Retailers taking Christian path to competition

He referred to the past several years as a sort of "retail Darwinism." He was forced to cut full-time workers in favor of part-time employees and he trained his staff across departments to improve versatility.

"You could either use it as a chance to be bitter or be better," Wallington said. "I think stores that are seeing some success now pretty much all chose to make themselves better because of it."

Wallington said there are tiers of retailers in the industry: mom-and-pop businesses that are almost a hobby, a middle tier where owners make a decent living with eight to 15 employees and larger stores with 20 to 40 employees.

He believes the smaller stores probably will survive because they do not necessarily have to make a profit, while the larger stores are probably safe because they have the ability to strategically make decisions and try alternatives.

But mid-tier stores doing about $1 million to $1.5 million a year in sales need to grow to survive, Wallington said.

"The ones in the middle are the ones I worry about," he said. "That's not the sweet spot. ... And unfortunately that's where a lot of our stores are. I think they need to get bigger if they're going to survive."

Wallington believes the key to long-term success is keeping the customer's attention, as well as a variety of products and unique service where his employees listen to personal problems of customers and, at times, pray with them.

"I can't imagine them going into a Wal-Mart and sharing that with the clerk," he said. "But they come into a Christian bookstore because they feel like it's a safe environment."

Kris Urdahl, who manages a 500-square-foot store at Grace Lutheran Church in Huntington Beach, Calif., said several customers have told her they can purchase some books cheaper at a warehouse club store, and she agrees.

But then she ticks off reasons why they should buy from her — the store is nonprofit, she offers more expertise and a wider variety of products.

"I think it's great that they're distributing those books. They'll get in the top sellers, maybe the three to five top best-sellers in the book market, and it's just reaching more people," she said. "I think there's plenty of room for growth and there's room for all of us."

Evelyn Martin of Arrowhead Christian Center in Johnston City, N.Y., said big-box retailers haven't been a big concern.

"People are trying out new venues like online and Amazon.com," she said. "We've had customers try those things and they end up coming back to us because of the customer service."

She believes the industry will continue to grow.

"I think that people are very aware of spiritual things right now. And a lot of people are searching," she said.

MORE FROM U.S. BUSINESS

U.S. business Section Front

Court orders Microsoft to stop selling Word CBS, Disney may join Apple TV venture Obama says ‘the worst is behind us’ Teachers face mass layoffs as stimulus ends States’ jobless funds going ‘absolutely broke’ Russia Web gang took millions from Citi: report NYT: Temps hired over full-time workers Banks say they’re lending, if borrowers qualify Galleon Group founder pleads not guilty Rebound leads AP’s top business stories of ’09 U.S. business Section Front   Add U.S. business headlines to your news reader: