By Jenny Ratzel

W&L bookstore diversifies it merchandise. Photo by Stephanie Wiechmann

College bookstores that stock only books are a thing of the past.

The Washington and Lee University bookstore has expanded beyond textbooks and into the realm of clothing, designer accessories and cosmetics. In the small Lexington market, this means the bookstore is crossing into territory once dominated by local merchants and bringing a new source of competition.

And this is bringing competition from a tax-exempt institution, something some merchants consider unfair.

“A bookstore is meant for books, not jewelry and cosmetics,” said Alvin Carter, owner of downtown men’s apparel store Alvin-Dennis.

With the bookstore constantly expanding its inventory, merchants are rapidly losing their grip on the student dollar. For example, Alvin-Dennis stocks a popular brand of ties, belts and tote bags, Vineyard Vines. The bookstore also stocks the brand. Carter said he’s “not crazy” about the bookstore’s expanding merchandise, and that local merchants used to avoid selling the same brands that other stores sold. “Things changed when the Beckers [new W&L bookstore managers] took over,” said Carter.

In a similar situation, Pappagallo was previously the only local retailer of Vera Bradley, a popular handbag and luggage line. The bookstore began to carry the brand this fall. The owner of Pappagallo had no comment on the overlap.

Unlike many other local merchants, Anna-Lisa Fitzgerald, owner and manager of Books and Co., welcomes the challenges and benefits of having the university bookstore. “No one establishment can carry the needs of the entire town,” said Fitzgerald. Fitzgerald focuses 40 percent of her inventory on children’s books, a genre the bookstore does not cater to.

Fitzgerald also sees the bookstore as an opportunity for students’ dollars to remain within Lexington. “It’s important that sales stay within the community,” said Fitzgerald.

The University Store, previously located in a cramped corner of the university, made its home in the Elrod Commons when it opened two years ago. Since then the Commons, home to the dining hall and a popular place for students to socialize, has been a crossroads of university traffic. The location positions it for a high volume of visitors.
An added convenience is that students are able to “swipe home” purchases at the bookstore that total more than $10. The charge is billed with tuition. Many students use this option to pay for more than just textbooks.

This option is so popular among the university community that merchants in downtown Lexington, such as Alvin-Dennis and Pumpkinseeds, have started offering students charge accounts that bill their parents. The disadvantage they face is their inability to bill directly to students’ tuition accounts as the bookstore does.

Maureen Becker, the co-manager of the bookstore, plans to drop the number of books the W&L bookstore stocks - currently 18,000, mostly textbooks - because the books aren’t a good source of profit. She plans to offset this loss of business by increasing the amount of specialty items she carries.

While the bookstore stands to churn huge profits from their expansions, Becker emphasizes that the store does help the university. The bookstore is a non-profit business, privately owned and run by university employees. Unlike many college campuses that contract with retailers such as Barnes & Noble to run their bookstores, the university benefits from the bookstore’s success.

“The average college bookstore gives around 7 to 8 percent of gross revenue back to the [parent] institution,” said Becker. “Anything over 10 percent is considered outstanding.” Last year, the W&L bookstore gave 15.7
percent back to the university, according to Becker.

The new lines the bookstore is carrying have been successful, with some items already selling out and having to be re-ordered, according to Becker. Meanwhile, the tension with Lexington merchants is likely to grow as the bookstore’s variety grows. Becker is in negotiations with Clinique cosmetics. She said she would also like to add jewelry in the future.

It's not just a bookstore anymore: View Slideshow

Produced by Washington and Lee journalism students.

Lead supervisor:      Prof. Claudette Artwick

Reporting supervisor: Prof. Doug Cumming

Editing supervisor:  Prof. Pamela Luecke

Technical supervisor:  Michael Todd