Christian retailing ascending to new heights

DSN Retailing Today, April 19, 2004 by Debbie Howell

NATIONWIDE DSN REPORT -- A spiritual revival appears to be taking hold in retail. After quietly operating on the fringe as a niche market for years, Christian bookstores are increasingly competing against mainstream retailers--largely due to the success of top-selling religious titles and the blockbuster film "The Passion of the Christ."

More and more, traditional retailers, such as Wal-Mart and Barnes & Noble, are grabbing share of this estimated $4.2 the billion market, threatening the specialists.

"This industry has seen significant growth. Unfortunately, a lot of it has been through the general market which has started to look at some of the more highly visible products and put minimal assortments in," said Kirk Persson, senior vp of merchandising for Family Christian Stores, the largest Christian product retailer.

Those hot products include books, music, jewelry and other accessories tied to Mel Gibson's controversial movie that graphically depicts the crucifixion of Jesus Christ. The "Passion" debuted in March and has already earned $330 million in box-office ticket sales, joining the list of the top-10 grossing U.S. films of all time.

Books, such as "The Purpose-Drive Life" by Rick Warren and "Glorious Appearing," the final installment in the "Left Behind" series by Tim LaHaye and Jerry Jenkins, are other hot sellers at mainstream and Christian retail stores. Such high-profile books and movies are enlarging the audience for Christian-themed products and driving expanded assortments at mainstream retailers.

"There is no doubt that it creates an interest," said Bill Simmons, president and ceo of Bible Factory Outlet regarding the "Passion" effect. "Suddenly people have an interest and that in drives reading people the Gospels into our market segment."

The timing of the movie--the month before Easter, the Christian holiday celebrating Christ's resurrection--was expected to drive sales even higher this month in religious-themed items, from cross necklaces to Bibles and related books.

Wal-Mart, which has carried Christian-themed books and music for years, has noted increased sales of such items, according to spokeswoman Danette Thompson. She said assortments may vary by store, depending on customer demand, but in general, the retailer offers up to 550 "inspirational" music titles and 1,200 "inspirational" books, including Bibles and best sellers found in Christian stores.

"In our jewelry department, we have seen an increase in sales of inspirational jewelry such as cross necklaces and Bible charms," Thompson said, adding that inspirational themes in music and books are more popular than in the past.

At Barnes & Noble, "Glorious Appearing" was the No. 1 fiction best seller on the retailer's Web site the first week of April. Both online and in stores, Barnes & Noble sold more than 48,000 copies the week it was released. This final book in the "Left Behind"

series--just as controversial as Gibson's movie--is a fictional interpretation of 'end times' as prophesied in the Bible.

At Amazon.com, "Glorious Appearing" was the No. 14 best seller on April 8. Not far behind at No. 18 was "The Purpose-Driven Life," a self-help guidebook for living a Christian-based life written by a Southern Baptist minister in 2002.

Due to high demand, these books and "Passion"-related merchandise are heavily promoted at Christian bookstores. But despite these contemporary interpretations of Christianity, the Bible remains the top seller at most specialty retailers.

Compared to the selective assortments at mainstream stores, many Christian retailers offer a deep selection of religious-themed books, music, gifts and related merchandise. In Bibles, for example, people can find more than 50 versions at Mardel, a 19-store chain that is a subsidiary of craft retailer Hobby Lobby.

Family Christian, the largest Christian retailer with 325 stores in 39 states, offers an extensive selection in books, music, video, software, children's toys, apparel, gifts and church supplies with predominantly explicit or implied Christian themes. In addition, at one of its stores in Frisco, Texas, a section is devoted to Spanish-language merchandise for its strong Hispanic customer base.

Merchandising executive Persson said Family Christian reported "modest" comparable-store sales growth this past year. He characterized the 70-year-old private company's growth as gradual. Its target customer is a female age 35 to 50 who Persson described as "kind of a soccer mom who has a church interest as well."

The second-largest chain, Lifeway Christian Stores, is a nonprofit arm of the Southern Baptist Convention. Lifeway operates more than 115 stores in 21 states, with a selection geared more toward Baptist beliefs. For example, books dealing with charismatic or evangelical Christianity would not be found at Lifeway.

Mardel, with stores in six states, operates an interesting hybrid format merging Christian merchandise with educational supplies. Products for teachers, including items for home schooling and Christian education niches, account for about one-third of a store's square footage and make up the third-largest sales category after books and music. Compared with a typical 8,000-square-foot Family Christian store, Mardel's footprint is much larger, averaging 24,000 square feet. Other features include soundproof booths where customers can test singing to soundtracks, as well as a listening bar at which they can preview any offered music CD.