For the past 10 years, the bookstore sector has been stagnant with minimal growth. Overshadowed by e-commerce giants and digital reading options like Apple Books, Amazon Kindle and Kindle Unlimited, bookstores had an identity crisis—with many questioning their relevance in today’s increasingly competitive marketplace. However, today, bookstores are doing more than just hanging on. They are thriving. 

Barnes & Noble, for example, opened 57 stores in 2024. That number is more bookstores opened in a single year for the retailer than it had in the whole decade from 2009 to 2019. The bookseller is also on track to open 60 more stores this year. Additionally, Books-A-Million, a premier book retailing chain, revealed plans to open 30 new stores this year. 

Aside from those giants, independent booksellers across the country—some who have been in the business for 30-40 years—are also expanding. These local retailers are drawing crowds not only for their selections, but for the sense of community that they bring. More than just a return of the bookstore, what we are seeing now is a reinvention that is more curated, more local, and far more experiential than any bookstores of the past.

Right Sized and Rebranded

Perhaps one of the bigger shifts in new stores has been the reduction in actual store size, as well as what is inside of the space. The massive 30,000-square-foot bookstores that once defined the bookstore chain model are being replaced with much more efficient spaces that are about half that size. These new 12,000-15,000-square-foot stores are easier to staff, more cost-effective to operate, and designed with more thoughtful attention to detail. 

In markets like West Houston, for example, a longtime Barnes & Noble location completely remodeled and transitioned from a large footprint into a vibrant, smaller-format store. The new location, which opened in January at Town & Country Village, feels busier, is better organized, and is much more in tune with its local customer base. The layout is also inviting, the merchandise curated, and the space feels more like a destination. This shift to right size also often involves moving stores closer to the communities they serve. Some bookstores are moving into walkable town centers and others are moving in mixed-use developments to better capitalize on foot traffic and co-tenancy with coffee shops and complimentary retail stores. 

Experience Matters

The word “experiential” is one that has been getting tossed around in retail for nearly a decade, but in the case of the bookstore, it is warranted. Bookstores today are more of an inviting experience that is less about the transactions and more about time well spent. 

Bookstores are becoming gathering places, and the successful spaces will be the ones where families can linger, book clubs can meet, midnight book release parties are back, and authors continue to hold readings and signings. Many of the independent stores thriving today even double as wine bars, cafés or co-working hubs. That kind of co-tenancy expands store offerings to drive a broader and more diverse audience during all day parts and capitalize on dwell time. 

This “experiential” element is also driving engagement among younger readers. As fueled by trends on TikTok (BookTok), there is a rise of social reading with Gen Z and Millennials. These younger readers like to have a physical book in hand and enjoy more than just the book’s content. They lean into the social aspect of reading with social gatherings at their local bookstore. BookTok has even promoted the aesthetics of book buying with the joy of building a bookshelf at home that feels personal to the reader, which has helped with book sales by capitalizing on special edition book releases, collectable pins, bookmarks and more.

Local Focus, Inventory

Another reason bookstores are succeeding are that many have localized their operations. In newer Barnes & Noble locations, for example, many more of the merchandising decisions are left to individual store managers than in the past. In other words, the person deciding what goes on the shelves is the same person who is interacting with its customers each day. The approach makes sense, as it gives the stores a distinct identity that is tied to the communities they serve. That said, that hasn’t always been the case. 

Independent bookstores are the ones who have excelled at this for a while, but what has changed is that the national retailers have taken note and have adapted accordingly. For example, Barnes & Noble store managers became in charge of merchandising as a strategy to localize and personalize the bookstore experience, starting around 2019. The new strategy aimed to empower store managers to tailor book selection and displays to local preferences, enhancing the overall brand experience. 

As retail practices evolved, the importance of visual merchandising, inventory management, and promotional techniques grew. Now bookstore managers play a more active role in incorporating these merchandising principles into their roles, including planning displays and implementing promotional strategies to increase sales. 

Retail’s Part in the Community 

When talking about the resurgence of the bookstore, what many overlook is just how important these stores are to the community. More than any other type of retail, bookstores play a major emotional role in a community when planned right. When a bookstore is threatened, the community rallies. The outcome is that landlords get creative and leases get reworked. 

Over 300 people in Chelsea, Michigan, for example, recently helped a local bookstore move just a block down the road, with residents lining the streets to pass over 9,000 books to assist the local operator with the relocation. 

That type of community support and involvement does not just happen because of numbers on a spreadsheet. Instead, it happens because of the value that these stores have, which extends far beyond the register. A bookstore might be only 14,000 square feet in size now, but its impact and its meaning to the community is much bigger. 

If there is one takeaway from the resurgence of bookstores, it is that retail isn’t dying but evolving in ways that prioritize human connection and thoughtful design. When those two priorities come together, people respond. As we move further into 2025, we will continue to see that bookstores are back, but more than that, they are back better than ever because they have embraced change. The successful bookstores of tomorrow are right-sizing their footprints, localizing their offerings, and leaning into the localized in-person experience.

Jason Baker is Principal at Houston-based Baker Katz, a full-service commercial real estate brokerage firm. To connect with Jason directly, email jbaker@bakerkatz.com.