On June 5, four publishing executives informed the New York Times of Costco's plan. They were informed by the warehouse retailer that they intend to discontinue routinely selling books at its locations across the United States, to the dismay of writers and publishers.

Starting January 2025, Costco will no longer regularly carry books. Instead, they will only be sold during the September through December holiday shopping season. According to the executives who spoke anonymously to discuss a secret business situation that has not yet been made public, some books could occasionally be offered at Costco shops for the remainder of the year but not consistently.

The executives stated that the labor-intensive nature of stocking books was a major factor in Costco's decision. Unlike other items frequently put out on a pallet at Costco, book copies must be set out by hand, leading to more manpower. The frequent turnover of books, which occurs every Tuesday when new ones are released and those that have sold must be returned, also resulted in more work.

When asked to comment regarding the decision on the same day, a Costco representative did not immediately respond.

Impact on the Publishing Industry

This shift could negatively impact the already struggling publishing industry, with the entire industry facing lackluster print sales and publishing houses having difficulty reaching their customers who moved to reading online.

According to Circana, a renowned expert on the complexities of consumer behavior, the annual print output for the U.S. book business was 767 million in 2023, a 3% decrease from 2022.

In 2023, adult fiction was the most successful genre, with fiction print sales an increase of 1%, or 1.5 million volumes, over the sales in 2022. Coming-of-age, fantasy, romance, and historical fiction themes were the main drivers of this growth. Adult fiction sales in the United States have increased for the sixth consecutive year, attributed to the lockdowns during the epidemic. The young adult market also grew due to the thriller, romance, and dystopian genres.

However, the fourth-quarter increase in sales and annual gains in young adult and adult fiction were not enough to counteract the decline in sales, which was mostly caused by the children's category.

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Two-thirds of the market decline in 2023 was attributed to the kids' book category, which had the greatest drops in the industry, selling 13.5 million fewer books than in 2022. The decrease in fiction sales was driven by works of fantasy, magic, and comedy, as opposed to the previous year's strong sales. Activity books, holiday books, and Bluey licensed books were among the pockets of increase in sales. The number of non-fiction books for children decreased, with study guides and activity books showing the sharpest drops and biography and religion showing the two biggest increases.

Despite not being as important as bookstore chains like Barnes & Noble, Costco has given people access to books they may not have otherwise sought, allowing them to pick up a new book while shopping. Costco also offers book browsing, which is challenging to accomplish online. Costco has previously discontinued book sales in some locations, such as Alaska and Hawaii.

Meanwhile, executives in the publishing sector reported that some big box stores have had some success with the book category, so they still plan to carry them.

Concerns About Book Sales

Brenna Connor, the director of U.S. Books at Circana, said that stores like Costco or Target are important for the book market because they are easy places to grab the latest in a series a customer is reading. This is also beneficial to parents who want to buy books for their kids.

This decision may also impact book sales. When Costco decides to stock a book, it is often in bulk, ordering tens of thousands of copies at a minimum, similar to their other items. For major book hits and bestsellers, Costco may stock hundreds of thousands of copies of a single title.

Literary agent and chairman at Trident Media Group Robert Gottlieb said he discussed the changes at Costco with various publishers, and they were alarmed by the potential impact this decision will have on book sales. Gottlieb mentioned that Costco, having chains all over the country, is a huge outlet for books, worrying about the fewer places to find books in retail as a result.

Additionally, the shift can impact Costco consumers who live far from bookstores. Some of those sales may not transfer to Amazon or Barnes & Noble because many of the book purchases at Costco are based on impulse.

Customers' Reactions

Some customers voiced their opinions on the matter online. They are disappointed that Costco will remove the book section entirely. One customer said they saw the book section decrease from taking up ½ of a row to ¾ of a row and now ¼ of a row. Some customers also noted that the section disappeared entirely from Costco in their area during the COVID-19 pandemic and never returned.

However, posters were especially disappointed that even the kids' book section would be removed. They cited fond childhood memories of buying books from Costco with their parents. Parents also expressed disappointment that they cannot easily buy their children books anymore.

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