Letter to Scholastic from ABA

March 12, 2003

Michael Jacobs
Senior Vice-President, Trade
Scholastic, Inc.
555 Broadway
New York, NY 10012
Tel: 212-389-3776
Email: [email protected]

Dear Michael:

I’m writing on behalf of the numerous bookstore members of ABA who have communicated their distress and anger over Scholastic’s decision to pre-sell Harry Potter and the Order of the Phoenix through the upcoming Scholastic book fairs. This action can only be described as an assault on your retail customers.

Booksellers and ABA had hoped that through careful planning and hard work the distribution of Harry Potter and the Order of the Phoenix would go smoothly and equitably -- with all retail distribution outlets playing an appropriate role in what would be a great success. That is the scenario that would have been to everyone’s common advantage. But that hope was, apparently, foolishly optimistic.

The strategy of pre-selling the new Potter at school book fairs for actual distribution to the public from your warehouses on June 21, 2003, eliminates the retail distribution channel, from wholesaler to bookshop (independent or chain). This is simply beyond the pale. It is a shortsighted act of ill will. Ill will, I might add, at a time when you and your executives are traveling around the country offering public assurances to booksellers that that Scholastic, Inc., really cares about the well-being of bookshops. I can tell you that many booksellers feel duped.

Booksellers nationwide are gearing up for a giant launch. They are planning parties, staging events, running contests, spending huge portions of their annual marketing dollars, and all in a desire to capitalize on what should be a great event. Think of it…. A remarkable author writes a great book that is published by a fine publisher and sold by eager booksellers of all kinds to a public anxiously awaiting the new arrival. Wouldn't that have been a grand slam home run for the entire industry?

Scholastic’s history of going directly to the consumer has always been a suspect activity. Please do not misunderstand this statement. There is nothing, in our opinion, illegal in selling directly to consumers but rather, it says loud and clear that Scholastic doesn't believe that a healthy retail distribution channel is in the best long-term interests of Scholastic and the entire industry.

This will be the biggest publishing/bookselling event of the year. Bookshops, by promoting your book, will create goodwill, credibility, and profitability for themselves AND for Scholastic. Scholastic is undercutting retail distribution, and not for the first time. And with a book as important as this, such a move can be particularly devastating for many booksellers, and going directly to the consumer (your customer’s customer) months BEFORE the publication date is both obdurate and callous. You are undermining all of the effort being put forth by booksellers nationwide, and it simply defies belief.

I hope Scholastic will immediately reevaluate this unfortunate decision, and I very much look forward to hearing from you.

Sincerely,

Avin Mark Domnitz
CEO, ABA