That is the title of an interview in The Daily Telegraph of James Daunt, the managing director of Waterstones by Jake Kerridge, journalist and art critic.
Kerridge writes: “When HMV sold the Waterstones book chain to the Russian businessman Alexander Mamut in 2011, the company was hurtling towards the knacker’s yard. But Mamut made an inspired decision when he appointed Daunt as his managing director. The 54-year-old, the founder of the small but much-admired independent chain Daunt Books, has transformed the company, brought it back into the black, and defied predictions that the mighty Amazon was going to stomp bricks-and-mortar bookshops into oblivion.
“Now, though, the much-loved book chain faces another threat to its existence – from a ruthless hedge fund. Elliot Management, owned by the controversial New York billionaire Paul Singer, announced at the end of last month that it was buying the company from Mamut, sparking fears of asset stripping. Anne Stevens, CEO of British engineering firm GKN (in which Elliott has a stake) has complained that Elliott does not “give a crap” about long-term outcomes, and Singer himself was once described as a “financial terrorist” by the president of Argentina for his ruthless pursuit of debts.
Kerridge asks Daunt what he thinks about the prophesies of doom that blossomed at the acquisition by Elliott. Daunt says: ‘We’re opening more shops than we’re closing. Some people have this notion that we’re always about to close shops – if we close one we must be going to close a hundred – which I simply don’t understand.’
When asked about future plans from Elliott, Daunt says, “I obviously have asked them why they’re buying us and what they expect, and the answer has been: ‘Carry on as you’re doing. We think that you can grow, and if you do grow, we’ll sell you for a profit’.”
“What Daunt has been doing has certainly been successful. At the beginning of this year, Waterstones announced an 80 per cent jump in its annual profits. The stores have become nicer places to visit, with more flowers and comfy furniture. He insists that staff make their own decisions about how their branches are run; every shop has a different customer demographic, so all key decisions – what books to stock, pricing structure, layout – have been left to branch managers. At the same time, readers have fallen back in love with physical books, something Daunt believes has to do with the power of the book as a decorative item.
“I ask him if he is bothered by reports of a crisis in “literary” fiction, with sales reportedly plummeting. , ‘I’ve been nearly 30 years a bookseller,’ Daunt says, ‘and I don’t think I’ve ever heard anything different. We sell astonishing numbers of whatever the latest literary bestseller is, and our bestselling book almost every year is a novel, and a literary novel at that. Publishers wring their hands and say woe is us and the end of the world is nigh. Nonetheless, when I started as a bookseller they were all in small buildings with rickety staircases. Now they’re in marble palaces along the Thames. I shouldn’t mock, but they really aren’t doing badly.”
“He is sanguine about the threat to reading posed by competing forms of entertainment, be it Netflix or social media. ‘Any parent, of which I’m one, who watches their children flick between a million things, thinks: are they going to sit down and read? But then I just think back to my childhood, and my parents were convinced that television was going to be the end of reading. I’m not so worried because books do provide astonishingly good entertainment.’
“After talking to him I have a quick look around and end up so beguiled I spend too much money and am late for my next appointment. Millions of people have the same experience in Waterstones’ branches across the country.”
I think it’s a welcome relief to hear that a major bookseller is growing and making money. A retail, brick and mortar, bookstore can give us an up close and personal experience of books that no internet site can match. And it’s nice to hear that publishers aren’t suffering as much as they would have us believe!