Books still popular with consumers despite cost-of-living crisis

QBD Books boss Nicholas Croydon says Australians may have switched up their favourite genres since emerging from the pandemic, but the cost of living crunch is no barrier to shoppers spending on stories.

“[During COVID], business books did well as people start to think about starting businesses, as well as self-help and meditation, New Age and all that sort of thing – navel-gazing was really strong,” the head of Australia’s largest bricks-and-mortar bookseller said.

“Now all that self-help and New Age, that’s all gone. People have gone back to cooking, so cooking has had a bit of a revival, and just general fiction, people see that as entertainment.”

Manga and anime are also some of the most successful genres at the bookseller. “We have a lot of titles in that category because all my staff love it.”

There have been plenty of stories about the challenges facing physical bookstores over the past two decades, but QBD is upbeat about its long-term future and how it will face any continued spending slowdown.

The business, which is owned by a syndicate of investors including Croydon, JB Hi-Fi boss Terry Smart and founding partner of Next Capital Patrick Elliott, will launch its 17th Victorian store in Frankston’s Bayside Shopping Centre on April 1, bringing its total store count to 86.

Croydon says QBD, which is on track to turn over just under $150 million this financial year, will eventually hit 100 stores. The goal is to open three to four new stores a year, or expand existing ones, and the company is scouring the nation for the perfect retail sites where foot traffic is strong and shoppers are in want of a bookshop.

While the group’s online offer soared during the lockdown years, it still drives less than 10 per cent of QBD’s business. Croydon is OK with that, noting that the margins and consumer experience are better when shoppers buy books in store.