Why can't bookstores flourish in middle to low income neighborhoods?

Question

Where's the Barnes And Noble, Books-A-Million, and Hawley-Cooke in the "ghetto", the trailer parks, and around the "green light district"? I have always wondered this and would love to hear some educated answers. I have looked through several well known economists works and have had no success.
Thanks.

Obviously the majority of you haven't a clue about economics. This has nothing to do with stupidity. It is just a simple observation.

Answer 1

I would say it's likely that book stores fair better in areas where the average affluency is higher. Since higher affluency tends to mean better education, which in turn tends to be socio-economic status, it would reason that book stores and the like would do better in areas of high economic status.

I'm not trying to generaize or stereotype, I'm just trying to think this through. If you consider Maslow's Pyramid of Needs, things like food, shelter, clothing and the like would be the first types of retail establishments, since those cover basic needs, as afluency and socio-economic levels rise in a neighborhood, so would the esteem levels of its populace and things like book stores, museums, professional theatres (not movie theatrer) and other establishments that cater to the higher levels of Maslow's pyramid would spring up.

Looking in the U.S. actually isn't a good example because the literacy and affluence in this country is actually higher than in many other countries.

If you visit countries like Mexico, or countries in Africa or Southeast Asia, this phenomenon is much more visible.

Of course, in many of these countries, electronic conveniences like radios and televisions are not practical, so stores that sell books are actually more prevelent. But in the U.S., where televisions are cheap and easy to come by, it takes a more developed socio-economic dynamic for things like book stores to flourish.

Answer 2

The answer seems pretty straightforward to me... I'm not sure why you'd have to refer to a "well known" economist. Major box stores are going to locate closest to their market and the people in the "ghetto" just aren't it. It's not because they are stupid... it's all about income elasticity. Books are probably a luxury good to people of low income, but they are probably a normal good to people of higher income. Where would you put your store?

There's probably more too it than that now that I think about it though. Have you read Riccardo or any of the other urban economists? Uban areas form because of the positive externalities associated with firms locating near eachother... it cuts down on transportation costs, marketing costs, etc. "ghettos" and trailer parks are residential areas by nature so it wouldn't make sense for a major retailer to locate in one because they wouldn't be able to take advantage of the clustering effect.

Answer 3

Book stores need a large relatively rich customer base to make a profit. Most book stores are located in downtown areas, large shopping malls or near colleges. Where I use to live in a relatively rich suburb there was no book store within 5 miles. Only stores selling necessities like food stores, drug stores, hardware stores etc are evenly distributed in neighborhoods. I assume that if someone who lives in a "ghetto", the trailer parks, and around the "green light district" wants to buy a book they will go down town or to a large shopping center just like I do.

Answer 4

A library is cheaper and there are other things that must be paid for first like food, electricity, coats.... You don't need the well known economists works to figure it out, pause and think and the answer is pretty clear.

Answer 5

The same reason there are no major supermarkets in the "ghetto"...
Safety of employees
As for a book store it's purely economic....most of those stores are in affluent areas because they tend to purchase more because they read more.

Answer 6

People with a low income would probably rather buy food (or other necessities) for their family and go to the library to get books.

Answer 7

since when? we have plenty of bookstores, including a barnes and noble and a borders right in the heart of the city (definitely low middle class area).. and they're doin great

Answer 8

I live in a ghetto and we have several bookshops here, all doing good business. They are not chain stores but are mom n pop shops and call themselves `second-hand books`

Answer 9

Cause biusnesses like that need lots of money income just to stay in business and in small town there just isn't enough money comming in to keep the Buisiness open.

Answer 10

i think it has a lot to do with the fact that they associate low income areas with people who are not very "intellectual" therefore they would not expect these people to read books.