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Waterstones

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Waterstones Booksellers Limited
Company typePrivate
IndustryRetail (books)
Founded1982
FounderTim Waterstone
Headquarters
London
,
United Kingdom
Area served
United Kingdom, Europe
Key people
James Daunt (Managing Director)
ProductsBooks, stationery, complementary merchandise, café services
OwnerElliott Investment Management
Number of employees
3,500 (2014)
Websitewww.waterstones.com

Waterstones Booksellers Limited, operating under the name Waterstones (previously known as Waterstone's), is a prominent UK-based book retailer with its headquarters situated in London. The company is owned by the American investment firm Elliott Investment Management and manages a network of 311 stores, primarily located throughout the United Kingdom and neighboring regions.[1] As of February 2014, Waterstones employed roughly 3,500 individuals across the UK and Europe.[1]Cite error: Closing </ref> missing for <ref> tag

In 2001, Waterstones introduced Waterstones Books Quarterly, a publication featuring literary critiques and interviews with authors. That same year, the company franchised its online platform to Amazon.com, enabling it to concentrate on its physical outlets but resulting in the loss of approximately 50 positions.[2] Additionally, in 2003, Waterstones collaborated with Dyslexia Action to promote awareness about dyslexia.[3]

In 2006, Alan Giles resigned, and Gerry Johnson was appointed managing director of Waterstones,[4] while Simon Fox took over as CEO of the group.[5] In April of that year, Tim Waterstone attempted a £256 million buyback from HMV but retracted his offer due to what he described as "punitive" terms.[6][7] Later that year, Waterstones terminated its franchise agreement with Amazon and relaunched its own website, Waterstones.com,[8] piloting a customer loyalty scheme initially in South-West England and Wales before expanding it nationwide as The Waterstones Card.[9]

Starting in 2007, selected stores underwent a brand refresh,[10] with the first store closure occurring on Old Brompton Road in November.[11] In 2008, a new centralized warehouse and distribution facility was established in Burton-upon-Trent, consolidating supply chains by replacing direct deliveries to individual stores; this restructuring resulted in approximately 200 job cuts.[12][13] That year also saw an exclusive two-week launch of the Sony Reader across both Waterstones and Sony Centre outlets, offering e-books in the .epub format.[14] In November 2009, Waterstones entered the second-hand book market through a partnership with Alibris, introducing Waterstones Marketplace online.[15]

In January 2010, HMV Group revealed an 8.5% decrease in like-for-like sales at Waterstones during the Christmas period,[16] prompting managing director Gerry Johnson to step down. He was succeeded by Dominic Myers, formerly managing director of academic bookseller Blackwells and an HMV executive responsible for integrating Ottakar's.[17] Myers launched a three-year strategy aimed at tailoring stores to local markets, revitalizing the brand,[18] and broadening product offerings. A fresh brand identity crafted by VentureThree was unveiled in May.[19]

During the same year, Waterstones began supporting the Rainbow Trust Children's Charity, which assists children facing life-threatening conditions.[20]

After profits fell short of expectations and shares declined by one-fifth, HMV Group announced plans in January 2011 to close multiple Waterstones locations.[21][22] Among these closures were two Dublin outlets,[23] along with nine UK stores by February,[24] followed by further closures at locations including Luton, Dorking, Lancaster University, Harrods, Gateshead, and Norwich Arcade before the end of the year.[25]

Alexander Mamut & James Daunt: 2011–present

In May 2011, HMV Group divested Waterstones to A&NN Capital Fund Management, a firm overseen by Russian entrepreneur Alexander Mamut, for £53 million. This transaction was positively received by publishers, who viewed it as a step toward revitalizing Waterstones' brick-and-mortar footprint. Mamut appointed James Daunt, the founder of Daunt Books, as managing director. By October 2011, a refreshed board was established, featuring chairman Miranda Curtis. That September, the company discontinued its decade-long 3-for-2 book promotion, replacing it with customized offers tailored to individual branches.

January 2012 marked the return to Waterstones’ original logo design, notably removing the apostrophe to improve digital adaptability—a change that generated media discussion. The same month introduced The Russian Bookshop at the Piccadilly location, offering a collection of 5,000 Russian-language books and staffed exclusively by Russian-speaking employees.

Following the termination of its in-store e-reading service in late 2011, Waterstones surprised the industry in May 2012 by partnering with Amazon to retail Kindle devices through both physical shops and online platforms, aiming to enrich the Kindle user experience. This move was unexpected given previous speculation about potential collaborations with Barnes & Noble or developing proprietary devices. Simultaneously, Mamut pledged significant investment—"tens of millions of pounds"—to refurbish around 100 stores before year-end. Improvements included installing wi-fi, reorganizing store layouts, creating dedicated Kindle sections, and launching branded cafés named Café W. The first trial café opened in Sutton with plans to establish approximately 130 locations over three years. Additionally, a "click-and-collect" service was introduced.

The Kindle became available in stores by October 2012 alongside a brand relaunch positioning Waterstones as the "nation's leading bookshop," supported by an exclusive Waterstones Red Anthology. By the close of 2012, the store count had decreased to 288 due to commercial closures in places like Bromsgrove and Watford; affected staff were reassigned where feasible. Although reporting losses of £37.3 million for that year, Daunt indicated intentions for future growth based on performance metrics.

Starting in 2012, Waterstones shifted from centralized control toward empowering individual shops with decision-making authority and renewed emphasis on classic bookselling principles. This transition involved significant staff restructuring that reduced managerial positions and led to departures at both head office and branch levels. New collaborations included a professional development program with the University of Derby, a partnership with the Folio Society to diversify London stock offerings, and a charity alliance with BookTrust. By the end of 2013, losses had narrowed to £12.2 million; twelve Café W locations were operational and £29.5 million was invested in refurbishing stores.

In 2014, new outlets opened in Ringwood, Blackburn, and Southwold—the latter being the first without Waterstones branding—while stores in Eastleigh and St Neots closed. The head office experienced further turnover in brand communications and public relations roles; digital marketing efforts were revitalized through collaboration with agency Epiphany. Technological upgrades encompassed personalized online shopping algorithms, updated point-of-sale systems, and contactless payment implementation. A standout promotional event was a one-time customer "sleepover" at the Piccadilly store arranged with Airbnb after a customer was inadvertently locked inside. Despite a 5.9% decline in sales, operating losses shrank to £3.8 million.

Strategic adjustments persisted: by October 2015, following disappointing Kindle sales, Waterstones withdrew these devices from its inventory and repurposed retail space for books once again. After an unsuccessful bid to acquire Tesco’s BlinkBox Books in January 2015, Waterstones exited the e-book and e-reader market by selling its digital publishing business to Rakuten Kobo in May 2016.

In 2015, Waterstones collaborated with Oxfam on the "Buy Books for Syria" initiative, raising £1 million for humanitarian aid amid the Syrian civil war. Store changes included closures at Wimbledon and Birmingham New Street alongside openings such as The Rye Bookshop and a return to Welwyn Garden City. Operating income improved to £5.4 million while losses decreased from £18.8 million the previous year.

By 2016, Daunt acknowledged Amazon’s impact on Waterstones’ strategic direction but underscored physical bookselling’s enduring potential as an alternative to online retail dominance. The company concentrated on operational fundamentals including adjusting store hours and utilizing loyalty card data while refurbishing locations like Canterbury and enhancing e-commerce product rankings. Several outlets closed (Oxford Street Plaza, Edinburgh George Street, Reading Oracle), whereas new stores launched in Harpenden, Glasgow Fort, Tottenham Court Road, Wimbledon (new site), and Watford (new site), all showcasing refreshed branding praised within the industry. The partnership with Oxfam continued with further fundraising efforts for Syrian refugees.

Daunt voiced concerns about possible sales repercussions from the UK’s EU referendum but later reported strong sales momentum despite ongoing uncertainties.

For the fiscal year ending April 2016, Waterstones returned to profitability for the first time in seven years with earnings of £11.7 million; sales increased by 7% in Ireland where expansion plans remain active. By August 2016, the management board was streamlined from seven members down to three following Miranda Curtis’s exit. The BookTrust collaboration raised £300,000 over three years and extended into a fourth.

In April 2018 hedge fund Elliott Management Corporation acquired majority ownership from Mamut’s Lynwood Investments; this transaction concluded by June with Daunt continuing as CEO.

By 2021 Waterstones announced plans for partnerships with retailer Next to open concession outlets; this initiative came to fruition in April 2022 with a new store inside Next’s Martlesham location near Ipswich.

Under Elliott’s stewardship in 2022, Waterstones expanded further by acquiring Blackwell's—the largest independent bookstore chain in the UK—for an undisclosed amount, strengthening its market position even more.


Dillons (including Hatchards)

In 1995, the Thorn EMI group purchased Dillons, which was then the second-largest bookseller in the UK following Waterstones and formed part of EMI’s retail division alongside HMV. Prior to this, Dillons had acquired Hatchards. After the separation of Thorn and EMI in 1996, the retail segment was divested and established as HMV Media Group, a joint venture between EMI Group and private equity firm Advent International. This new entity encompassed HMV, Dillons, and Waterstones (which had been acquired from WHSmith for £300 million), creating a global entertainment retailer operating over 500 outlets. After an unsuccessful attempt to acquire WHSmith in 1997, Tim Waterstone joined the venture and was appointed chairman by May 1998 following the completion of the £801 million transaction. By that year, all Dillons outlets were rebranded as Waterstones.

Ottakar's

In September 2005, HMV Group initiated a bid for rival chain Ottakar's, prompting concerns from publishers and authors who hoped the Office of Fair Trading would refer the matter to the Competition Commission. In March 2006, the Competition Commission approved Waterstones’ acquisition of Ottakar's, determining it would not substantially reduce competition nor negatively impact pricing, selection, or service standards. The investigation also revealed that both companies employed a combination of centralized and local stock selection approaches.

Waterstones confirmed the successful purchase of Ottakar's on 31 May 2006. HMV CEO Alan Giles remarked that the merged entity would be better equipped to withstand competitive pressures in retail. Ottakar’s chairman Philip Dunne highlighted that intensified competition from supermarkets and online vendors had placed specialist booksellers without sufficient scale under strain.

Following the acquisition, HMV undertook a rebranding initiative converting all Ottakar's stores into Waterstones locations. This process began in July 2006 and concluded within four months, resulting in complete rebranding but also a workforce reduction of approximately 100 positions.

Books Etc

In August 2008, the now-defunct Borders chain sold eight Books Etc. stores to Waterstones for an undisclosed amount. This acquisition increased Waterstones’ retail footprint by , without any staff redundancies, significantly expanding its presence in London to nearly 50 shops, including areas previously unserved by the brand. Store locations encompassed Fleet Street, London Wall, Holborn, Wandsworth, Uxbridge, Finchley Road, and Canary Wharf. These outlets were rebranded as Waterstones and fully integrated by September 2008.

Foyles

Waterstones acquired the historic seven-store chain Foyles in September 2018 while preserving its established brand identity. James Daunt emphasized that this purchase was intended to "protect and champion the pleasures of real bookshops against Amazon’s siren call."

Blackwell's

In February 2022, Waterstones completed an acquisition of Blackwell's for an undisclosed sum.

Tax

Both founders Tim Waterstone and James Daunt have publicly condemned Amazon.com for its tax avoidance practices within the UK. Amazon has been scrutinized for channeling only a minor portion of its UK sales through its British subsidiary while routing much of its revenue offshore via Luxembourg to minimize tax liabilities. During 2012–13, Amazon paid £3.2 million in UK taxes on £4.2 billion sales yet received £2.5 million in government grants. Conversely, Waterstones paid £11.9 million in taxes despite reporting an operating loss of £25.4 million on £410.4 million turnover.

An analysis by Ethical Consumer pointed out that A&NN Capital Fund Management, Waterstones’ Bermuda-based parent company, is "likely established for tax avoidance purposes." In response, Waterstones affirmed compliance with all UK tax regulations as a registered UK entity. For the fiscal year 2013–14 under A&NN ownership, Waterstones reported sales of £398.5 million alongside an operating loss of £12.2 million.

Unbranded outlets

In July 2014, Waterstones introduced its inaugural unbranded store, Southwold Books, located in Southwold, Suffolk. The company deliberately omitted its branding to blend with the town’s independent retailers; however, this decision drew criticism locally due to concerns about rising rental costs and the potential impact on the traditional character of the high street.

This matter gained national attention again in 2016 when Waterstones launched two additional unbranded shops—The Rye Bookshop in Sussex and Harpenden Books in Hertfordshire—without prominently revealing their connection to Waterstones. Public responses were mixed regarding the transparency of this tactic; nevertheless, Waterstones never sought to hide its involvement. CEO James Daunt defended the strategy, highlighting the intention for these shops to maintain distinct independent identities and signaling plans for further expansion of unbranded locations.

Environmental considerations

Waterstones partnered with the British Safety Council to evaluate its environmental footprint beyond just carbon emissions. A 2008 assessment awarded the retailer a three-star rating out of five for its environmental performance.

Real living wage

As of March 2019, Waterstones had not adopted the "real living wage" endorsed by the Living Wage Foundation, despite advocacy from over 1,300 authors. Managing director James Daunt explained that the company was "not profitable enough" to implement this wage standard, noting that only a select number of large retailers such as Ikea, Majestic, and Lush currently pay the real living wage.

Awards

Waterstones supports a range of literary prizes, including the Waterstones Book of the Year, Waterstones Children's Book Prize, Waterstones Debut Fiction Prize, Waterstones Irish Book of the Year, the Pushkin House Russian Book Prize, and the Waterstones Children's Laureate. The company has also backed now-discontinued awards like the Waterstones 11 and the Guardian First Book Award. It has earned numerous accolades from both industry bodies and consumers.

Book of the Year

Established in 2012, this award features booksellers who compile a shortlist from any genre or publication date, with a judging panel selecting the ultimate winner.


Waterstones Book of the Year recipients
Year Author Title
2012 Russell Norman Polpo
2013 Template:Sortname Stoner
2014 Template:Sortname The Miniaturist
2015 Template:Sortname The Fox and the Star
2016 Template:Sortname The Essex Serpent
2017 Template:Sortname La Belle Sauvage: Book of Dust Volume One
2018 Template:Sortname Normal People
2019 Template:Sortname The Boy, the Mole, the Fox and the Horse
2020 Template:Sortname Hamnet
2021 Template:Sortname 'The Lyrics: 1956 to the Present'
2022 Katy Hessel 'The Story of Art Without Men'
2023 Katherine Rundell 'Impossible Creatures'


Children's Book Prize

Following the acquisition of Ottakar's, Waterstones maintained the tradition of the Ottakar's Children's Book Prize under its own name. Since 2005, the Waterstones Children's Book Prize has been dedicated to discovering emerging talent in children's literature by honoring authors who have published no more than two books previously, whether in adult or children's fiction.

Waterstones Children's Book Prize winners
Year Author Title
2005 Stuart Hill The Cry of the Icemark
2006 Julia Golding The Diamond of Drury Lane
2007 Tom Becker Darkside
2008 Sally Nicholls Ways to Live Forever
2009 Michelle Harrison 13 Treasures
2010 Katie Davies The Great Hamster Massacre
2011 Sita Brahmachari Artichoke Hearts
2012 Jonny Duddle The Pirates Next Door
2013 Annabel Pitcher Ketchup Clouds
2014 Katherine Rundell Rooftoppers
2015 Rob Biddulph Blown Away
2016 David Solomons My Brother is a Superhero
2017 Kiran Millwood Hargrave The Girl of Ink and Stars
2018 Angie Thomas The Hate U Give
2019 Onjali Q. Raúf Boy at the Back of the Class
2020 Nathan Bryon with Dapo Adeola (illus.) Look Up!
2021 Elle McNicoll A Kind of Spark
2022 Hannah Gold, illus. by Levi Pinfold The Last Bear
2023 Nadia Mikail The Cats We Meet Along the Way
2024 Pari Thomson, illus. Greenwild

In addition, Waterstones continues to support The Waterstones Children's Laureate, a position originally backed by Ottakar's. Since 2011, Waterstones has expanded its involvement with the Laureate through various initiatives both in-store and online. Distinguished holders during this period include Julia Donaldson, Malorie Blackman, and the current Laureate Chris Riddell.

Debut Fiction Prize

Introduced in 2022, the Waterstones Debut Fiction Prize is an annual accolade that celebrates outstanding debut novels published in the preceding year.

Waterstones Debut Fiction Prize winners
Year Author Title
2022 Tess Gunty 'The Rabbit Hutch'
2023 Alice Winn 'In Memoriam'
2024 Ferdia Lennon 'Glorious Exploits'

Irish Book of the Year

Year Author Title
2024 Michael Magee 'Closer to Home'

Waterstones 11

Launched in 2011, the Waterstones 11 highlighted debut literary fiction by new authors each year. From a pool of 100 submissions provided by publishers, eleven titles were selected annually and received promotional support across stores, online platforms, and media outlets. The first list featured notable works such as The Tiger's Wife by Téa Obreht, winner of the Orange Prize; Pigeon English by Stephen Kelman, a Man Booker Prize nominee; and Sarah Winman's When God Was a Rabbit, recipient of the Edinburgh International Book Festival First Book Award. The final edition was released in January 2013, with the initiative concluding in early 2014.

Locations

Waterstones manages a network of academic and high-street bookstores throughout Europe, including locations in:

  • Great Britain (operating under the Waterstones brand and others across England, Scotland, and Wales)
  • Ireland (Waterstones stores in Ballymena, Belfast, Coleraine, Cork, Craigavon, Derry, Drogheda, Enniskillen, Lisburn, Newry; Hodges Figgis situated in Dublin)
  • The Isle of Man
  • Jersey
  • The Netherlands
  • Belgium

A number of these outlets are housed within buildings of notable architectural and historical significance.


Flagship superstores

Waterstones' premier store on Piccadilly, London—previously the site of the Simpsons of Piccadilly department store—stands as the company’s largest location and is reputedly the biggest bookstore in Europe. The principal academic branch located on Gower Street, once Dillons' flagship, is marketed as the largest academic bookstore across Europe. Additionally, Waterstones operates several expansive multi-level 'superstores':[26]

  • Piccadilly, London – flagship venue spanning six floors with approximately 30 miles of shelving; company headquarters relocated here in 2012.
  • Gower Street, London – academic store covering five floors with 5 miles of shelving.
  • Sidney Street, Cambridge – four floors featuring two cafes.
  • Albion Street, Leeds – three floors.
  • College Lane, Liverpool – two floors containing Europe's largest open-plan book area.
  • Deansgate, Manchester – three floors holding over 100,000 titles.
  • Milsom Street, Bath – three floors with a collection exceeding 55,000 books.
  • La Scala Cinema on Sauchiehall Street, Glasgow – five floors situated in a converted cinema.
  • Bridlesmith Gate, Nottingham – five floors.


Architecturally and historically notable shops

  • Hodges Figgis in Dublin (recognized as Ireland’s oldest bookstore, established in 1768)
  • Kalverstraat in Amsterdam, designed by architect Hendrik Petrus Berlage
  • Wool Exchange in Bradford
  • High Street in Birmingham, formerly the Times Furniture Company premises
  • Dolphin & Anchor on West Street, Chichester
  • West End Princes Street in Edinburgh
  • Corn Exchange in Lincoln
  • Emerson Chambers in Newcastle upon Tyne
  • William Baker House on Cornmarket St, Oxford
  • Fishergate in Preston, previously Booths grocery and headquarters
  • Broad Street Independent Chapel building in Reading
  • The Tontines Building on Parliament Row, Stoke-on-Trent
  • The Carlton Cinema in Swansea


See also

External links

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