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Summary

In this interview, Emily Powell, owner and president of Powell's Books, discusses the challenges faced by the iconic independent bookstore during the COVID-19 pandemic. She talks about the initial decision to shut down the store, the transition to online sales, and the impact on revenue and staff. She also delves into the reasons behind the bookstore's success and the importance of supporting independent businesses.

Questions & Answers

Q: How did Powell's Books cope with the challenges of the pandemic?

Powell's Books made the decision to shut down the store and lay off most of its employees in order to prevent the spread of the virus. They were able to keep their internet business going and experienced a spike in online orders in the first few weeks of the shutdown. The store later reopened with limited hours and a different experience for customers.

Q: How has the pandemic affected Powell's overall sales and revenue?

Powell's overall sales and revenue have been significantly impacted, with a decrease of about 75 to 80 percent. While the internet business has become a more substantial portion of their sales, it cannot replace the in-person experience of their store. Both the online and in-store aspects of the business are needed to support the company and its employees.

Q: How did Powell's manage to bring back some of their employees?

Powell's received a loan through the Paycheck Protection Program (PPP), which allowed them to bring back some employees and continue operating through the summer. However, the funds from the loan are now exhausted, and the future remains uncertain. Powell's is trying to find creative ways to generate business and manage expenses during these challenging times.

Q: Why did Powell's decide to pull out of Amazon as a sales channel?

Powell's made the decision to end their partnership with Amazon because they wanted to focus on their own business and customers. While Amazon provided a substantial amount of sales, Powell's believed that depending on Amazon for success in the long run was not beneficial. They wanted to support the local community and contribute to the local economy, which Amazon does not prioritize.

Q: How has Powell's adapted their in-store events during the pandemic?

Powell's has shifted to virtual events, which have seen good turnout. However, the experience of in-store events cannot be fully replicated online. Powell's acknowledges the challenge of finding ways to replace the in-store experience and is continuously working on improving its virtual offerings.

Q: How does Powell's stay competitive with other online sellers, considering the potential price discrepancies?

Powell's acknowledges that it is challenging to compete on price with online sellers like Amazon. Various factors contribute to price differences, such as the discount given to Amazon and the costs associated with running a physical bookstore. However, Powell's focuses on providing value in other areas, such as knowledgeable staff recommendations and supporting the local community.

Q: What steps has Powell's taken to keep costs down during difficult times?

Powell's has taken measures such as delaying repairs and adopting a resourceful and creative approach to essential expenses. They prioritize what is necessary for the core operation of the business and look for ways to manage costs without compromising the essential parts of the bookstore.

Q: Why has Powell's chosen to remain solely in Portland and not expand to other cities?

Powell's believes that a successful independent bookstore requires a deep understanding of the local community, which takes time to develop. They also consider the financial viability of other locations, which often lacks the necessary combination of high pedestrian traffic and affordable rent.

Q: Are consumers showing a deliberate preference for supporting independent businesses like Powell's?

Powell's has received support from customers who consciously choose to support independent businesses, recognizing the value they bring to the community. This has been particularly evident during the pandemic, although Powell's has enjoyed such support for many years.

Q: What strategies will Powell's continue after the pandemic ends?

Powell's aims to maintain the lessons learned during the pandemic, such as being more flexible, creative, and emotionally intelligent as a business. They have discovered the importance of recognizing the full human experience of employees and customers and plan to prioritize this going forward.

Q: Can Emily Powell recommend any books she's currently reading?

Emily Powell mentions that she has been reading a lot of poetry due to time constraints, specifically mentioning books by Jericho Brown. She also mentions Midnight's Children by Salman Rushdie as a novel she plans to read and discusses the joy of having multiple books to dip in and out of.

Takeaways

During the COVID-19 pandemic, Powell's Books faced significant challenges as an iconic independent bookstore. They made the difficult decision to shut down their stores and lay off most employees. While their online sales helped sustain the business, overall sales and revenue decreased greatly. Powell's emphasized the importance of being resilient, flexible, and creative during these trying times. They decided to cut ties with Amazon and focus on their own business and community. Despite the challenges, Powell's received support from customers who consciously chose to support independent businesses. Looking ahead, Powell's plans to maintain lessons learned and prioritize the overall human experience within their business.