This Bookworm Turns Up in High Places

For some, Omaha, Nebraska, may seem far removed from the world's major financial markets, but others, such as the owners of the city's 21-year-old independent bookstore, The Bookworm, know quite the opposite is true.

Primarily due to its role as headquarters to the mammoth Berkshire Hathaway holding company and home to company CEO Warren Buffett and Vice-Chairman Charlie Munger, Omaha is a key business capital, particularly during the first weekend in May. That's when about 20,000 Berkshire Hathaway shareholders, representing about $108 billion in holdings, attend the company's annual meeting. The huge event has been termed "Woodstock for Capitalism."

Beth and Phil Black, founders and owners of The Bookworm, have a close relationship with Buffet and his company. For the past three years, on the day of the Berkshire Hathaway annual meeting, the 6,500-square-foot Bookworm operates the 3,000-square-foot Berky Books, the exclusive bookseller on the enormous exhibit floor of Omaha's Qwest Convention Center.

The Berky Books inventory is limited to a list of books pre-approved by Buffett, and most titles relate directly to Berkshire Hathaway or its many subsidiaries, including GEICO Insurance, See's Candies, Fruit of the Loom, and Clayton Homes, or to Buffett and his family members or Charlie Munger. Sales are brisk, according to the owners. "It's like our entire month of December in one day," Phil Black said.

The Bookworm's Berky Books is the only non-Berkshire Hathaway company in the exhibition hall. The bookstore offers a discount to all shareholders for the duration of the meeting, and Black noted that many attendees visit The Bookworm on Sunday to avoid the crowds at the booth.

The Blacks opened The Bookworm in 1986, but its current location in the Countryside Village center has been home to an independent bookstore continuously for more than 40 years. The Blacks relocated there in 1998 and are considered an anchor store among the 30-plus shops and services. The store has expanded and reconfigured its space several times, Phil Black said, and currently has 5,000-square-feet of retail space on the main level and a full basement of which approximately 1,500-square-feet is retail space. Adjacent to the store is a coffee shop that features both an internal doorway to the bookstore and a separate entrance.

According to Black, The Bookworm is sometimes referred to by its sales reps as a "carriage trade" store, which he interpreted to mean, in part, that they still sell a lot of hardcover books. The store is known for its many events -- imaginative activities for children and a wide variety of author visits.

Good organizational skills are part of The Bookworm's formula for success in attracting authors: the Black's have put together an impressive public relations kit that includes everything from a carefully documented list of all author appearances from 1999 through 2006, indicating close to 200 authors, along with each book's title, price, and number sold that year; demographic information about Omaha's community; media contacts; hotel information; and significant retail data. Interesting also is the notation that the store cooperates on scheduling author events with Lee Booksellers, with two stores in nearby Lincoln, Nebraska. Back-to-back events are encouraged.

The store's over 100 registered book clubs, representing 1,200 active members, are offered discounts, and the store hosts an annual book club open house and presentations by publishers' reps. The Bookworm offers a regular store-sponsored book club called "As the Worm Turns" and an informal "What are you reading?" group to discuss favorites.

Beth Black indicated that the Book Sense Picks lists are an increasingly popular way for customers to select books. "More and more people are looking over the Book Sense display and requesting the monthly fliers," she told BTW. "People want to get [the fliers] and use them. We post the Book Sense Bestsellers List and also report to the New York Times list, but we find that the Book Sense List has become more relevant to what our market wants." --Nomi Schwartz