From Monki to Co-op, it’s a tough time for the British high street, with dozens of shops shutting or going under.
But Waterstones is bucking the trend, and is set to expand in 2025.
Once written off, the bookshop has announced they’ll be opening new stores this year, following a ‘solid Christmas’ trading period.
Waterstones boss, James Daunt, said the business opened 12 new stores in the UK last year in what he called a ‘really significant expansion’ with plans to ‘do more in 2025′.
But it hasn’t always been smooth sailing for the beloved brand.
Over a decade ago, Waterstones was on the brink of closure. When Daunt took over in 2011, the chain was reportedly near collapse.
‘We came within a millisecond of losing everything. We were dead in a ditch,’ Daunt reportedly said in 2014, as the company began to recover.
Back then, the brand faced tough competition from Amazon, e-books and shifting consumer habits which transformed the industry.
It also struggled under previous ownership, the HMV group, who purchased the chain in 1998.
Fans of the shop took to X, then Twitter, at the time, sharing their concern about the future of their favourite shop.
‘Omfg is Waterstones closing down I’m crying that’s the best book shop in the world,’ wrote user Jess, back in 2012.
And in 2011, after closures were announced, Pippa wrote: ‘I’m shocked about Waterstones. Love that shop… Sad. Hope there will still be bookshops for our kids.’
And also in 2011, Leah said: ‘Borders is gone. Waterstones is about to be gone. Why are they closing all the bookshops!?’
But Daunt managed to turn around its luck by closing underperforming stores and focusing on selling physical books, stopping the sale of Kindle e-readers in 2015 after recognising a stagnation in the market.
The store even managed to survive the pandemic, seeing a rise in profits after lockdown ended.
The changes paid off. By April 2022, Waterstones reported a £42.1 million profit after tax, a big jump from £2.9 million the previous year.
It follows the trend of physical books being back in fashion, largely thanks to Gen Z. Research from Nielsen BookData found that Gen Z has a strong preference for print, with physical books accounting for 80% of their purchases from 2011 to 2022.
Platforms like TikTok, particularly ‘Booktok’ – one of the largest communities on the app with over 243 billion views – have breathed a whole new lease of life into print.
It’s not only reignited a love for literature but sparked a cultural shift – as younger readers build up their libraries through recommendations found online.
The demographic is primarily young women yet the impact it has had is massive. For example, in 2022, 669 million books were sold in the UK, the highest overall level ever recorded.
The trend has undoubtedly benefitted bookstores, including Waterstones, which returned to Oxford Street after an eight-year hiatus last year. The retailer also opened a sizeable space inside John Lewis’s Oxford Street store in October.
And shoppers couldn’t be happier about Waterstones’ return. The bookstore celebrated its re-opening on X writing ‘Back on Oxford Street baby!’, with users expressing their excitement.
User @louise_candlish wrote: ‘Hoorayyy’, while @samuellburr added: ‘This is very exciting to me.’ Another @matineeegirl wrote: ‘So exciting! I might try and pop in tomorrow.’
Founded in 1982, Waterstones boasts over 290 locations across the UK and Ireland.
The expansion comes despite pay inflation, which James Daunt described as ‘really significant’ for the business. Despite rising costs following October’s Budget, the chief executive backed the announcement.
Instead, he said the most significant issue for Waterstones is the aftermath of Brexit. ‘It remains the biggest pain, adds to the cost and complexity and made our labour situation worse.’
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