Cut The Fat But Avoid The Bone

Book shops are having a time of it these days. After all, when you're trying to scratch together enough cash to cover the month's mortgage payment, the last thing you'll be doing is buying a book.

That means firms like Eason  have to find a way to make do with less.

At the same time, it can't lop off whole limbs and trumpet the success of the diet. A monetary liposuction requires care and precision if the patient is to survive.

Eason has announced that it is seeking to cut costs by E8 million per year. It's either cut the fat, or go under.

But how much is fat and how much is vital flesh?

Conor Whelan, managing director, is full speed ahead on opening three new stores in locations near the reading public that still has enough money to afford a few small luxuries. A business can't do business without a place in which to do business. Closing up shops, in Mr. Whelan's analysis, would be counter-productive.

Then there's the online end of the book industry. Eason will continue to go up agains the likes of Amazon through its own electronic shop, a strategy that requires investment up front with an eye to profits returned down the road.

In addition, they'll offer more e-books so take that, iPad and Kindle.

Eason will do all this with fewer people. People eat up money in the form of salaries and benefits. It's extra fat when a chunk of the business is carried on via the Internet, or as a download without the need of a clerk to ring up a sale.

Will it be a serious trim or will Eason nick an artery and bleed out cash until they're dry?

No one can really say until the cutting is done. But it wouldn't hurt to pray for an economic recovery.