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To: Glenn D. Rudolph who wrote (31369)	12/29/1998 11:11:00 AM
From: Glenn D. Rudolph	Respond to of 164684

ecember 29, 1998 10:30 FEATURE-Bookstore closing is same old story -- with a twist By Andrea Orr PALO ALTO, Calif. (Reuters) - A big bookstore chain moves to town and the local independent book seller is forced out -- it has become a familiar story around the country that even serves as the premise that brings two lovers together in the popular new romantic comedy movie, "You've Got Mail." But when Printers Inc., a popular independent bookstore in this town, recently announced it was shutting its doors, there was a twist. Along with blaming the superchains for squeezing its profits, Printers Inc. pointed a finger at a different breed of competitors: Amazon.com, barnesandnoble.com and all the new technology that allows consumers to buy books without ever entering a bookstore. "I feel like Amazon.com is the straw that is potentially breaking the camel's back," said Gerry Masteller, co-owner of Printers Inc. since it opened 20 years ago. The store is a Palo Alto institution, a place that will host a reading by Norman Mailer one night and a high school poetry class the next. It enjoys a steady flow of visitors who come to read in its spacious cafe, chat with its well-read staff or browse its selection of books by local writers that the chains stores often do not stock. But these days fewer of its loyal visitors are making it as far as the cash register. "There is a new phenomenon out there of people coming in to browse physical book stores and then going home to buy from Amazon," Masteller explained. BETTER PLACES THAN HOME At first glance, it might seem a book store could not pick a better place to do a thriving business than Palo Alto. The town has a large population of college students as well as professionals who work in the computer industry in Silicon Valley and who have considerable disposable income. Without the diverse entertainment options of bigger cities, Palo Alto is also a place where bookstores serve as cultural centers. One small downtown strip has four in close proximity and all are crowded most evenings. But locals say it is no coincidence that online booksellers are having a disproportionate impact here. Many of the people who live in this community are more than just casual Internet users. They are the ones who designed the software or launched the businesses that spearheaded the digital revolution. Shopping online comes naturally to them. "I think especially in their neck of the woods -- in Silicon Valley -- you have a higher level of computer awareness and computer use," said Hut Landon, executive director of the Northern California Independent Booksellers Association. "It's a total bummer," said Joe Kraus, a founder of the popular Internet service Excite Inc. who knows of Printers Inc. from his student days at nearby Stanford University. "I like the fact that Printers Inc. has a coffee bar and it has a real independent feel to it. But I think (its closing) is an interesting trend that will continue," he said. "The efficiencies of selling online can be tremendous and Printers Inc. didn't have the scale of some of the big chains." TROUBLE.COM Clearly the online bookselling phenomenon is not the only thing threatening independent book stores. Printers Inc. also blames rising rents in one of the highest-rent districts in the country along with the big chain stores that by sheer virtue of their size can run a vastly more efficient business. While Amazon dominates a growing online book business, many bookstores see a bigger threat from Barnes & Noble, which has both a physical and an online presence and agreed last month to buy the biggest U.S. book distributor, Ingram Book Group. That deal has sent waves of outrage through the book community from the smallest independent shops all the way up to Amazon.com. They all buy many if not most of their books from Ingram and say it would mean feeding profits to a rival, Barnes & Noble, if the purchase goes through. The Federal Trade Commission has been looking into the matter. But among book consumers here, who are as loyal to their community as they are to their computers, the news set off a small backlash over the potential consequences of e-commerce, and the concern was generally directed at Amazon. "Are you a person who went to Printers Inc., browsed for books, had a cup of coffee, then went home to your computer and ordered the book from Amazon.com and saved a couple of dollars?" one Palo Alto resident wrote in a letter to the local newspaper. "Then you deserve the Wal Marting of California Avenue and other neighborhood retail centers."