dr. Yifei Sun for being my chair and helping me with this whole process and helping me finish and perfect my thesis.

I also would like to thanks my classmates for always given me constructive criticism and being there to help. Especially Tina Markary for helping me throughout the whole process, and allowing me only better my knowledge of map making.

I finally would like to thank my friends and family for always being there and supporting me through this whole process.

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Table of Contents Signature Page ...... II Acknowledgements ...... III Abstract ...... VI Introduction ...... 1 Background ...... 3 Objective ...... 4 Research Questions...... 5 Study Area ...... 6 Expectations...... 8 Limitations ...... 9 Literature Review ...... 10 Books ...... 10 Shopping ...... 11 Bookstores ...... 13 E-Commerce ...... 15 E-books vs. Books ...... 17 Book Response ...... 20 Online Book Retailers ...... 21 Data and Methodology ...... 24 Finding Bookstores...... 25 Mapping the Bookstores ...... 26 Maps ...... 27 Survey ...... 34 Results ...... 37 Map Results ...... 37 Survey Results ...... 40 Interpreting Survey Results ...... 44 Bookstore Owners ...... 47 New Changes ...... 51 Notable Closed Bookstores ...... 53 Vacant Stores ...... 55 Conclusion ...... 58 References ...... 61

Table of Figures:

Figure 1 Map of LA County ...... 7

Figure 2 Independent Bookstore Chart ...... 22

Figure 3 All Stores ...... 27

Figure 4 Open Stores ...... 28

Figure 5 Closed Stores ...... 29

Figure 6 Income vs. Open ...... 30

Figure 7 Income vs Closed ...... 31

Figure 8 Education vs Open ...... 32

Figure 9 Education vs Closed ...... 33

Abstract

Has E-commerce Changed the Los Angeles Bookstore Landscape?

Andre Balanji

Master of Art in Geography

Over the past few years with the rise of e-commerce, bookstores everywhere have been closing down. This study aims to see if e-commerce has had an effect on the closing of these bookstores. This study used consumer surveys, interviews of bookstore owners, and GIS techniques to find the effects e-commerce has had on bookstores in Los Angeles County. It appears consumers prefer e-commerce as the form of buying books, and most but not all bookstore owners have had a tough time competing. Also income and education levels proved to be a factor in the opening of bookstores but not in the success of a store. Bookstores have closed everywhere across Los Angeles, and it is evident that the landscape has changed.

Introduction

As long as there have been humans around there has been shopping. Marketplaces have existed as early as the ancient Greeks. As demand, population and currency grew so did the need for larger and more effective shopping marketplaces. By the mid 1800’s department stores and malls began to appear all over the map. Soon enough there where stores for every one of our needs.

Over time we advanced our thinking and figured more efficient ways to go shopping. Soon enough by the beginning of the 21st century, we were so technologically advanced that we can now do almost all our shopping online. Now we can just sit back at home and order what it is we wanted and it would just be delivered to our houses. On the other hand as online shopping (e-commerce) grew, the need for brick and mortar stores began to decrease. We no longer need to go to stores for things such as books, movies, and electronics. We can sit at home, click a few buttons, and save money and time.

Now books have all but completely become electronic. Paper books have become ancient. Why would we drive, pay extra, and take up space in our homes, when books can be at our fingertips at a moment’s notice? This also applies for movies: who would need to rent a movie from an actual store, when you can watch whatever it is you want whenever you would like?

You have retailers like Amazon and Walmart, taking over the whole market. They are selling whatever you need for a cheaper price and at your convenience. This is why I believe e-commerce has completely changed the shape and landscape of bookstores in

Los Angeles. Bookstores everywhere are slowly going out of business. Even the biggest

chains like, Barnes and Noble and Boarders have closed so many stores down. These large companies do have the ability to use e-commerce as well, however it has not really helped their business models. If these larger bookstores cannot keep up, what are the smaller more independent stores to do? What if these companies cannot compete on the e-commerce side? This is the change I believe that is happening. These smaller stores are closing around everywhere in our city and there is not much we can do about it. Not all are closing surprisingly; there are a select few that are still staying in business and actually growing their business. This paper will also look to see if there are any reasons why these stores are succeeding where others are failing.

Certain studies (Kamel, 2008, Brychan, 2010) have aimed to learn about what people prefer when it comes to shopping, whether they want to purchase things online or go to a store, however the link to a changing landscape has not been very well explored.

Also since it has only been a few years since the boom of the online shopping, there has been a limited amount of study areas. I will aim to research how many stores have closed down over the recent years in the Los Angeles vicinity, and to see if e-commerce has been the common denominator.

Background

E-commerce has only been around for a short period of small time. The emergence of e-books as well has only happened recently. Yet the impact they have had has been huge. It has changed business mentality and development. However, it has had a large effect on brick and mortar stores. Bookstores, movie stores, music stores all alike have taken a large hit in sales. Many independent bookstores that were unable to deal with the change of e-commerce are going out of business. There have been a few studies

(Wagner, 2007, Mehdi, 2013) done about peoples’ preference over e-commerce and e- books, but it has been too early to tell if it has had any effects on the landscape. There have been many studies showing the positive and negatives issue of e-commerce on businesses, but nothing has specifically narrowed down into bookstores and Los Angeles in general. As more time has passed, the effect of this shift in business model is becoming more and more visible. It is now clearer to see the effects, as more data is available.

Objective

The main objective of this study is to see whether or not e-commerce has had an effect on the Los Angeles landscape of bookstores. It will look into all the bookstores and see which ones are still around, those which no longer are, and those that might be on their way out. Certain characteristics of population will be looked at, such as: income and education level, to see if they have an impact on the stability of bookstores. A secondary objective will be to see why certain stores and areas of stores are able stay in business, and what it is they might be doing differently.

Research Questions

The bookstore industry is definitely changing and it is important to see why and to see what has occurred and what can be done to save the industry. The Los Angeles area is a major city in the US and has been established long enough to show the change in the industry. As a major city with a large population it is easier to see the change in the book industry as time has progressed. This study aims to answer the following questions:

1. How has the bookstore landscape in Los Angeles changed due to e-commerce?

2. Is there certain techniques businesses that are still around are doing differently to

allow them to stay in business?

3. Is there a correlation between income and education of an area, and the stability

of bookstores?

4. Do people prefer the new swing in the industry, and what are their preferences

given the new advances in technology?

Study Area

Even though e commerce and its effects are a global issue, the area that will be focused on in this paper will be the city of Los Angeles. It will encompass all the areas numbered 1-8 in Figure 1 below. It will look into all the bookstores, whether they are a general or specific store. Los Angeles has been a large and great area for bookstores and customers. Certain stores have been around for over a hundred years, some have opened only a few years ago, yet the impact they have had has been great. Not only are there general bookstores, there are many specific stores as well. Also in Los Angeles stores are not specified to one region, they are everywhere around Los Angeles, so it will be easier to see if there is a change to certain areas, or is it a problem plaguing all bookstores in all regions.

Figure 1 Map of LA County

Expectations

I believe e-commerce and e-books in general have had a negative impact on brick and mortar stores. I believe there has been a loss in sales for many of these bookstores and many of them are going out of business directly correlating to e-commerce. I also believe that certain stores, which have been able to adapt and have a large customer base, are more likely to stay in business longer. Furthermore, I believe there will be a direct correlation between income and education level and the amount of bookstores that might be available in certain areas.

Limitations

This study has a few limitations. The scope for the research is only on one county; a larger more global paper can be done. Also more factors can be looked at instead of only income and education level. Other factors such as age range, race, and so on, can be examined to see if the amount of bookstores and stability in an area are effected. Also a lot more surveys can be conducted in a wider area to get a better sample group, giving better more definite results.

Literature Review

Books

Writing has been around since the beginning of humans. It has been a long process to get to where we are now, however since the beginning of time humans have been finding a way to write down what they want. Writing is our way of giving life to the spoken language. Human beings developed language c. 35,000 BCE as evidenced by cave paintings from the period of the Cro-Magnon Man (c. 50,000-30,000 BCE) that appear to be their ways of showing daily life (Mark, 2011). As time and languages evolved so did the concept of writing things down. People began using the concept of writing as a form of accounting, in the beginning. It was for farmers and agriculturists to be able to keep track of all their sales and expenses (Texas University, year). Writing not only became a source of record keeping, but also to leave a lasting impression on generations to come. There was a lot of experiments and trials to get us to where we are now in writing. It has been a long process taking thousands of years.

Not only was getting the language of writing difficult, but there was the issue of writing it down on something that would stand the test of time. We went from cave walls, to clay tablets in Mesopotamia, to papyrus in Egypt, till we go to the first actual books in

East Asia. The Chinese experimented with writing on bamboo and interconnecting them together (McDermott, 2006). Pre-Columbian codices of the Mayans soon followed, then the wax tablets of the Romans, then came parchment, and finally we were able to create paper. However the biggest change came when the Printing Press was invented. It made

the ease of creating works a lot easier, and soon many people and ideas were being shared around the world. As the new generation of technology came about we were and are now in the modes of e-books.

The idea of writing evolved over time. It started as a business tool, however soon it became so much more. We wanted to show our ideas and thoughts, and share them with the world. Books became so important, that people were killed over the ideas they wrote and read. Books of ancient civilizations were burned in fear of causing uprising and revolutions. People would risk their lives to keep and write books because it gave everyone, no matter race or religion an equal playing field. It allowed everyone to express him or herself without worrying about their background. Books have and continue to be one of the most important parts of our culture.

Shopping

Our lives are consumed with working and buying things. Shopping is a part of our daily lives. Whether it is for food, clothes, books, etc. We work to be able to have purchasing power, and it is not much different than how it was since the earliest of humans. Since the time of the Ancient Greeks and Romans, marketplaces have been around. It started with the selling and trade of goods for the needs of the people. As time went by, the idea of consumer shopping grew. The modern idea of shopping did not start till around the 18th century (White, 2010). This came about due to the rise of purchasing power of citizens.

After consumer shopping, came the concept of department stores at the turn of the 19th Century, right before the Industrial Revolution (Glancey, 2015). As consumer needs began to evolve so did the idea of shopping. The next stage in shopping was the transition from 'single-function' shops only providing one good, to the department stores where a large variety of goods were sold, ordered and organized by departments.

Shops became clean and well maintained places. Stores were the biggest and most visited places in large cities such as London, England. People from all over the world came by to spend their money here (White, 2010). Vacationers and businessmen saw the opportunities of shops, and built them to the highest qualities, in hopes of bringing and expanding their businesses. Shops were growing everywhere, and an ever-growing range of goods to purchase was becoming available, as the century progressed.

Ever since the medieval period, the main centers of the sales of goods in England,

outside of London, had been local markets (White, 2010). However, these places

underwent huge transformations in 1690-1801, when trade passed into the hands of shopkeepers in the capital, and in provincial urban locations. As population grew, so did

the idea of shopping, it became a larger center, a place to go, and a hobby for so many

people. As economic growth, mainly due to the Industrial Revolution at the turn of the

19th-century, steadily expanded, the large middle-class grew in size and wealth now the

main population had purchase power and the demand for goods grew (Berry, 2010).

More people with different tastes increased the demand for goods and stores. Now more

shops were growing and larger department stores were being built.

We are and became so consumed by shopping, that our cities are built around shopping and business centers. We have business downtown area, and then we have

shopping centers, which are a main hub for our social lives. Shopping is one of the largest parts of our lives.

Bookstores

The spread of Christianity naturally created a great demand for copies of the

Gospels, other sacred books, and later on for missals and other devotional volumes for both church and private use (Encyclopedia Britannica, 2014). The modern system of bookselling began almost after the introduction of printing. In the course of the 16th and

17th centuries the Low Countries for a time became the chief center of the bookselling world. Books soon became a hot commodity, and with the introduction of the printing press bookstores began to open up. The earliest printers were also editors and booksellers; but being unable to sell every copy of the works they printed, they had agents at most of the higher societies of education, to be able to spread the word and sell their goods. In the US bookstores were available in the 16 and 1700s (Encyclopedia

Britannica, 2014) However they did not become prominent till the Civil War Era.

Bookstores became such a large idea that they were written about in famous stories. The heroine in Cecilia a book by Jane Austin, passed her time 'greatly to her own satisfaction' in London buying books, thereby furnishing herself with 'the mind's first luxury'. This fictional woman was also portrayed making philanthropic and solitary visits to a haberdasher's shop in Fetter Lane, near the booksellers' quarter in St Paul's churchyard.

Bookstores became not only a place for business, but also a place where women were able to go and spend time without the feeling of inferiority. They gave women a power

and knowledge and comfort. No matter ones background they all citizens were equals at the bookstore.

Bookstores have not been in trouble of fading from memory only now. There have been many times where they have been in peril. In the early 1930s-1950 bookstores had faced a huge struggle as well. There was a huge gap between publishers and bookstores. O.H Cheney in his 1931 book called Economic survey of the book industry, spoke of the gap between the publisher and book buyer. The gap was so large and there was so much confusion that the industry was threatened with destruction (Winship, 2007, pg.152)

With that in mind bookstores began to become more diverse. They grew into stores who would also sell games and puzzles. At first books in the stores would mainly be behind the counter, and only the clerk would have access to them. As time progressed customers were actually able to look and touch the books before buying, they were able to roam and shop as they pleased. Shops progressed and became more of a place to visit and spend time. They adapted and grew into what they were at their peak.

Now in this day and age of technology, bookstores have and do face the same perils. In the beginning of the 21st century a new change is coming. Our needs and wants have changed causing a change in the reorganization of bookstores. Now there are more chain bookstores in shopping malls and Internet distributors are gaining a lot more sales.

Now we have mixed feelings about all these changes “and we are all familiar with many nostalgic laments over the loss of many of our independent retail bookstores” (Winship,

2007, pg. 155). It has happened before and bookstores have survived but is this the

change that will be the end of the bookstores? Will this be the time when O.H. Cheney’s saying will be held true: “mourning becomes the book industry” (OH Cheney, 1932).

E-Commerce

As shopping grew so did technology. Technological advances made it easier for us to shop from all parts of the world. Here in lies the question has technology grown so much that we no longer have the need for actual stores?

It is without a doubt that most companies must find a way to adapt to this rapid change of e-commerce. If a company does not have this ability or option, many people will tend to shop elsewhere. Why leave the house and drive and find parking just for a certain good, when it can be delivered to your house from the comfort of your house? All you need to do is point and click and within a day or two your item has arrived. However with the growing business of sites like Ebay and Amazon, the brick and mortar stores are in danger.

Not all companies have the ability to invest so much money into this field. Many companies are putting in a lot of investment money to try and keep up and are under pressure to figure out if it is working or not (Deleone/Maclean, 2004) There is no doubting there are many benefits of e-commerce, such as: increased sales, lowered costs, better customer awareness, access to new markets, better customer service, operation effectiveness, and so on (Zhuang/Lederer, 2003 pg 75). Not only does it help businesses it does help developing countries with better labor facilitation and a growing number of jobs (Singh, 2008 pg. 633).

E-Commerce also bridges the gap and puts an end to the idea of “death of distance” (Cairncross, 1997). You do not have to settle to purchase your good in only one city, state, country or even continent. You can order from anywhere in the world and receive it as soon as you would like. The boundaries and barriers of distance no longer limit a person. This in itself causes issues. Not only have the stakes of competition risen from the local level to the international, but also companies without these abilities face many other issues.

E-commerce is reshaping business practices of many companies, and is raising new sorts of cross-border issues. When e-commerce first began it was widely predicted that most companies would in the end have to charge the same amount for the same goods. Now that the availability of products is larger people would just look around for the better deal and just end up buying it from that store (Clay, Krishnan, Wolff,

Fernandes, 2002, pg.355). Also e-commerce impacts many other aspects of businesses as well: shift in the balance of power towards consumers, bringing in new customers, and so on (Buckley Montes, 2000, pg 29). It allows individuals from a country to try and find a better quality and cheaper product. They no longer have to use what is around and have to be stuck paying whatever the business is providing. However, the problem of accessibility is another issue. Such access to the infrastructure of e-commerce is hard to find everywhere. More developing countries may not even have one telephone line for the whole village, let alone Internet connection.

Not only are companies fighting with other business around the world, the internet has given customers themselves the ability to sell. Large companies such as amazon and E-bay are allowing customers to resell their items to other customers for a

much lower price. A customer is now able to find a textbook or a book of their choice at a large discount, only because it has been used. The used book marketplace has grown incredibly over the past few years and is making it difficult for independent and even large bookstores to compete.

E-books vs. Books

The biggest debate comes within this question: Have e-books change the future of books and bookstores? There is so much debate between, whether or not e-books have taken over, and it will be the death of regular books. One side of the argument is from the technologically savvy. Computer people already view the traditional printed book as equivalent to the old, rare, and cumbersome to those that were often chained to the monks' desks. Getting future librarians and information professionals to understand the historic context of the current debate is essential if they are to make decisions about the design and use of the libraries they will work in (Cox, 1999). These kind of people believe the war on books has already been lost. The printed book to them is ancient and nothing more than a relic. The people on this side of the argument look at e-books as a way to break through the boundaries of old teaching techniques. It gives us a different approach and look at things. Electronic expression has come not to destroy the Western arts and letters, but to fulfill them. Boundaries are dissolving, new means of access are opening up, new creative forces are about to be unleashed, and better opportunities for raising the general level of literacy in our society. These people believe it helps us become more diverse, and allows us to learn more. (Cox, 1999)

On the other hand there are people who argue completely against this side. They feel e-books make us lazy and cause literacy rates to drop, human beings as we know them are products of literacy, the new electronic ways have worked to stop the possibilities literacy offers. People on this side of the argument (Westin, 2013) worry that if we lose books we will lose culture and a large part of our history. We need them to remember and to learn about our past and future, "language is the soul's ozone layer and we thin it at our peril."(Birkerts, 1997). Indeed. If the book disappeared, would this be part of the thinning? Without books we lose knowledge and without knowledge we are in peril of losing the soul of our history.

In the article book vs. byte, (Cox, 1999) the author states, whether the book is a physical object or electronic shadow is almost beside the point. The issue is we understand, regardless of what might replace the book, the nature of information and knowledge in our society. It is what any society or culture is held together by, the book being a part of the symbols and memories of a society. It is indeed what distinguishes us as human.

E-books also some may argue uses up a lot of Earth’s metals, and not only are some of them rare, they are also highly toxic (Baron, 2015). In her research Naomi Baron states that there is a huge appeal of hard cover books. She states people from teenagers to millennials like the idea of turning the page, smelling a book, navigating to where they were, less eye strain and headaches (Baron, 2015). E-books also hold the ability of distraction. With e-reading there is an invitation for clicking, purchasing, and so on.

Whereas with a regular book there is a sense of serenity (Mohsin, 2014).

E-books have many benefits, which have caused their rise. With an e-book you have the ability to carry it around anywhere and everywhere without it taking much space

(Baron). Also it is very cost effective, let’s say a book at a bookstore may cost $20, the e- book version may cost anywhere from $5-12. So you are able to purchase more with the same amount of money. Another benefit of the e-book is the ability to carry so much information in one place and the organization is great as well. You can have 50 books all at the tip of your finger, and it all takes up the same amount of space. You do not need bookshelves and boxes to keep these books; you just need your reader. E-books also provide the ability to find something quickly, you can flip through and in some cases just search for the words you want and it finds it automatically. You can also define words you do not know by simply holding your finger on the word.

E-books are very helpful and give way to more technological advances, but they do have their downside as well. They take away from the whole experience of visiting a bookstore. They also have the ability to be pirated, many books are just being downloaded illegally and also being sold by those who do not hold the copyright. Also certain e-readers have a glare issue when used under daylight, the screen becomes not very visible. Battery life is another issue, paper books last for centuries whereas e-readers might not even last more than a year. The biggest issue I feel is the ability to just hold and smell a book, something about old books brings in so many feelings and memories.

They both have their pros and cons, however the technological factor has been huge in deciding which one becomes more successful. E-books did make a big splash and still have an effect on local stores, but some stores have been fighting and adapting to stay in business and provide customers with the book shopping experience that has

adapted to technology but also the same feeling of shopping that has been around for hundreds of years.

Book Response

Book sales make up a large piece of sales online. In places like Canada almost

50% of the sales online were of book/e-books (European Ecommerce, 2014). This has been a big problem for many book publishers and large bookstores, let alone small independent stores. They have been scrambling for ways to stay in the game and try to expand their business.

Barnes and Noble has even brought in some veterans to try and help their cause.

They have expanded their variety of products. Even at their attempt of creating an e- reader they have experienced a large amount of loss. According to the Wall Street Journal as of May 2nd, 2015 the nook (Barnes and Noble E-reader) reported a loss of 86.3 million on a 47.8% revenue decline (Trachtenberg, 2015)

The five main Book publishing companies in July 2015 struck a deal with

Amazon to be able to set their own prices and not be discounted in e-book sales.

However as they set their prices at an average of $10.81, other books from other publishers are being sold for $4.95 according to the Codex Group. This has caused a decrease in sales in the past few months. Readers are not going to be willing to pay the same price for an e-book than they would for a hardcover book. (Trachtenberg, 2015)

Industry wide e-book sales have drop 10.4% in the 2015 year according to the American

Association of Publishers. This may be the case because of the higher prices or just that

there hasn’t been anything good out, but amazon does state they have had sales increase in book in 2015 not from the 5 main publishers.

Whether or not individuals or companies like the new trend of books and the book industry, they must either try to innovate the way brick and mortar stores do business, or they must accept the way things are headed.

Online Book Retailers

The largest website and biggest competition for bookstores and booksellers is

Amazon. It has revolutionized the way e-commerce works and has changed the whole outlook on books. It not only allows people to purchase books, e-books, and textbooks, but it allows individuals to sell their own books, as does Ebay. Thus, making it difficult for stores to compete with these prices while paying rent, utilities and so on.

In 2012 Amazon and EBay accounted for 200 million members each. Ebay sold over 75.3billion in merchandise the same year, whereas Amazon sold 1 billion items alone in quarter 4 of the year (39% of which came from third party merchants). When broken down that becomes 126 items being sold every second! (Ogborne, 2013)

In 2014 according to Forbes (Bercovivi, 2014), Amazon’s book sales closed around $5.25 billion dollars. 30% of all book sales are now e-books and Amazon holds a

65% share of the category, with Apple and Barnes and Noble holding the majority of the other 35%. Also Amazon is able to beat out the competition by giving customers the lowest prices due to having discounts from the largest publishers (up to 53%). This makes it very difficult for independent and even larger bookstores to compete and stay afloat.

It is reasons like this that over the past 20 years greater than 20% of independent bookstores have closed, and those that are open made up less than 10% of book sales in

2013. However there has been a slight movement in the independent bookstore with an increase of stores being started in the United States. Oren Teicher the chief executive of the American Bookseller Association said American indie bookshops have taken the place of the big holes large chain bookstores have left around. He also states these stores have taken advantage of the “spirit of localism and urban renewal that is coursing through some American cities” (Heyman, 2015). Figure 2 below shows there has been an increase over the past 6 years, it is still only half of what it used to be but it is moving in the right direction.

Figure 2 Independent Bookstore Chart

“Where's your church?"

"We're standing in it."

"But this is a bookstore and it's a Friday."

"Yes, but you might also choose to see it as a cathedral of the human spirit-a storehouse

consecrated to the full spectrum of human experience. Just about every idea we've ever

had is in here somewhere. A place containing great thinking is a sacred space.”

-Forrest Brown

Data and Methodology

Given that the power is of the consumer in the book industry, one of the main focuses of this study was to collect data from consumers and bookstore owners who deal with these consumers on a daily basis. Another focus of the study was collecting bookstore locations over the past 10 years and mapping them.

The data for this study was collected in three different ways:

1. A survey, including questions about consumers’ opinions and preferences. This

data was then collected and tallied to see what the majority of people prefer when

it comes to shopping for books.

2. Interviewing current bookstore managers and owners, to see their opinions on the

market and their business plans.

3. Lastly, using Excel and ArcMap data was collected and mapped out to see if there

are any spatial characteristics with bookstores.

Finding Bookstores

To be able to get a picture of what effect bookstores have had, I decided to map them all out. Using google maps, I searched all the areas in the LA county area one by one finding the bookstores located in the area. I used excel to organize all the bookstores, coming out to 181 bookstores that I was able to find. This includes open and closed bookstores (Figure 3). Next I searched each bookstore to see which ones are still in business and those which are closed. From here I made two other excel sheets, one with open stores (Figure 4) and one with the closed ones (Figure 5).

I checked all zip codes and made sure to find bookstores that were closed recently in the past 10 years only. I chose the 10 year limit as the rise of e-commerce was recent, and it would skew the results had I included stores that may have closed later than that.

From these closed stores I made sure they were permanently closed and not just relocating as that would skew the results as well. It was evident that 51 bookstores have closed over the past 10 years, most in the past 5. These stores that have closed were not in business for only short periods of times. The smallest period was 5 years and some ranged to be in business for over 100 years before shutting down.

Mapping the Bookstores

After collecting all the data about the bookstores, the next step was to map them and find out spatial characteristics about the bookstores in LA County. After entering the addresses of the stores in Excel, I uploaded the files onto ArcMap. From there I geocoded the results to appear. Later I added a map layer of LA County broken down by Zip Code.

With this I made three different maps: All bookstores whether open or closed, Open bookstores, and closed bookstores. After mapping these three out, I ran business analyst to find the best 2014 census data about Income (Figures 6 and 7) and Education (Figures

8 and 9). For income I used 6 different groups to be able to show the levels of income a little better, and for education the level used was Bachelor’s Degree.

After mapping the income and education data, 2 separate maps were created for each: Open bookstores and income level, closed bookstores with income level, Open

Bookstores with Education, and Closed Bookstores with Education. The levels of income and education are shown by varying colors for each zip code in LA County. After the maps were created an analysis was done to see the spatial characteristics that were found.

Maps

All Bookstores: (Open and Closed)

Figure 3 All Stores

Open Bookstores:

Figure 4 Open Stores

Closed Bookstores:

Figure 5 Closed Stores

Income and Open Bookstores:

Figure 6 Income vs. Open

Income and Closed Bookstores:

Figure 7 Income vs Closed

Education vs. Open Bookstores:

Figure 8 Education vs Open

Education vs. Closed Bookstores:

Figure 9 Education vs Closed

Survey

Since the purchasing of books is in the hands of consumers, I decided it would be best to see what friends, colleagues, and other decided thought. With some trial and error

I was able to come up with a survey to ask certains questions, trying to find a result or a connection betweeen the growth of e-commerce and the decline of bookstores.

The surveys focus was not only to see what people’s book buying prefrences are, but also to see if there is a connection between income, zipcode, education levels and book buying. It aslo asks to see wether or not certain people might be more willing to go to book stores given more variety or activities.

After the survey was created, it was posted on facebook, twitter, and emailed to class mates. I relaized the best way to get the most diverse answers was to ask as many people as possible. With the help of others I was able to come up with 75 survey responses giving me a wide range of responses, and a more definitive picture of what people perfer when it comes down to shopping for books.

Here is the survey.

E-commerce vs Bookstores

Book Survey * Required What age range do you fall under? o 18-25 o 26-34 o 35-44 o 45-54 o 55+ What is your Zipcode *

What income range do you most associate yourself with? o Low 34

o Median o High What is your highest education level? If currently enrolled please select the one you are currently in o High School o Some College o Bachelor's Degree o Master's Degree o Phd What book format do you prefer? o Hard Copy o E-book How often do you read? o Everyday o Once a week o Once a month o Once every few months o Once a year o Never How often do you visit a bookstore? o Everyday o Once a week o Once a month o Once every few months o Once a year o Never Why do you visit bookstores? o Purchase books o Pass the time o Purchase other things (music, games, puzzles) How often do you purchase books? o Everyday o Once a week o Once a month o Once every few months o Once a year o Never How do you prefer buying books? o Online o Bookstores How often do you shop online? o Everyday

o Once a week o Once a month o Once every few months o Once a year o Never If you prefer online shopping what is the reason? Check all that apply (leave blank if you do not prefer online shopping) o Ease of purchase o Better pricing o Easy to compare o Large Selection o Do not have to leave house/work What would make you visit bookstores more often? Check all that apply o More variety of books o Coffee Shop o Different products (puzzles, games, music, etc.) o Group activities

Results

Map Results

The first 3 maps showed LA County and the bookstores with no specific characteristics, just their locations. As can be seen in the Figure 3 (All Bookstores), most of the bookstores are located in the San Gabriel Valley, Central Los Angeles, San

Fernando Valley, and South Bay areas. There are very few in the Santa Clarita Valley and Antelope Valley areas. Figure 4 shows all the open bookstores. And Figure 5 shows all the closed bookstores. As can be seen there have been many bookstores that have closed in the past 10 years. Also they seem to have closed all over LA County in a proportional fashion. So the other maps further investigate to see if there is a direct correlation between the closing of the stores and education and income levels in those areas.

Figure 6 shows Income and open bookstores. As can be seen there are bookstores in almost all income levels. The following table shows the amount of bookstores in each income range that are opened and closed:

Income Range ($) Number of Open Number of Closed Percent Decrease

Bookstores Bookstores (%)

0-25000 6 2 33

25001-45000 17 7 41

45001-65000 53 22 40

65001-85000 36 14 40

86000-115000 12 5 41

115000+ 6 2 33

Table 1: Income and Percent Decrease in Bookstores

Most of the bookstores (81%) are found in the middle class areas as well. Low income areas have very minimal bookstores (<5%), except in downtown Los Angeles, where there are a few historic ones. High income areas do have a few as well (14%), but they are not in high numbers. The middle class income areas have the most amounts of bookstores. When looking at Figure 7, which is the closed bookstores on top of the income level map, we can see that the bookstores have closed in all areas over LA

County, regardless of income. All the different ranges have a closure rate between 33-

41%. There are a proportional amount of closed bookstores in high, low, and middle income areas. This data shows us that income levels of an area only effect the opening of bookstores, but do not contribute to the success of the bookstores.

The next 2 maps show bookstores and education levels. Figure 8 shows us education and open bookstores. Table 2 shows the number of bookstores open, closed, and percentage decrease when it comes down to education levels:

Education Level Number of Open Number of Open Percentage

(Bachelor’s Bookstores Bookstores Decrease (%)

Degree)

0-1250 6 2 33

1251-2857 14 6 43

2858-4671 30 13 43

4672-6742 47 18 38

6743-9562 21 8 38

9563-16567 12 4 33

Table 2: Education and Percent Decrease in Bookstores

Here it can be seen that most bookstores (80%), can be found in high or middle education levels. Lower education areas (15%) make up a very small amount of stores that are open. It is more evident than the income map. Education seems to play a more prominent role in determining where a bookstore might open up. When looking at the education level and closed bookstores in Figure 9, it can be seen that bookstores have proportionally closed everywhere regardless of education level, ranging from (33-43%) decrease in the amount of stores. There is no direct correlation of bookstores closing and education level given this data, however just like income, it does seem to play a part in the decision making of where a bookstore is to be opened.

There are many characteristics that can be examined to see if they have an effect on the opening and closing of bookstores, however it is apparent that bookstores are closing all over LA County, regardless of the characteristic. There seems to be a bigger issue, outside of Los Angeles that is causing the bookstores to close down. E-commerce is the most likely factor, however given the scope of the study it is not possible to definitively say that it is.

Survey Results

Zip Code City # of Responses

91040 Sunland 5

91214 La Crescenta 14

90623 Cerritos 2

91343 Van Nuys 1

91208 Glendale 11

91326 Northridge 3

90065 Los Angeles 3

91356 Encino 2

91362 Thousand Oaks 1

93062 Simi Valley 2

93550 Palmdale 2

91331 Pacoima 2

91502 Burbank 6

90801 Long Beach 4

91604 Studio City 4

91066 Arcadia 1

90601 Whittier 1

91001 Altadena 2

91011 La Canada 1

91107 Pasadena 6

91605 North Hollywood 2

Table 3: Survey Zip Code Results

The results for the survey questions are shown in various pie charts as follows:

Interpreting Survey Results

The total number of responses received from this survey was 75. The responses were given from 21 different zip codes all over Los Angeles County. The highest number of responses came from the city of La Crescenta (14), then Glendale (11), then Pasadena

(6).

Next the question of age was asked. Most fell in the young adult age range. The highest response of age range was the 26-34 category making up 45.3%, followed by 18-

25 range (38.7%). There were no responses by anyone over the age of 55.

Next a question of Income was asked. The income was broken down into three categories; high ($100,000+), medium (30,000-99,999$), and low (0-29,999) incomes

(these are all averages for a family of 4). Like excepted most of the participants fell under the middle class, making up 56% of the responses. Next followed the low income class with 36%, and high income was the smallest size with only 8% of responders.

Then came the question of education. Surveyors were asked about what is the highest level of education they had completed. Most people had completed some or all of their bachelors (58.7%), followed by Master’s (33.3%), some college (5.3%), and the smallest group was those who only had a PhD (2.7%).

After the individual completed the general characteristics about themselves

(education, income, and zip code), the survey begins to ask about their reading and bookstore preferences. 85% of individuals participating read at least once a month, however that did not necessarily translate into purchasing books as often. The largest range of people said they only purchase book once a month to once every few months

(69.8%). No one purchases books daily and only 5.5% of people purchase books at least

once a week. The third largest group making up 21.9% say they purchase books only once a year.

The next group of questions were how often an individual visits a book store and, why they do. Most individuals (41.7%) went to a bookstore at least once a month. The other majority was visiting bookstores once every few months to once a year (44%). Also only 6.7% of people visited a bookstore every day and 8% said they never visit bookstores at all. However, just because majority of people visited bookstores frequently, it did not translate into book purchases. Over 50% of individuals said they only went to bookstores to pass the time, another 9.3% said they went to purchase other items, such as; puzzles, music, games, etc.

The biggest revelation of this survey was seeing the preference of book format and purchasing method of individuals. 81.3% of people in the survey said they prefer hard copy books to e-books, however 77.3% purchased their books online, over going to the bookstore. This realization bode well with the other question. Over 90% of people said they shopped online at least once a month. Of the majority who preferred online shopping, they were asked what about it made it more appealing. Here is in descending order what qualities that made the individuals shop online more: Better pricing, ease of purchase, large selection, easy to compare, and do not have to leave the house.

The final question on the survey asked what would make the individual visit a bookstore more. Most said a coffee shop would make a difference (71.6%), other said variety of products (books and other items), and group activities.

From this survey and sample size we can see it is not e-book that has changed the way people buy and read books, it is e-commerce. It has allowed people to find better

prices for their books, a larger variety of products, and allows the individual to order from the comfort of their home. The majority of people do enjoy reading a hard cover book and like the experience of the bookstore, however that is not enough to steer them from purchasing books at bookstores. The online experience and pricing seems to have been a major factor for the change.

Bookstore Owners

The trend has seemed to be that independent bookstores are at their downfall.

However there are a few which are doing well and are progressing even given these tough economic times. I was able to speak to four different bookstore owners/managers, and see what it is they are doing differently to stay in business and trying to increase their business.

1. Skylight Books – 1818 N Vermont Ave, Los Angeles, CA 90027, (1996-

Present), Steven Salardino - Manager: Steven is the manager at Skylight

Books, and he was able to give me a few ideas as to what is going on with the

independent bookstores, and what Skylight is doing to stay in business. He

started off by letting me know that he believes real estate is one of the biggest

issues when It comes down to staying in business. He said with the rising rate

and prices of buildings and real estate it is becoming harder and harder to earn

enough to pay off all the costs. He also states that Skylight focuses and

researches what is current and tries to carry as many current and new titles as

possible. They also have a connected store that has only books at items

dealing with art. Given the community they are located in, art is a very big

concept in the area, and they have decided to focus on that and give clients a

lot of different types of items. Mr. Salardino also said the emphasis on

customer service is a large part of their success. They try and give every

single client the best care, so that they feel comfortable and want to keep

coming back to the store. Lastly, he states that community is such a big part of

growing and succeeded, so at Skylight Books they have a lot of community

events open to everyone, they work with non-profit organizations to help raise

money and awareness, and so on. Skylight Books

2. Illiad Bookstore – 5400 Cahuenga Blvd, North Hollywood, CA 91601,

(1990s-Present), Dan Weinstein – Owner: Illiad Bookstore has been around

for over 20 years and they have thousands and thousands of books for all

types of categories. Upon speaking with Mr. Weinstein, he like Mr. Salardino

stated that real estate has been the most important thing he believes that has

helped them stay in business. He says his family owned the original store, and

with that they were able to find a bigger location and create a larger inventory.

Also he says just being friendly and creating a fun environment is very

important.

3. Flintridge Bookstore & Coffeehouse – 1010 Foothill Blvd, La Canada, 91011.

Peter Wannier – General Manager: I also was able to speak with Mr. Wannier,

who is the general manager at the La Canada Bookstore. He said the key thing

for them staying in business and doing well was trying to connect to the

community as much as possible, He says they do a lot of community events,

whether it be book reading, or holiday themed events. This allows them to

better connect with the clientele and bring in more business. He also says

having a café that serves not only coffee but food as well helps out a lot.

4. Vroman’s Bookstore – 695 E Colorado, Pasadena, CA 91101, (1900s-

Present), Allison Hill – President/CEO: Upon speaking to Mrs. Hill she

reassured me that Vroman’s is doing very well. She said it is their third best

year in a row. She mentioned that in 2010 when the Ipad was introduced she

was sure brick and mortar stores were in real trouble, however the big bite

these ebooks took has leveled off and independent bookstores are reporting a

renaissance. People now are realizing the limitations of their devices. She

broke apart Vroman’s ability to succeed into 6 different facets. 1. Carrying

other items instead of books. 27% of their sales were from non-book items.

She sates the diversification allows them to ride the dips of the book market,

since prices are fixed by publishers. 2. Since they cannot compete in pricing

with sites like Amazon, they offer things you won’t get on an online site, such

as: 400 free community events a year, book fsirs with local schools, donating

to non-profit organizations, a coffee shop, and so on. 3. Excellent customer

service and follow ups with customers. She states how difficult it can be to

receive help from a site like amazon if something is wrong with the product,

at Vroman’s there is always someone there to help. 4. She states there are

three big values Vroman’s has always had: books, community, philanthropy.

This way you know who they are and what they do unlike big corporations. 5.

The Buy Local movement and people’s increased understanding of helping

keep jobs and tax dollars in the communities. 6. They have embraced the new

changes in the book market. They sell an e-reader called KOBO, they sell

covers and accessories for e-readers. She finishes off that statement by saying

“If you can’t beat ‘em, join ‘em.”

It is evident that these stores and many more that are finding a way through the book industry changes are mainly focusing on a few main aspects that large online corporations cannot give. They are increasing their products and including; coffee,

puzzles, and games to give the consumer more of a choice and a place to hang out. They are focusing on the community and involving the citizens. This allows more people to see what these bookstores have to offer and gives them a sense of belonging. They work with non-profit organizations to help those in need and to show they are not just another corporation, but a family and a pillar in the community. Lastly, they are also focusing on customer service. With bookstores you deal with actual people and they understand this is a large difference than purchasing online. The human connection is great and allows people to feel comfortable and know they have a place to go to see and meet people with the same interests. With these factors, those which were not slowed down or shut down by the e-book rise are finding a way back to hearts of customers, and are beginning to succeed again.

New Changes

Since the writing of this thesis and study, many new changes have been made by the largest competition of the Bookstores, Amazon. They have made 2 recently huge changes to even further their hold on the market. They began a program called Amazon

Now, which now delivers goods to your door for free in 2 hours, or $7.99 extra if you want it there within the hour. This is new and is only available in certain areas such as:

Santa Monica, Silver Lake, Redondo Beach, and a few other cities, but soon will be available everywhere. It is however only available to amazon prime subscribers, which has an annual fee of $99.

The second largest change amazon has done is the opening of its first brick and mortar bookstore. The store was open on Nov.3, 2015 in University Village, in Seattle.

The store is called Amazon Books and has around 5,000-6,000 books in stock. The store will stock best sellers, books that are highest rated on the website, most wished for books, award winners, and so on. Each book will have a detail card under it showing the average stars it has and a detailed description. People have looked upon as Amazon as the slow demise of independent bookstore. They are hoping the data they have about shopping patterns will give them an advantage over other book retailers. Jennifer Cast the vice president of Amazon Books says, “It’s data with heart. We are taking the data we have and we are creating physical places with it” (Greene)

The store will also have a few different characteristics than other stores. All their books will be facing out, they will include many titles that are not from major publishers, and will have only 5,500 sq ft of space, which is about 1/5 of a large retail bookstore.

They also will sell other products such as the Kindle, Fire tablets and other Amazon

gadgets. They said they chose Seattle because it has a great readers market and it is close to the headquarters. They did not mention anything about future locations, but said this is not a pop up shop. Jennifer Cast adds, “We love bookstores. Books are in our DNA. We are really excited about taking the information we have about books-the reviews, the customer ratings, the sales data- and bringing that information inside the store” (NPR)

This change is difficult for independent stores, because they now have to compete with amazon in the physical marketplace as well. In an NPR interview a bookstore owner from Illinois, Maxwell Gregory, said “I think if they are going to do bricks and mortar, they should, you know, not have that availability to undercut other retailers. But, you know, there’s nothing we can really do to compete with that and still stay viable in a bricks and mortar store” (NPR) Gregory thinks more stores will open up and if it does she hopes her customers do stay loyal incase amazon decides to open up more stores, because she cannot compete with the model and prices. Jennifer Cast said she is hopeful the

Seattle store succeeds so they can have more stores in the future, “We’re completely focused on this bookstore. We hope this is not out only one. But we’ll see” (Greene).

Amazon has changed its model and continues to evolve. There has been a recent spike in independent bookstores, however this is Amazon’s response to try and take over a larger portion of the market. However, it is too early to tell how big of an impact this and any other new changes amazon decides or already has made.

Notable Closed Bookstores

No matter the business it is hard to see a long lasting store close its doors. This however is the case for a few very notable bookstores in the Los Angeles region. Some stores were not able to deal with the changes in the industry and were forced to close their shops. Here is a list of a few stores that had to close down and the reasons why they did.

Brand Bookshop: (1985-2015) “The book business has changed dramatically,” he said.

“People do not need to buy books. They can actually access reading any book on the

Internet, so I understand, in a way, it’s very practical, especially among the young generation.” –Noriaki Nakano (owner) (Kamal)

Cliffs: (1986-2013) “Customers who used to rely on the store for rare and used books can now find them faster, and usually cheaper, online. And the business didn't adapt fast enough to the changing consumer marketplace” –Jerry Lang (former employee)

(Karlamangla)

Williams: (1909-2013) The store is considered to be the oldest-operating bookstore in

Los Angeles. It had managed to survive two world wars, recessions and trendy chain bookstores with coffee bars. But ultimately, changing technology and the Internet looks was the last straw (Osen).

Acres of Books: (1934-2008) "I love this place. I love the smell of it. When it used to rain...I'd come to Long Beach, I'd come here to the Acres of Books and I'd go in the back.

The back section has a tin roof, and you can stand there, with the rain beating on the tin roof, making you feel good. And you're picking up the books. and you smell them, and

you're alone with your loves in Acres of Books. That's why I'm here." –Ray Bradbury (Lb

Report)

Cooks Library: (1989-2009) The stretch of 3rd Street between La Cienega and Fairfax is pretty hot right now, but owner Ellen Rose blamed the loss of customers to Amazon. "I am extraordinarily proud of what I've done...I wish I could be open for another 20 years"

(Roderick)

Lighthouse: (1945-2009) "For years, if you wanted Christian products, you could only get (them) at a Christian store," he said. "Now you can buy our product in all sorts of stores at great discounts and features and online with no tax and no shipping. It's hard for us to compete with that" –Mark Bingle (owner) (Burns)

These are just a few stores that have closed, and all have attributed their drop in sales and reason for closing to be the advances in technology. They have not been able to compete with the low prices and availability. Also they noted that the increase in rent has made it difficult to keep costs to a minimum, therefore were not able to make any sort of profit. This is the case for over 50 other bookstores not included in this section. Many have been around for 20 years and ranging all the way to over a 100 years. The changes in the book industry have been difficult to adapt to and all these stores have been forced to close up shop.

Vacant Stores

All across Los Angeles most of the stores that have closed down have just stood there, vacant and abandoned. If they are not vacant, they have been taken over by clothing stores, or other shopping centers. Also, there are a few that have been demolished and new structures have been built. The LA

Landscape is vastly different than what is was 10 years ago when it comes down to bookstores.

Here are a few examples:

Brand Bookshop now sits vacant on Brand Blvd. It has been vacant for over a year and now has leasing signs instead of books covering its windows

Borders in Glendale stood empty for a few years, and as of last year

Marshalls has taken over and as pictured above

Cliffs in Pasadena closed a few years ago and now sits vacant on Colorado

Blvd, across Vroman’s Bookstore.

Acres of Books closed after 75 years in business. The land was sold to a development company that was dissolved by Governor Jerry Brown. It now has plans to become an Art Exchange, but no plans have been completed yet.

These are just a few examples, and only in LA County. If this many stores have closed and the effect can be seen, it is imaginable the change that has occurred all over the County, and the World.

Conclusion

Nothing in this world has grown faster and more astronomically than technology. Whether it be medicine, computers, cars, or television, technology has changed our world and mostly for the better. Given the short time that personal computers have only been around for, they have revolutionized our power and habits. However, this advancement has come with a price to our physical world.

E-commerce has been an amazing advancement, it has given consumers the power of choice and freedom to shop anywhere in the world.

Consumers are now able to compare and sell their own products with the click of a button. No longer do individuals have to leave their home to purchase their goods, everything is being delivered to their door at no real extra cost. This has made it very difficult for brick and mortar stores to stay in business and compete with all companies from all around the world.

Giants like Ebay and Amazon make the purchase and selling process so easy that they completely cut out the middle man, which are the stores in our communities.

This effect has been the most prevalent in the book industry. The rise of e-books, the cheaper prices online have made it difficult for independent stores, who don’t have the money or power to adapt to all these changes.

Over the past 10 years in LA alone over 50 stores in this study alone have closed. This study took a deeper look to see what the issue was and why all these stores are closing down.

From the data collected and research that was done it became obvious that the largest effect on these bookstores was the rise of e-commerce. E- books came and made their imprint, however they seem to have decreased in popularity and effect. Individuals in this study made it clear their preference was an actual copy of the physical book, however the majority preferred to purchase these books online. The bookstore was only a place to pass the time or have some coffee. The ability to browse and find the best prices, without leaving the comfort of one’s home was a far more enticing opportunity than visiting an actual bookstore for the majority in this study.

This study also aimed to find spatial characteristics between why bookstores open and closed. Education and income were the only characteristics looked at, however, education seemed to have had an effect on where a bookstore would open, but it did not seem to have an effect on its ability to succeed. Income did not see to play as big a role in the opening or closing of stores in this study.

Due to the recent rise of e-commerce it is difficult to tell the long lasting effect it will have. Given interviews conducted and research in this

study bookstore owners have found it difficult to compete with the online retailers. They have been fighting with different techniques: great customer service, local events, and so on. Recently there has been a rise in independent bookstores, but it has been too little too late for a lot that could not cope with new advances in technology. This is evident when you drive around Los Angeles and can see the old stores that have been either converted to clothing stores, stay vacant looking for new owners, or have been demolished to build newer buildings.

There has been a change in the LA landscape when it comes down to bookstores, and from this study we can see e-commerce has had an effect on it. Stores that have lasted World Wars and The Great Depression, could not survive this change. It is still too early to tell how big the damage is and how widespread, but there have been major changes, but as the dust has settled a big change can be seen. The bookstores have been fighting back, a few more have been opening up, however the online retailers are taking on the offensive and have opened their first physical bookstore. What is to come? It is too early to tell, but there is a change coming, and it is hard to tell who will have the upper hand in the end.

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