Several years ago, as book sales were crashing and everyone was claiming the future was Kindle and tablet reading, the guys behind the success of JB Hi-Fi Terry Smart, Richard Uechtritz and former JB Hi-Fi Chairman Greg Richards, spotted an opportunity in Queensland that saw them buying up the Queensland Book Distribution Company. Some observers at the time said they were mad.

Today it’s clear they not only read the market right, they also knew how to take QBD to market via high traffic retail stores in shopping malls, a bit like JB Hi-Fi.

The business, which is today owned by a syndicate of investors including current CEO Nick Croydon, JB Hi-Fi boss Terry Smart and founding partner of Next Capital Patrick Elliott, will launch its 17th Victorian store in Frankston’s Bayside Shopping Centre on April 1, bringing its total store count to 86.

Recently, arch online rival Booktopia was hit with a $6 million fine for making false statements about customers’ rights regarding its refund policy.

Nick Croydon, the CEO at QBD, claims that “[During COVID], business books did well as people start to think about starting businesses, as well as self-help and meditation, New Age and all that sort of thing – navel-gazing was really strong,” the head of Australia’s largest bricks-and-mortar bookseller says.

Terry Smart shareholder QBD Books & CEO JB Hi-Fi

Croydon says QBD is on track to turn over just under $150 million this financial year, and that their online business is 10% of revenues.

At this stage the book Company plans to open three to four new stores a year, or expand existing ones, and the company is looking for new stores in malls and strips that deliver foot traffic.

In an interview with the AFR, Croydon said, “It is very hard to make a profit selling books online.” Instead, QBD is focused on growing its physical stores, where young parents, retirees and adults under 30 make up three of the retailer’s biggest demographics.

“Online has its place, but it’s very hard to browse; it’s impossible to get advice,” he said.

“I think that’s what sets us apart. It’s not a sale. It’s a kind of friendly discussion on what you’re looking for and what you might enjoy.”

A major competitor to QBD is Big W, who has seen their book sales surge with the Company allocating more floor space for books, which are often in prime positions in their stores.

Both Uechtritz and former JB Hi-Fi Chairman Greg Richards sold out of the business in 2021.

Back then, Boutique firm Greenstone Partners pitch to buyers, claimed QBD Books expects $130.1 million in revenue and $11.7 million EBITDA in the 2021 financial year.

Greenstone told interested parties QBD Books would have an estimated 7.3 per cent market share in the year to June 30, and forecast 15 per cent same-store sales growth.