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Key Findings Since Release of March 2006 Report

Since the release of the Bookstore Review Committee’s report in early April, the committee has conducted a series of meetings with campus groups to discuss the report, solicit feedback and receive questions.  Over the course of March and early April, the committee met with the Faculty Executive Committee, the full faculty, Medical Student Senate, Undergraduate Council of Students, Graduate Student Council, Staff Advisory Council, Brown University Community Council, Medical Faculty Executive Committee, and Brown Bookstore Staff. 

Also since the release of the report, committee members investigated questions and concerns relating to the bookstore and the operating model options.  Following is a summary of what the committee learned:

  • There is strong campus community support for the goal of maintaining the independence of the Brown Bookstore versus outsourcing to a vendor.  Brown values uniqueness and independence, and many in the community feel that the Bookstore should be a manifestation of those values.
  • Current Bookstore employees value highly their status as employees of Brown, not only with respect to issues of pay and benefits, but with respect to their connection and commitment to the Brown Community.
  • Members of the community recognize the need for material improvements within the Bookstore.
  • A vendor model would involve less risk and less control.  An improved self-operation model would involve more risk and more control.
  • The goal of maintaining favorable text book prices and return policies is important and can be accommodated under either the self operating or vendor model as a matter or policy or contract.
  • Improvements in our tradebook selection and inventory can be accommodated in either model.
  • There are a few instances of vendors agreeing not to compete with existing, neighboring bookstores and thereby limiting their offerings.
  • Books currently available for purchase by Brown as an independent store would remain available for selection under the vendor model.
  • Both models provide substantial support for small and independent presses and would carry every requested publication authored by a faculty member.  Small and university presses face considerable challenges and these challenges are a function the industry at large.  Ordering and return practices of large vendors may negatively impact the margins of small and independent presses.
  • Both models have the ability to produce a more attractive store that could have a positive complimentary (non competitive) impact on Thayer Street and the local business community.
  • The local economic impact of a vendor managed Brown Bookstore is not analogous to introduction of a national retail bookselling chain to Thayer Street.  A vendor is more likely to provide greater economic support to local organizations and charities than the store currently provides.  As to purchases from local vendors, the overwhelming majority of goods purchased by the bookstore already come from non local vendors due to the nature of the business.  [Our bookstore manager estimates that over 95% of our purchases are from non-local vendors].
  • The Bookstore currently pays property taxes and would continue to do so under either model. The Bookstore currently pays the university for space, utilities and for administrative systems support. These payments total approximately $800,000 per year and represent to a large extent reimbursement for real costs incurred by the University. The Bookstore’s ability to absorb the costs of renovations and enhanced systems as an independent is more limited. The vendor model would provide greater financial capacity and flexibility.
  • Expert resources in campus bookstore operations, back office systems, retail management, personnel systems, training and development and store layout and design are available in both models.  Under self operation, these resources would need to be acquired individually. Under the vendor model, these resources are part of the vendor’s organization.
  • A vendor operation would provide economies and efficiencies that would be difficult to match in a self operation model such as:  favorable pricing on fixtures and equipment, favorable prices on construction materials such as wood and steel, more favorable contracts with credit card companies, inventory management, availability of in-house architects and favorable purchase arrangements with large apparel licensees, loss prevention policies and technologies, computer systems purchases and upgrades.
  • Automated departmental charges, declining balance cards, student charge accounts (interface with student term bill systems) can be supported under either model. The success of used textbook sales is primarily a function of professors agreeing to adopt an existing textbook early in the ordering process.  When this is done, bookstores under either model can solicit students to sell used texts books before the end of the semester, offer higher student buyback prices and procure sufficient quantities.  While margins are higher for used textbooks, there are also higher processing and handling costs.
  • Brown could enter into a contract with a vendor to control pricing, return policies, employment practices, product selection, etc.  We do not know, however, what the exact financial impact would be of such conditions unless we enter into detailed negotiations.
  • To date, a comprehensive business plan for self operation has not been developed.  A plan presented in 2004 included conceptual drawings but did not include a management or financial plan to qualify it as a viable self operation business plan.
  • Prior to the release of the report of the Review Committee, data and conclusions of the CBC report were reviewed by the Bookstore management, administration and the Review Committee.  As with other sensitive financial and comparative information, these have not been shared broadly but primary conclusions have been shared with all Bookstore staff.
  • An improved self operated model could provide a greater selection of books, more depth and breadth of academic titles, a decreased emphasis on merchandise, expanded hours and more out-reach to neighbors, more consistent service, an improved design/layout of store to make it more comfortable and inviting, reliable, integrated back-office systems, more books and supplies to better serve medical school community, computer store products and services better integrated with CIS, continued favorable textbook pricing (new and used) and return policies, continued emphasis on used book offerings.  Such improvements, however would require retail expertise (beyond our current staff) to help with planning, product selection, space allocation, store layout and design and finances.  It would also require sustained management expertise to stay abreast of industry trends and changes.
  • Either operating model could renovate the store with a look that is unique to Brown.
  • Improving the store would likely require organizational changes under either model, although the changes would not necessarily be the same.
  • Brown employee benefits are more favorable than the typical benefits offered by the vendors to their employees.
  • Engagement of a vendor would not lead to unreasonable job demands or a diminution of wages and benefits.  It could, however, result in some employees opting to resign.
  • Vendor employees visited by Brown Bookstore staff during recent visits to Yale, Harvard and Dartmouth seem to enjoy their jobs and are very pleasant and cooperative.  The overall situation for these employees prior to the engagement of the vendor at these locations was less favorable, however, than it is currently for employees at Brown.
  • Regardless of the operating model chosen, the employees who work in the bookstore should do so as employees of Brown University subject to Brown’s policies on wages, benefits, and working conditions. Both models would operate with the guidance of a new bookstore advisory committee of students, faculty, staff and administrators.