Arts and crafts retailers, which in recent years have sold a limited number of adult titles, are aggressively expanding their presence in the children's book market.
"It's the perfect market for us," said Ben Ferguson, president of Bendon Publishing, referring to major arts and crafts chains Michael's, Jo-Ann and A.C. Moore. "They're aggressive in terms of the square footage they give to children's books. Grandmothers and mothers and teachers shop there, and that's our audience."
"Their customers understand books, and these outlets understand the importance of books to their customers," added Andrew Steinberg, president of Modern Publishing. "This has always been a viable business, but they're adding to the selection now. Their customers are looking for crafts, but they're also looking around for good values."
About a third of the approximately 1,000 Michael's stores feature a 25-foot children's book section. "Our goal is to supply Michael's with books that sell their products," said Nancy Pfannkuch, buyer for crafts and children's books at HDA, the chain's new distributor. HDA is working with Michael's to bring children's books into some of the craft aisles as well, and recently introduced a "book cube" that displays seasonal children's books along with adult titles.
Jo-Ann, which has nearly 900 outlets, is expanding beyond the typical arts and crafts book, said Becky Jones, v-p and general merchandise manager of crafts. "We see [children's books] almost as a jumping-off point for kids' activities and crafts." Jo-Ann has a kids' activity section that includes coloring/activity titles, and it displays value books on endcaps. Its Book Central department features craft books for both adults and children, and its educational programs, especially its Summer Kids' Camps, incorporate children's books.
All 125 A.C. Moore stores feature a children's book department, and about 95% of children's book purchases are on the planogram handled by children's buyer Tom Haley. The remainder are promotional titles, overseen by buyer Michele Dougherty. "It's a very significant category for us," Dougherty said. The planogram selection is weighted toward coloring/activity and value-priced titles ($3 and under), such as Modern's and Playmore's hardcover illustrated classics, which are often displayed on tables at the storefront. Dougherty is interested in exclusives as well; Modern, for example, has created packs of digest-sized sudoku books, pirate-themed coloring books and coloring/activity titles based on its I Love You storybook.
Much of the activity in the arts-and-crafts channel centers on lower-priced and value-added titles—board books, pop-ups, illustrated storybooks, books packaged with stickers or jewelry. Price points range from $1 bargain books to $25 or so, with the sweet spot typically under $10. "Anything with a higher perceived value does well," said Christina Conde, Simon & Schuster's director of special wholesale.
Several publishers have been adding titles appropriate for this channel. Bendon has supplemented its mix with more crafts kits, such as book-plus-pencils, sharpeners and stickers, especially with its licensed titles, which account for as much as 80% of the company's product in arts-and-crafts stores, Ferguson estimated.
S&S's new Simon Scribbles coloring/ activity imprint appeals to crafts retailers, according to Frank Fochetta, v-p of field and special sales. Novelty titles under $10 are strong performers, both generic and licensed varieties, he added, with Barbie books (distributed for Reader's Digest) and S&S's own Nickelodeon titles among the standouts.
For Penguin Books for Young Readers, bestselling formats are primarily lower-end children's books—sticker stories, board books and Mad Libs, said Fran Corea, director of gift sales. Joan DeMayo, senior v-p and director of sales at Random House Children's Books, said titles priced from $1.99 to $3.99 drive the business, citing Thomas the Tank Engine and Disney Princess coloring/activity titles as top performers. "Higher-end storybooks and novelty have also done well in some cases, providing reason to believe there's room for growth in the channel," she said. The Green Eggs & Ham Cookbook, for example, was a strong seller at Michael's last fall.
For adults, crafts chains focus more directly on arts and crafts titles, including inspiration and how-to. Adult-targeted books are typically merchandised with the related craft (papercrafting titles with papercrafting supplies, for example), or in a book department, such as Jo-Ann's Book Central. Chains sometimes bring in promotional titles for adults as well, such as cookbooks, sudoku or others that appeal to their predominantly female customer base.
"These stores have become an important destination for books," Bendon's Ferguson concluded, "simply because of the selections these retailers have committed to."
