One of the most intriguing conundrums in UK retailing is Alexander Mamut’s prospects for reviving Waterstone’s, which he has entrusted to James Daunt, the highly regarded owner of a much smaller, seven-strong, London-centric competitor.

One of the most intriguing conundrums in UK retailing is Alexander Mamut’s prospects for reviving Waterstone’s, which he has entrusted to James Daunt, the highly regarded owner of a much smaller, seven-strong, London-centric competitor.

Retail Week Knowledge Bank’s newly updated profile of Waterstone’s in the wake of its ownership change charts falling sales, worrying like-for-like drift, wafer-thin margins and diminishing densities, against a background of issues of over-centralised ranging and controversial investment in a new book hub.

One wonders what the equally respected James Heneage thinks. He led Ottakar’s until its absorption in 2006 by Waterstone’s, the latter’s then-management singularly failing to learn the secrets of Ottakar’s distinctive, local success: “I could have told you?”

It is too early to judge Mr Daunt’s changes so far, let alone assess their impact: Nevertheless, Retail Week Knowledge Bank’s profile examines those announced to date. Particularly interesting potentially is his intention to categorise Waterstone’s network by size and customer demographics, into groupings of 10 or so stores overseen by a commercial manager charged with range selection and developing local promotions.

Presumably within this, store managers will receive more responsibility too – key to the idiosyncratic retailing art of bookselling. While Mr Daunt has stated he is reluctant to rationalise the recently modestly culled 300-strong network, Retail Week Knowledge Bank expects some more stores will be cut. Nor has he pronounced on the operational appropriateness, performance and possible changes he has in mind for that hub.

Retail Week Knowledge Bank believes there remains a place for a larger scale, specialist high street, browsing bookseller, especially if the offer can be locally and flexibly honed within an independent operation. The challenge remains substantial, but the initial approach looks promising. Who knows, Waterstone’s could yet become an attractive, distinctive format for introduction into selected international markets.

  • Robert Clark, Director, Retail Week Knowledge Bank

Retail Week Knowledge Bank

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