Wholesalers, Distributors: Most Open; Diamond Suspends Weekly Distribution

More spot checks with wholesalers and distributors have shown that most are open and processing orders, exempt or unaffected by stay-in-place orders.

Hachette Book Group is offering the following programs to support independent booksellers:

  • Curbside pickup earns an additional +2.5% off MSRP up to $100 rebate per ship-to location
  • Additional 30 days dating
  • New lower minimum order quantity of $40 invoice value

The following HBG distribution clients are participating in the offers: Abrams; Disney; Hachette UK, including Mobius and Nicholas Brealey; Lonely Planet; Kids Can Press; Marvel; Moleskine; Octopus; Phaidon Press; Phoenix International; Quarto Publishing Group; and Yen Press.

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In a letter to staff that nominally was about excellent 2019 fiscal results, Penguin Random House CEO Markus Dohle noted that "2019 seems so long ago, as we now face a global pandemic that has shaken our book community to its core. Thanks to your joint efforts and coordinated work, I know we will prevail in the difficult times ahead." Those efforts will include a "need to adjust and adapt our business on a daily basis and maintain a very cost- and cash-conscious approach. I am confident that we will leverage our collective strengths and solidarity to successfully manage through this challenging time together."

Dohle offered an extra thanks to a part of the book world that sometimes runs so smoothly it's forgotten, writing, "I especially want to express my deep gratitude, on behalf of our entire company, to our heroic supply-chain colleagues around the world, who are shipping books wherever we can. I know many of our retail partners and operations are being forced to shut their doors because of government shelter-in-place mandates or declining demand. As Penguin Random House, we will continue to support them during and after this crisis to get our authors' books into the hands of readers--today and tomorrow."

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Baker & Taylor Publisher Services' facilities in Ashland, Ohio, are open and operational, the company said, and "with all of our partner services working at strategically optimized capacity: sales and distribution, manufacturing, inventory, and fulfillment."

Because of a jump in demand for activity books, through June 15, BTPS is offering bookstores an additional discount on top-selling titles in children's and adult activity categories. The "Spring 2020 Activity Books" promotion includes more than 100 titles at a 50% discount, order minimum 5 units combined, and free freight. Bookstores can contact their BTPS rep for specific details.

Also, as part of Follett and Baker & Taylor, BTPS is working with publisher clients and industry distribution channels to supply free digital resources to bookstores, school personnel, and libraries to provide parents and teachers opportunities to keep children engaged in learning.

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At National Book Network, "it's business as usual," said Jed Lyons, president and CEO of Rowman & Littlefield, which owns NBN.

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Books International is open for business. The company provides fulfillment services for 30 publishers and prints book for more than 300 publishers at its two manufacturing plants, in Dulles, Va., and Chicago, Ill., at the University of Chicago Press's Chicago Distribution Center.

The company is engaging in best practices in its facilities and has 8-12 weeks of text paper inventory as well as plans for backup manufacturing operations with local book manufacturers if it needs to shut down one or both of the facilities.

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Because of disruption both among retailers, who "can no longer service their customers as they have in the past," and publishing partners, who are faced with "numerous issues in their supply chain, working with creators, printers, and increasing uncertainty when it comes to the production and delivery of products for us to distribute," Diamond Comic Distributors is halting distribution of new weekly product "until there is greater clarity on the progress made toward stemming the spread of [COVID-19]," Steve Geppi, chairman and CEO of Geppi Family Enterprises and founder of Diamond Comic Distributors, said yesterday in an open letter.

For the time being, Geppi wrot, "we have been able to develop procedures with our teams at the distribution center in Olive Branch, Miss., to safely continue fulfillment of direct ship reorders for the retailers who are able to receive new product and need it to service their customers." Product distributed by Diamond and slated for an on-sale date of April 1 or later, however, is not being shipped. And in the U.K., product distributed by Diamond UK with an on-sale date of March 25 or later will not be shipped to retailers until further notice.

Geppi added that product distributed by Alliance Game Distributors from Diamond's Fort Wayne, Ind., and Austin, Texas, warehouses will no longer be shipped as of yesterday because both warehouses are closing "in the interest of employee safety and to comply with direction from local governments." The dedicated sales team is working remotely and can help customers with any orders they'd like to place today or questions they may have.

Geppi added: "For those retailers who remain open in various forms, I encourage you let loose your own creativity. For the time being, you will be able to replenish your perennials from Diamond and/or Alliance, but you should also remember the stock you already have in your stores. If your doors remain open, it's likely you will have customers who will continue to seek diversion from events of the world. Special sales, promotions, and even eBay can help you bring in cash during this trying time. Product for which you've already paid may well hold some of your answers. There have been many solid suggestions offered about how to help our retailers, and we will bring many of them together in future communications.

"Besides the industry's most immediate needs, we have been and will continue looking toward the future, when we see stores reopening, bringing staff back onboard, and getting customers in the door. We are looking at issues like debt accrued due to this crisis, what reduced ordering means for your discount tiers, and the availability of credit to help stores through and after this difficult time. We don't have all those answers today, but we understand the many issues you are facing and look forward to addressing them as partners who all have an interest in the long-term health of the industry we love so much."

Geppi concluded on a personal note: "This industry has been one of the greatest joys of my life, from my days as a collector to a retailer to today. I and my leadership team have made these decisions knowing full-well the effect this will have on all of you, as well as our publishing partners and our own team members around the world. At the end of the day, the safety and security of our teams and yours, along with the many customers we all serve, is paramount. I again thank you for your ongoing patience and support."

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