Waterstone's clash with indies

Waterstone's said this week that letters to independent publishers demanding standard terms, including a standard discount of 50%, were part of a "professionalisation" process at the chain. The letter said that the terms would be applied from 6th November.

The letter—signed by Chris Rushby, head of supply chain—and sent recorded delivery, outlined new standard terms and conditions of supply, the most controversial of which was an increase in the standard discount to 50%, from an average of 35%. The terms would come into effect next Monday even if recipients failed to reply.

Small publishers reacted furiously, balking at discount increases ranging from 25% to 100%. Several said they would cease to supply the chain. Others planned to complain to the Office of Fair Trading for alleged abuse of market position.

"I am appalled that they believe they can deal with people in this way, and that they can give so little yet expect so much," one publisher said. He added that he would find it impossible to supply books at the new terms.

Julian Davidson, general manager of local publisher Halsgrove, reacted by cancelling Waterstone's events and issuing a press release stating that Halsgrove would no longer supply the chain.

Mike Grover, Multilingual Matters m.d., described the letter as "bullying". He has written to the chain to say that books will be supplied only at existing trade terms.

Mr Rushby was unrepentant, describing the withdrawal of supplies as "unfortunate, but publishers' prerogative". "It is about Waterstone's professionalising and understanding its costs better." He added that the letter was part of continuing attempts to make more professional the chain's relationships with publishers, with which no formal agreements had existed.

Present arrangements were "unacceptable and uneconomic" for the chain, he added. "Waterstone's is making a loss when it sells those publishers' books," he said, although he added that in specific circumstances the chain was willing to enter into discussions with suppliers.

For example, he said: "We would listen carefully to representations from academic publishers, given the arguments about the cost of academic versus trade publishing."