PW: Gaia Morphs into E-Biz

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Gaia Morphs into E-Biz
Roxane Farmanfarmaian -- 2/28/00

After 13 years in business, the last several of which was marked by a hard struggles with changing market conditions, Gaia Bookstore in North Berkeley, Calif., is closing its doors on March 15, and "transitioning," as founder/owner Patrice Wynne told PW, "into an e-commerce business [www.gaiabookstore.com]." Later this year, or possibly early in 2001, Wynne hopes to reopen Gaia as part of a larger cultural center in downtown Berkeley on Allston Street.

"Gaia is simply not sustainable in its current location," said Wynne, adding that the rent is three times what it will be in the downtown venue. Ever since nearby 4th Street became a hot, new shopping area, businesses in the North Shattuck complex where Gaia is currently located have suffered, and several stores have recently closed. Internet competition further cut into sales, as did the mainstreaming of Gaia's core offerings: spirituality, alternative medicine and women's issues, which have all become common subjects in general bookstores. Wynne also said that the strain of trying to keep Gaia open has had "serious repercussions on my health and well-being. I urgently need time to regain my vitality so that our future is assured."

After announcing the store would close last winter, Gaia experienced an outpouring of community support -- including an offer of a matching grant of $200,000 from one loyal customer. The fund-raising effort that ensued enabled Wynne to collect $135,000 of the grant, and to keep the store open throughout 1999 while paying off most of its debts. But fall and winter sales took a dramatic decline (holiday sales were down 14%), prompting the decision to shut the store -- although the offices will remain open.

Gaia already had a Web site to market its many events. The company YVOD, a designer of e-commerce sites for small businesses, was one of the original team of volunteers who helped design the Web site and is now helping Gaia turn it into an e-commerce business. "I am full of hope for the future of Gaia's Internet presence to carry on our legacy," Wynne said, adding that the site "has the potential for linking with other like-minded organizations and to reach the community of Gaians around the world that the local bookstore cannot serve. In the era of corporate global monopolies, growing numbers of people are shopping online with enterprises like Gaia that are dedicated to core values of social responsibility, community service and diversity of ideas." Wynne said she is keeping all of Gaia's employees on board for now, although she is discussing a fulfillment option with another company and, should that pan out, will retain only two or three employees to run the business.

Wynne is seeking seed money from investors to assist in launching the Web site and the new cultural center. To help pay off remaining debts, all books are being discounted to 25%. Fixtures and furniture go on sale March 6. On March 10, a gala closing celebration will start off a month of fund-raising events. The closing event will feature a band and an auction of rare books, artifacts and mementos from Gaia's history.

On February 21, a volunteer advisory council of 20 local businesspeople met to look for potential investors, start the groundwork for an investors' plan and research successful cultural centers across the country.

"People really have been rallying since getting the news of our closing," said Wynne. "To stay in business, we needed $3,000 in sales a day. In January, we were having $700 days. Now, since the announcement, we are having $5,000-$10,000 days. It's ironic, but going out of business has been great for business!"
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