The Impacts of E-Commerce on Book Retailing: A Case Study of Indigo Books & Music Inc.

The rise of e-commerce has sparked many changes in the retail industry, particularly for retailers who deal information goods such as books. This research paper explores both the spatial and non-spatial strategies employed by Indigo Books & Music Inc., in the Greater Toronto Area in order to maintain relevant in a rapidly transforming book retail market. Spatial strategies employed by Indigo include a shrinking store network focused on maintaining a physical presence in areas of high customer traffic, a priority on the superstore format, and pattern of store closures and consolidations focusing on these high traffic locations. Non-spatial strategies were observed in the form of Indigo adopting operational changes such as the transformation of its physical stores into cultural department stores, an emphasis on the retail experience, and the integration of a multi-channel retail approach. Indigo’s adoption of these spatial and non-spatial strategies make it a prime example of a company who has successfully adapted to impacts of e-commerce on Canada’s contemporary retail landscape.