–December 2024–
Dear Valued Readers and Partners,
As we reflect on the past year, it’s with a mix of gratitude and angst that I share an annual review of the children’s book publishing landscape. The past year has presented numerous challenges, including a surge in book banning efforts and a slowdown in sales from both wholesalers and retailers.
Market Challenges:
2024 proved to be a demanding year for children’s book publishing, with book banning efforts, economic uncertainty, and shifting reading habits impacting Albert Whitman and the industry.
– Book Banning: The rise in book banning initiatives across the country has created a climate of disinformation, misinformation, and fear, targeting stories about people of color, members of the LGBTQ+ community, and those from diverse religious and cultural backgrounds. Consequently, more children have less access to important stories in their schools and libraries.
– Industry Sales Slowdown: We have witnessed a decline in sales from both wholesalers and retailers across all of AW’s categories. To further illustrate the challenges we face, here are some relevant data points:
– Circana BookScan (formerly IRI and The NPD Group): Sales of children’s books in the US declined by 3% in 2023 through September, with middle grade books declining by 10%. While the full year-end report isn’t out yet, early indications from NPD BookScan suggest the downward trend in print book sales continued in 2024, with children’s books experiencing a slight decline compared to 2023. This is consistent with overall market trends.
– Publishers Weekly: Book sales continued to slow down in the first half of 2023, with a 2.7% decline in unit sales compared to the previous year.
– The Bookseller: US print book sales fell by 2.6% in 2023 from 2022, following a strong final pre-Christmas week.
– Simba Information: Their preliminary estimates for the children’s book market in 2024 suggest a modest growth of around 1.5%, driven primarily by the young adult segment and digital sales. However, this growth is significantly lower than previous years, indicating a continuing slowdown in the market.
Our Response:
Given these market conditions, we have taken several proactive measures to ensure the long-term health and sustainability of our company. These include:
– Staff Reductions: We have carefully evaluated our staffing needs and made necessary adjustments (nearly a 70% reduction in staff over 18 months).
– Office Downsizing: We have transitioned to a more compact office space, reducing our overhead costs and optimizing our workspace (a 50% reduction in space).
– Marketing Budget Optimization: We have reallocated our marketing resources to focus on targeted campaigns that maximize our reach and impact (a 90% reduction in spend).
– Leadership Salary Adjustments: We have implemented a salary freeze for our leadership team with no changes in the last 24 months.
– Curated Publishing List: We have reviewed our upcoming titles and made strategic decisions to trim our list size and cancel agreements that enabled contributors to find other homes for their titles (an 80% reduction in list size).
– Acquisitions Pause: We have temporarily suspended our acquisitions process to focus on fulfilling our existing commitments and adapting to the evolving market conditions. This pause took effect at the beginning of Q4 2023 and excluded books that were under agreement.
Our Commitment:
Despite these challenges, we remain committed to providing high-quality children’s books that inspire, educate, and entertain young readers. We are confident that our proactive measures will enable us to weather this period of instability and emerge stronger than ever. Outside of essential operating expenses, every dollar that comes into Albert Whitman & Company flows directly back out to support the talented individuals who make our books possible – our authors, illustrators, printers, and other vital partners.
We extend our sincere appreciation to our authors, illustrators, agents, retailers, librarians, and educators for their unwavering support and trust. Your continued partnership is essential to our success and the continued growth of children’s literature. Together, we will navigate these challenges and continue to foster a love of reading and learning among kids.
Thank you for your understanding and support.
Sincerely,
Tom
Tom B MacDonald
Publisher
Albert Whitman & Company
