THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Monday, August 15, 1994 TAG: 9408150424
SECTION: BUSINESS WEEKLY PAGE: 10 EDITION: FINAL
TYPE: Cover Story
SOURCE: Mylene Mangalindan, Business Weekly staff
LENGTH: Long : 140 lines
When real estate developer Gerald Divaris first sought a bookstore for Virginia Beach, he approached Borders, an upscale book chain based in Ann Arbor, Mich. Representatives from Borders, part of Kmart Corp., listened politely to his proposal, looked over the area and turned him down.
Undeterred, Divaris approached Barnes & Noble Bookstores of New York, a chain ranked among the nation's largest book dealers. After a lengthy wooing, Barnes & Noble visited the area and commissioned a market survey.
Bingo.
Its customer profile matched the consumer demographics of Hampton Roads.
``Retailers tend to be followers, especially outside large metropolitan areas,'' Divaris said of stores that move into new areas. ``We went to Borders first, but they didn't want it. They're going to be a follower.''
What's happening in Virginia Beach is a major development that provides a glimpse into how independent merchants are adjusting to the era of chain stores.
Barnes & Noble will open the region's largest bookstore where Hechinger's home center once operated. By attracting hundreds of customers every day, it will advance Virginia Beach's plan to foster a downtown feel around Pembroke Mall.
The 28,420-square-foot store, scheduled to open in mid-October, will anchor an entertainment center that includes a 12-screen movie theater covering 52,000 square feet, and the 32,000-square-foot Planet Music, a CD and cassette tape store. Columbus Village, as the entertainment center has been called, fits a gaping piece of the puzzle known as Virginia Beach's downtown.
The city's Central Business District, the area around Virginia Beach and Independence boulevards in the Pembroke area, has long been envisioned as the hub of the city.
With the entertainment mecca taking shape, developers say the downtown concept may become a reality. Last week, the city announced plans to develop a park alongside the entertainment complex. The park will bolster the downtown plan promoted by Divaris.
``We've taught ourselves to think of ourselves the wrong way,'' Divaris said. ``We're a hot dog and hamburger community. If you accept that you are a hot dog and hamburger community then you will be a hot dog and hamburger community.''
Though Barnes & Noble's up-scale store would benefit Columbus Village and the downtown, its arrival has made established book merchants wary.
Although the book market is a $9 billion industry, local book sellers question whether the market can support another bookstore, especially in an area that lacks a reputation for avid reading.
Leonard Riggio, president of Barnes & Noble, is the pioneer behind the mega-bookstore concept. Superstores cost $1.3 million to set up, often occupy two-story buildings and carry some 100,000 titles, double or almost triple what some independents stock.
They offer lattes and cappuccinos inside the store next to areas for children's story hour. Customers are encouraged to sit in the wood-paneled or brick stores to read or visit with friends while soft music plays in the background. Plus, Barnes & Noble offers discount prices.
``Barnes & Noble market themselves as more upscale,'' said Robert J. Ruhl, business development manager at the Virginia Beach Department of Economic Development. ``They encourage you to peruse their books. It's a different shopping experience.''
Every bookseller in the area has a different opinion about who will be hurt by the mega-bookstore's arrival. Independents believe their neighborhood customer base will remain intact.
``When you're talking about a book lover, you're talking about a different breed,'' said Linda Wilson, co-owner of Bibliopath Bookshop and Bindery in Norfolk. ``A book lover will go to every bookstore.''
But she insisted, ``Megastores are not the same as having a personal, independent business with all the personal attention and love and caring you get there.''
Loyal customers, she said, will return to their favorite bookstores after the novelty of Barnes & Noble wears off.
Independent bookseller Harvey Eluto, owner of Bargain Books, said many independents have some quality that differentiates them from the standard megastore.
``We're kind of unique because we have both new and used books,'' the veteran bookseller said. Barnes & Noble's impact, he said, ``depends on where it's located, how far away it is and how many bookstores are in the area. I know that when one comes into the market, competitors usually don't let them come in to dominate the market.''
Eluto owns two bookstores, including one in Virginia Beach a few miles from the proposed Barnes & Noble site. He closed two Virginia Beach and Portsmouth stores years ago for slack sales.
Eluto expects business will suffer when the superstore opens, but says its presence is likely to raise the public's awareness of books.
``Historically, this area is not noted for reading per capita,'' he said. But the megastore ``could have an overall impact by making people more aware of books.''
Some book dealers contend that the chains will be hurt the most because they'll have to share their customers with the megastores, which in other cities have been taken business from mall bookstores. Some mall managers disagree.
``Being a chain, we have a lot of support, whereas the independents don't have that support,'' said Ben Robinett, manager of Waldenbooks at Pembroke Mall. ``We've got 1,100 stores across the United States. When you're dealing with that size, you get better deals'' from publishers.
Independent merchants already have started adjusting for Barnes & Noble. Janette Beuchler, owner of Turn the Page in Norfolk's Ghent area added several programs for regular customers, including a 10-percent discount club.
Although Beuchler is frightened by the megastore, she says it is likely to challenge existing booksellers, forcing them to redefine themselves and concentrate on what they do best.
``Every one of us merchants has to change or else we're not going to grow,'' she said.
Independent book merchants have an advantage, said David Beall of Riverbend Books in Virginia Beach. They understand the local market. And they'll willingly stock local works such as ``The Witch of Pungo,'' a folk tale by Louise Venable Kyle.
Some merchants, though, fear local book shops will close under the weight of a Barnes & Noble.
Asked if the area can support another bookstore, Eluto replied, ``The only way I can answer that is I hope so because the loss of bookstores in a community wrecks the fabric of the community - the cultural, educational aspect of the community.'' ILLUSTRATION: Color staff photo by Christopher Reddick
This view, looking eastward, shows the Columbus Village area, under
construction in Virginia Beach's Pembroke section (map).
Color photo
Gerald Divaris, real estate developer.
Color staff map
Area shown: Columbus Village, under construction, Future site of
"central park" concept, Central business district boundary
Graphic
Retail Sales
In Hampton Roads, in billions of dollars
For copy of graphic, please see microfilm
by CNB