What if your supermarket refused to sell Coke, or Best Buy only sold Disney DVDs?
Filed under: Shopping, Consumer Complaints
WH Smith, one of the most powerful and prevalent bookstore chains in the United Kingdom, has shocked the book world by signing a contract promising it will sell only travel guide books published by Penguin in its some 460 shops. From now on, no other guide books will be sold at WH Smith, despite the fact that it's often the only bookstore permitted to operate at countless train stations and airports.
That means any company that publishes a guide book offering an alternative view will now be shut out. No more Lonely Planet, no more Time Out, no more Fodor's, no more Frommer's, Berlitz, Brandt, or Michelin.
As the Daily Telegraph points out, this new deal is bad for consumers, and it sets an alarming precedent. Rough Guides, a dying Penguin imprint, offers about 80 titles, while Lonely Planet, which is now banished, has about 500. Penguin's diminishing market share is a big reason it was desperate enough to cut this deal.
A bookstore is in the information business, which means it's in the business of sharing ideas. Anyone who values the exchange of ideas should be alarmed to see exclusivity contracts creep onto the shelves of a bookstore. There's a difference between corporate windfall and profit that's earned in the marketplace.
At WH Smith, the market will no longer be truly tested. The new market at WH Smith is where a book publisher can be the highest bidder at backroom meetings, not which books sell best on the shelves. WH Smith is a sellout.
Competitive edge can end up wounding customers. It can even be anti-competitive. It's not as if customers can simply go to the bookstore next door instead. The chain has also signed an exclusive agreement to be the sole bookstore operating at seven of Britain's biggest airports, including Heathrow and Gatwick.
These exclusivity deals should disturb anyone who sees a future in which the information of their choice can be available at their neighborhood store. They certainly disturb me; I write three guide books, which is probably the only way I even noticed this dismaying development, which will probably slip past many people. And bit by bit, piece by piece, consumers lose a little bit more freedom and a little bit more choice.
It's as if the grocery store in your town said it would only sell Pepsi, or if you had to go to Best Buy to purchase Disney products and order from Amazon if you wanted something from Warner Bros. Exclusivity and enforced fragmentation is a lousy precedent to set in a free market, and it's especially unsavory considering it's coming from the publishing industry.
Typically, WH Smith tried spinning the deal by saying it would make browsing "easier for the customer." I'll bet they tried that one in communist Soviet Union, too, where there was one type of bread.
Unsurprisingly, calls for boycotts are growing in the U.K., but given the fact that WH Smith has a lock on airport and train station business and can survive on magazine and snack sales, the effect may be minimal.
I propose a new law: Any store that has signed an exclusivity agreement to be the sole operator at a public resource such as an airport should not be permitted to deliberately freeze out any manufacturer in sub-exclusivity agreements. For the good of the customer, the market should decide.



Reader Comments (Page 1 of 1)
6-10-2009 @ 8:31PM
Theresa Small Smith said...
You should choose who you do business with since property piracy is a growing scam around the world...WH Smith in America although operating in some areas is not occupied by his relatives but their enemies, the identity theft gang aka Sybils and their brothers, husbands, etc, and closing out rapidly...hopefully the London operations will survive and that his family continue to keep their legacy...they've stolen mine and my husband's his family company is now FAO Schwarz not Schwartz...why??? PS, I suspect the identity thieves are in London now, stalking, stealing cause they followed Obama. TSS.
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6-11-2009 @ 7:05AM
PHMF said...
You're absolutely right, Jason. A shameful move on WHS' part and very frightening.
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6-11-2009 @ 1:26PM
JM said...
It's not a question of free speech. It's a question of what a particular retailer chooses to stock in the environment of a train station or airport in order to satisfy their customers. There are lots of things people would never expect to find at an airport shopping centre - including a really in-depth selection of books, as airports tend to specialise in what has become known as airport fiction, ie the bestsellers! Maybe we will now have the Poetry Society marching on Stansted to complain that you can't get a decent edition of TS Eliot there.
Ultimately, a retailer like WH Smith will do what makes them the most money. If the public really wants shelves laden with each and every travel guide currently in print, as opposed to shelves of souvenirs, chocolate bars and mosquito repellent (which is what WH Smith seem to sell lots of), then I'm sure that the buyers will figure that out and change this policy. But until then, I guess we've lost the freedom to choose any travel guide we want - unless we can be bothered to look at Amazon, go to a WH Smith which is not in an airport, or a Waterstones, or a Blackwells, or Borders, or an independent bookshop . . . oh gosh I can't believe how much our choice has been limited!
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6-12-2009 @ 5:40AM
zenji said...
not dissimilar to what Wal-Mart did a few years back with "offensive" cd's and music
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