40% of Bookstores in the Red; Market to Stay Above 1 Trillion Yen but Down 20% from 10 Years Ago; 610 Companies Bankrupt or Closed in Past Decade; Business Model of Selling Physical Books at a Crossroads

Teikoku Databank, Ltd. conducted a survey and analysis of the "bookstore" market nationwide.

SUMMARY

The "bookstore market" nationwide (based on business operator sales) is projected to remain above 1 trillion yen in fiscal year 2025 due to the expansion of non-book sales such as hobby items. However, this represents a 20% decrease from fiscal year 2015 (approximately 1.4 trillion yen). If this trend continues, the bookstore market could fall below 1 trillion yen within a few years.

[Survey Target] Retail trade of books and magazines

[Note] Data on business performance, etc., was compiled based on the company profile file (COSMOS2, approximately 1.51 million companies) and corporate credit investigation reports (CCR, approximately 2 million companies) held by Teikoku Databank as of June 2026, as well as external information.

Performance figures for fiscal year 2025 include some estimates and projections.

40% of Bookstores in the Red; Market to Stay Above 1 Trillion Yen but Continues to Shrink

In addition to a decline in reading among young people, the rise of online bookstores and the spread of e-books have put bookstores, whose sales are centered on magazines and comic books, in a continued difficult management situation. The "bookstore market" nationwide (based on business operator sales) is expected to remain above 1 trillion yen in fiscal year 2025. However, this is largely influenced by the expansion of non-book sales such as hobby items, and the market size has shrunk by 20% from fiscal year 2015 (approximately 1.4 trillion yen). If this pace continues, the entire bookstore market could fall below 1 trillion yen within a few years.

Looking at performance trends, the percentage of bookstores that saw an increase in sales from the previous year in fiscal year 2025 was 13.8%. This fell back into the 10% range for the first time in two years and was the lowest since the COVID-19 pandemic. On the other hand, the proportion of those with "sales similar to the previous year" (58.9%) was the highest in the past 20 years, and "decreased sales" (27.3%) rose for the first time in five years, indicating a growing stagnation in bookstore sales. In terms of profit and loss, "decreased profit" accounted for 31.0%, and "operating at a loss" accounted for 38.7%. The combined percentage of bookstores with "worsening performance" (loss and decreased profit) was 69.7%, the highest level since fiscal year 2022 (72.3%).

Bookstores that rely on comic book sections for customer traffic saw some hits like "Frieren: Beyond Journey's End" and "The Apothecary Diaries," which became huge hits due to anime adaptations, in addition to perennial series like "ONE PIECE." However, they struggled to generate the kind of massive one-off demand seen with "Demon Slayer: Kimetsu no Yaiba" during the COVID-19 pandemic, and their performance was largely lackluster. The spread of e-books, subscription reading services, and online shopping has also contributed to a decrease in opportunities to purchase books at physical stores, leading to the contraction of the bookstore market.

On the other hand, many bookstores were forced to record losses due to the heavy burden of "tenant rent" to maintain large sales floors, increased "labor costs" due to minimum wage hikes, and a decrease in the sales volume of standalone books.

Amidst this business environment, the exit of bookstores from the market remains at a high level. Since fiscal year 2016, a cumulative total of 610 bookstores have exited the market due to bankruptcy or business closure. Furthermore, according to the Japan Publication Infrastructure Center (Tokyo, Chiyoda), the number of bookstores nationwide is expected to fall below the 10,000 mark by the end of fiscal year 2025, with 9,993 stores, indicating a continued contraction of the bookstore market. In response, major bookstores are beginning to implement reforms aimed at achieving a gross profit margin of 30% on book sales. However, currently, small and medium-sized bookstores are shrinking their shelves of slow-selling books and magazines and shifting towards "non-book businesses" such as entering the hobby sector, which has extremely high revenue per square foot. This places the business model of selling physical books in brick-and-mortar stores at a crossroads. For bookstores to continue to exist in their communities, it is time to consider store designs that go beyond the traditional definition of a "bookstore," with external support from the national and local governments.