Nearly 40% of Japan’s bookstores operate at a loss

In 2025, 39% of Japanese bookstores were operating at a loss, and the country’s book market had shrunk by approximately 20% over the past decade, according to a study by the Japanese research firm Teikoku Databank.

In 2015, the market was valued at approximately 1.4 trillion yen (380.4 billion UAH). It has since declined to between 1.04 trillion and 1.07 trillion yen (287 billion to 295 billion UAH). Teikoku Databank estimates that if the current rate of decline continues, the market could fall below 1 trillion yen (276 billion UAH) within a few years.

In 2025, only 14% of bookstores reported an increase in revenue, the lowest share since the start of the coronavirus pandemic. Revenue remained roughly unchanged from the previous year for 59% of companies, while it declined for 27%. The share of bookstores with stable revenue reached a 20-year high, while the share reporting revenue declines increased for the first time in five years. According to the researchers, these figures point to stagnant sales.

Profits declined at 31% of bookstores, while another 39% ended the fiscal year with losses. Overall, 70% of companies reported worsening financial results, the highest share since 2022, when it reached 72%.

Teikoku Databank attributes the market’s decline to several factors, including waning interest in reading — particularly among young people — the growth of online bookstores, the spread of e-books and unlimited reading services, and the expansion of online retail. As a result, readers are purchasing books less frequently at brick-and-mortar stores.

Bookstores, where manga sections are a key driver of customer traffic, also faced challenges. In 2025, sales were driven by consistently popular series such as “One Piece,” as well as manga that gained popularity following film or television adaptations, including “Frieren: Beyond Journey’s End” and “The Apothecary Diaries.”

Financial performance was also affected by high rents for large retail spaces, rising labor costs following increases in the minimum wage, and declining sales of hardcover and paperback books. The combined effect of these factors forced some bookstores to report losses.

Since 2016, 610 companies have exited Japan’s book retail market through bankruptcy, closure, or the cessation of operations. According to the Japan Publishing Organization for Information Infrastructure Development, 9,993 bookstores were operating nationwide at the end of fiscal 2025, marking the first time the total has fallen below 10,000.

Teikoku Databank notes that the situation is particularly difficult for small and medium-sized bookstores, which are less able to offset the costs of maintaining retail space and the decline in print book sales. At the same time, major bookstore chains are discussing reforms to the distribution system aimed at ensuring bookstores achieve a gross profit margin of 30% on book sales.

In addition, some small and medium-sized bookstores are reducing shelf space devoted to slow-selling books and magazines while expanding into businesses outside the traditional book trade. In particular, they are increasing sales of hobby-related goods, which can generate significantly higher revenue per square meter of retail space. According to Teikoku Databank, the growth of these business lines has helped keep the overall market above the 1 trillion yen mark (276 billion UAH).

Teikoku Databank prepared the study using data available as of June 2026. The company drew on its database of approximately 1.51 million businesses, about 2 million credit reports, and external sources.

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Main image: nippon.com