With the demise of the bankrupt LPC Group, Client Distribution Services, LPC's former sales and warehousing partner, has jumped to the head of the class as a major distributor of graphic novels and book format comics to the general book trade.

Most comics periodicals are sold through comics specialty stores, which buy their books from publishers on a nonreturnable basis. Under former LPC president David Wilk, LPC recognized that book-length comics had great potential in the general book store trade. Indeed, LPC came along at just the right time. American comics have grown in variety and sophistication over the past 20 years, and the popularity of manga or Japanese comics also continues to grow at an impressive rate. Book-length comics offer meticulous draftsmanship, high production values, vivid adventure stories and even literary fiction and serious nonfiction, in addition to the traditionally dominant categories of humor and superhero fare. Now a younger generation of readers views graphic novels as just another book.

Concerned about the dwindling numbers of comics specialty stores and encouraged by the profitability of graphic novels and steadily growing bookstore sales from retail chains, comics publishers have recognized that the future of comics publishing may likely be found in general trade bookstores.

In the aftermath of LPC's bankruptcy, comics publishers, formerly considered on the fringe of book publishing, are being aggressively courted by CDS and by Diamond Book Distribution, a new trade book market distribution unit launched by Diamond Comics, the major distributor of periodical comics to the comics specialty market. Even Ingram is getting with the program, setting up a graphic novel standing-order program for libraries and a graphic novel supplement for bookstores.

CDS, which had already been working with many of the graphic novel publishers through its partnership with LPC, has set up a new division to serve these publishers. The division will be directed by Michael Murphy, formerly of LPC. Murphy, is a 2o-year book industry veteran, and served as publisher at William Morrow. Also joining Murphy at CDS is Robert Boyd, who previously oversaw LPC's graphic novel program.

In a major development, CDS has signed Marvel Comics and its lucrative graphic novel list, luring the publisher of Spiderman and the X-Men away from Diamond. CDS also signed a number of former LPC clients, such as manga publisher Tokyopop, SF and fantasy publisher CrossGen, French graphic novel publisher Humanoids and others.

Dark Horse Comics and Image Comics, both large indie comics publishers formerly distributed by LPC, have yet to sign with either firm. But, Murphy said, CDS is now a major comics distributor representing "about 80% of what's selling."

Murphy told PW he sees "explosive potential" in the sales of graphic novels in bookstores. "LPC reported $1.6 million in sales in 2000," said Murphy, after the company began distributing graphic novels. "We had $5 million in sales in 2001 and we had projected $10 million in 2002, principally from graphic novels," Murphy continued. "Graphic novel sell-through is over 90%," he added, and "returns are around 8%. The publishers at LPC were reporting sales growth of 100%, and this is with no promotional support and very few retail outlets. It reminds me of science fiction publishing in the early 1980s."

Libraries are responding to vigorous demand from teenagers. "Libraries get it," said Murphy. "The interest is intense. At ALA meetings, the graphic novel workshops are sold out." Retail chain bookstores also get it, said Murphy: "Virgin, B&N, Borders and Walden were early adopters."

Murphy said CDS needs to get graphic novels "in the market into more stores and dealers. We need to identify the different categories. Manga will dominate; but there's also sci-fi comics, alternative comics, serious nonfiction and a lot more."

"We need to educate the market about the category," Murphy said. "We need to get independent stores involved. We want ads and direct mailing and support—but first we need more stores."