A multimillion-dollar new website project, which has been years in the works, will be rolled out this week, delivering stronger search capabilities, a more streamlined check-out process, more delivery options and personalised recommendations, according to the customer’s preferences and location.
The lower ground floor of Sydney’s flagship George Street store – which has already been refurbished in the past 12 months – will be closed for renovations to create a “children’s wonderland” of toys and a reading space for children and parents, an area of respite in a bustling central business district. Further renovations are in the pipeline.
Dymocks’ George Street site is its flagship Sydney store.Credit: Rhett Wyman
Premium service, products, prices
The changes are more than just cosmetic: there’s a clear commercial focus on opening up new revenue streams, such as through an expanded loyalty program that creates a paid tier at $39 a year. Dymocks also owns the popular stationery chain, Milligram, which is on its own growth trajectory. Sales from Dymocks’ private-label brands such as The Reader’s Range are also tracking strongly, part of a broader retail trend, while a tighter focus on inventory management has also improved margins.
The emphasis on revenue and margin is timely: book prices have not increased much over the years, and operating costs for just about every business in every sector have risen.
‘Our strategy is not to compete on price. We’re a premium bookseller and book and gift retailer, and we focus on our service.’
Mark Newman, Dymocks Retail managing director
“From a consumer’s perspective, that large-format bookshop is very attractive … There’s so much choice to have a look at. But it’s very, very hard to make money in large-format bookshops because the cost of doing business is very hard,” said Newman.
“Retail rents are very high, staff costs very high. They’re obviously the two biggest costs of running bricks-and-mortar, and margins on books are not great. It’s a commodity product.”
Despite a sluggish economic environment where retailers are watching cost-conscious consumers trading down and shopping around for value, Dymocks has determined it is not playing in the same lane as the likes of Amazon.
“Our strategy is not to compete on price. We’re a premium bookseller and book and gift retailer, and we focus on our service. We focus on having staff who work in our stores, franchise owners who own their stores, who know about books, who read books, who are able to make recommendations to people when they come in.”
The “theatre” of visual merchandising at the shopfront is one of the weapons in Dymocks’ marketing arsenal. Credit: Steven Siewert
Dymocks has a 6.8 per cent share of the bookstore market, behind QBD Books with 9.8 per cent, according to an IBISWorld industry report. Newman declined to provide revenue figures for Dymocks Retail, but IBISWorld puts it at $107 million. Dymocks’ 2023 financial year report shows retail sales grew 12.8 per cent.
The book chain plans to increase the number of its stores, hovering at 50 to 60.
Newman says the Dymocks brand is well recognised and carries weight and insists each store has a local feel, due to the franchise model that lets each operator retain control of book selections while benefiting from purchasing power as a group and a national loyalty program.
“The Dymocks name is synonymous with heritage, but also we’re a very trusted brand,” he said.
“So if you’re thinking about starting your own bookshop, having that name above the store already gives you an advantage over just starting it yourself and seeing how you go.”
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