What Will Become of the FLGS?

Role-playing games have always had a curious space in distribution channels ranging from hobby stores to bookstores to toy stores. As geek culture and tabletop gaming increases in popularity, distribution channels are morphing in surprising ways to meet gamer demand.

Role-playing games have always had a curious space in distribution channels ranging from hobby stores to bookstores to toy stores. As geek culture and tabletop gaming increases in popularity, distribution channels are morphing in surprising ways to meet gamer demand.


[h=3]D&D as Toy?[/h]When Dungeons & Dragons was first sold, it was everywhere, including toy stores. Shannon Appelcline speaks to the game's popularity in Designers & Dragons -- The 80s:

...it’d been on an upward trend since TSR published those first thousand boxes of Dungeons & Dragons in January 1974. Whatever the reason, the result was really big. You could find roleplaying games in mainstream stores like Waldenbooks and Toys “R” Us.


One of the reasons D&D made it into toy stores was thanks to the release of the Basic D&D set. Appelcline clarifies in Designers & Dragons -- The 70s:

...J. Eric Holmes — a doctor and professor of neurology, and also the author of a Pellucidar pastiche called Mahars of Pellucidar (1976) — approached TSR with an offer to write an introductory version of D&D. The original game targeted the college-age crowd, while Holmes wanted to expand the game’s demographics to younger players — and possibly to get it into the mass market as well.


It worked. For a time, book stores and toy stores were major distributors for D&D, helped in no small part by the launch of Basic Dungeons & Dragons. The collapse of those chains cut off RPGs from wider audiences.
[h=3]Your FLGS to the Rescue[/h]Friendly Local Game Stores (FLGS) picked up the slack and were always a viable source for tabletop role-playing games. They were the original distributors of ancillary markets like tabletop wargames and miniature games, so it was a natural progression for FLGS to carry RPGs too. But then the D20 glut happened. SDLear provides a general outline of the bust cycle:

  • Phase 1: Store overbuys on fad product (usually D20)
  • Phase 2: Store owner finds that they have product they can't move.
  • Phase 3: Store owner cuts out "high risk" product only re-ording backstock occasionally (at our local store its D&D and nWOD almost exclusively).
  • Phase 4: Store owner does not realize that his stock is offered for 10% off at Barnes & Nobles.
  • Phase 5: Gamers turn to http://Amazon.com for selection, find that they can get a better price online.
  • Phase 6: Local gaming community crashes without vibrant local retailer.
  • Phase 7: FLGS goes out of business.
The glut hit game stores hard.

There was little review, be it professional or fan based, and purchasing agents for stores had a hard time sorting the good from the bad. This was neither sustainable nor terribly good for the core engine. By 2005, the market was collapsing from too many low quality supplements...The wide variety of low quality supplements resulted in many stores having surpluses of lousy supplements; for many, this was a major hit to their profits, and often, had the effect of damaging all but special orders for 3rd party supplements.


The final nail in the RPG surge took place in the build up to the Great Recession, effectively pushing game stores that were doing poorly out of business. Wizards of the Coast's experiment in distribution with its chain of Game Keeper stores ended in 2004 when all 85 stores closed. It hurt other distribution channels too: KB Toys closed in 2009; Waldenbooks stopped operating in 2011. But there were still alternative channels to purchase tabletop games.
[h=3]Bookstores Take Over[/h]Bookstores took a hit from the recession too. Barnes & Noble was one of the last bookstore chains still operating. How did it survive? By selling things other than books, including toys and board games. This tactic led to Barnes & Noble holding Casual Game Gatherings in March:

Barnes & Noble will host weekly Casual Game Gatherings, offering demos and space for play, in March, distributor Publisher Services Inc. announced. The events will be held on five Thursday evenings at 57 stores, about 9% of the chain’s 640 stores. Demos will be conducted by Barnes & Noble store employees.


The events were enough of a success that Barnes & Noble is considering expanding them. Tabletop role-playing games may well be on the horizon. What's behind B&N's sudden interest in gaming? Sales, of course:

Barnes & Noble continued its transition to geek central with continued growth in its Toys & Games and Gift businesses in the results from its third fiscal quarter, reported last week. Toys & Games was up 12.5% and Gifts was up 13.8%, CEO Ronald Boire said the conference call. Vinyl and adult coloring books were the only other categories in which Barnes & Noble reported growth.


Books-a-Million has also jumped into the geeky fray, dedicating entire sections to themes that encompass all forms of gaming. Geek & Sundry teamed up with Books-a-Million for International Tabletop Day:

They are holding events at many of their stores throughout the nation. They will have free play, plus giveaways, discounts, and the coveted ITTD premium and promo kit items available on-site. So go visit them to score these exclusive items! After International TableTop Day, BAM and Geek & Sundry will continue the partnership to display a whole bunch of recommended games all summer long! Many of which have been featured on TableTop.


Bookstore aren't the only chain distributing tabletop games however.
[h=3]What About FLVGS?[/h]There's another kind of store that is expanding to include all things geeky, the Friendly Local Video Game Store (FLVGS). These stores began distributing primarily video games but have since branched out to all sorts of geeky gadgets, including collectibles, wearables, and toys. This makes it appealing as a possible distribution channel for tabletop games:

There are many reasons people come to a FLGS, such as meeting new people, play games they can’t play at home, learn about new products through demos, friendly competition, etc. Many also go to their FLGS to see if they like a game, and then buy it on Amazon at a discounted price. They will now have a new alternative for Cryptozoic games: Game Stop.


Some consolidation has happened:

What do you do when your primary physical sales channel is drying up? You sell something that your audience loves, preferably online, and if that doesn’t work you buy someone that does. To that end, GameStop, the beleaguered game sales company, has bought ThinkGeek, a beleaguered geek toy company, for $140 million at $20 a share.


ThinkGeek's brand is particularly friendly to tabletop gamers and even began experimenting with brick-and-mortar stores of its own. GameStop's growth in the game distribution market has turned it into a viable channel for tabletop games, so much so that Cryptozoic Entertainment decided to sell its games through GameStop. Cryptozoic is known for a wide variety of licensed card and board games, including Adventure Time, Batman, DC Comics, and several television and movie franchise brands -- the most recent being the successfully Kickstarted Ghostbusters board game. ICv2 explained:

Cryptozoic has made a number of distribution changes in recent months, expanding its merch relationship with Diamond and its game relationship with PSI, ending its exclusive hobby distribution relationship with Diamond/Alliance for games, and ending direct consumer sales of trading cards on its website (see "Cryptozoic Expands Merch Relationship with Diamond"). Adding a 6,600-store chain brings an important new channel to Cryptozoic’s distribution options.

[h=3]FLGS Live![/h]There may still be hope for your friendly local game store. A BoardGameGeek poll of 130 voters indicated that 75% still thought there was a role for them in the marketplace. The top three most important attributes for game stores to be successful, beyond being merely the least expensive (and therefore losing out to online competition like Amazon), were knowledgeable staff (54%), playing tables (34%) and gaming sessions/tournaments (34%). Game stores fared well in 2015:

Over 80% of game retailers are experiencing increased sales in 2015, according to the results of a new survey conducted by ICv2 in the run-up to the holiday season. Asked about the 2015 trend for their business, over 30% said sales were up over 10%, and over 50% said sales were up from 1-10%. Only a little over 10% of game retailers reported flat sales, with single digit percentages down 1-10% and none down over 10%.


In some ways the collapse of the other distribution channels has made FLGS more important than ever. With tabletop board games surging in popularity, larger chains like Target have begun carrying board games too -- and this occasionally causes some fiction when a popular board game like Pandemic gets released in Target before it reaches hobby stores. Scott Thorne, PhD, owner of Castle Perilous Games & Books in Carbondale, Illinois and instructor in marketing at Southeast Missouri State University, expressed his concern about the early release in his Roll for Initiative column:

BTW, I would be remiss if I failed to mention last week's release of Pandemic 2nd Edition by either Z-Man Games or their mass market distributor to the Target chain a week before the official release date, (according to Alliance Distribution's Website), of February 6th. Given that the game has been out of stock since the holidays, finding it on Target's shelves a week before the hobby gets it is annoying to say the least. I would certainly like to see some repercussions, but given that Target will sell more Pandemic in a week than I will in a year, I sincerely doubt it. However, the game store channel is the primary outlet for the rest of Z-Man's catalog and causing them to sell a hot product at more of a disadvantage than usual is not good for the long term channel relationship.


With tabletop games surging in popularity, distribution woes will likely be an ongoing problem as publishers navigate between the hobby stores dedicated to gaming as a brand and mass market stores that offer access to a broader customer base.
[h=3]The Future[/h]As geek culture thrives, game stores will need to evolve with them, adjusting to multiple gaming formats that help them survive the boom and bust cycle. Geeks and their children have a lot of buying power, but in the highly competitive world of online stores, distributors are still figuring out the best way to reach them. The friendly local game store of tomorrow may well offer a mix of electronic and tabletop games.

Mike "Talien" Tresca is a freelance game columnist, author, and communicator. You can follow him at Patreon.
 

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Michael Tresca

Michael Tresca

RPG stores have almost never been a thing. The high points were back in the days of d20 shovelware and before that in the days of the 2e and oWoD glut. It's just too low margin, especially because basically the only RPG company producing serious dead tree volume at the moment is Paizo, and they have direct subscribers.

Which means we're onto general game stores. GW appears to be shooting itself in the foot on full auto right now, which is a promising sign for the gaming stores that sell RPGs (GW going away in favour of the general hobby store). But a gaming store is all about community building and making people want to come back and browse.
 

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Windjammer

Adventurer
It's a well written OP, though like other readers I think there's a lack of clear distinction throughout on gaming stores in general - especially those (now) catering to boardgames, with a small RPG section (1-2 shelves) - and RPG specialist stores.

It's clear that boardgame sales volume and stores has exploded, with strong industry leaders like Fantasy Flight Games multiplying their sales volume from 10 years significantly. Such companies are also in a position to exert market control, reign back deflated 'pricing battles' of online retailers, and directly re-invigorate brick and mortar chains. For a recent and very drastic example see here:

https://boardgamegeek.com/blogpost/49015/starting-2016-asmodee-will-operate-asmodee-north-a

Traditionally, the RPG market was controlled by its industry titan. However, as that titan is nowhere near its historic market size (or even R&D staff), chances are small that a company at the size of WotC could do much, by way of attractive deals with gaming stores (though a shadow of that remains - a 'shadow' in comparison to the early to mid 2000s).

Finally, I note that the most successful RPG company around owes part of its considerable success not just to a good product but an amazingly well run online store, that it owns and operates itself. That's the type of market control that could dictate measures such as linked to above, but aren't in Paizo's interest. So there. Those who can, don't want to, and those who perhaps would like to, lack the means to re-invigorate brick and mortal RPG sales.
 

MNblockhead

A Title Much Cooler Than Anything on the Old Site
3D printing, while it doesn't take much in materials, takes an _awful_ lot of time. That's why - at least for the short term - it's worthwhile doing at home, but not at a store. It would take a few days running non-stop to print out your average-sized dungeon, so not a moneymaker for a store.

Yes. I'm hoping the technology get to where it would be more feasible. The problem is that as it becomes more feasible for the game store, it also becomes cheaper for the consumer. You don't need a huge, fast 3D printer to print dungeon tiles and minis. That said, if the cost was low enough I would much rather pay to have someone else print them so I don't have to deal with learning the equipment, buying materials, maintaining it, and having a 3D printer running for hours of time in the house/garage.

As it is, I'm probably buying a 3D printer this summer. The 3D-printing services just are not cost effective.
 

DM Howard

Explorer
I used to regularly buy my RPG products from my FLGS, but I always got the vibe, short of outright saying it, that they would never want us to take up valuable table space which could be used for miniatures games etc. Well, if I don't feel welcome to use their space, then I don't see much of a reason to buy my products at near full MSRP from them. I think the FLGS is still very relevant for the wargaming and TCG communities, but I feel like it is becoming increasingly irrelevant for the RPG community.
 

epithet

Explorer
I agree with the problems you mention but I can't see myself or my players paying a cover charge to go sit at someone else's table.

...

I wouldn't pay to use someone else's table, but I would pay for associated services and refreshments. Beer and nachos, for example. If there were a cover charge, I would consider that part of the overall tab, like any other bar or club.
 

genegold

First Post
What about charging gamers too run a professional game? The GM gets paid, the Store gets paid, all items for the game get purchased thru the hosting store. Players get dice/minis/terrain/posters/big screen tvs/gaming table and chairs. People might pay?
 

There might be some scope for an FLGS that is actually a gamer-friendly coffee house - Starbucks with RPGs. But even there it's a diminishing model - as everything else in the high street (or Mall) withers and dies, the foot traffic taking people past the Gamer Cafe will also inevitably drop off, and then that dies too.

Interesting that you mention this. I've recently seen a chain of movie theatres reinventing themselves as "movies with [expensive] dinners served during the movie" and there's also a friendly local gaming store which is likewise a pricey restaurant for gamers who are meeting with their friends. Without access to their financials it's hard to know how successful they are, but guesstimating just based on how frequently money is changing hands, it looks to me like their revenue is probably pretty healthy.

Seems like a smart model to me. Americans being Americans, hoping that people will come back and browse seems like a worse bet than hoping that people will stay to eat.
 

While I agree with you in principle, @3catcircus, the difficulty lies in the business owner's dilemma --- do I stock things that are likely to sell, or take a risk on something that isn't likely to sell immediately, but may win me a "loyal" customer by catering to their unique tastes?

Your description of your game store sounds very much like the one closest to me (maybe 3-4 miles up the road). And I'm grateful at least that they carry Savage Worlds stuff. But I have to say that I think the super-niche-within-a-niche, extra-long-tail products are what internet retailing is strongest at promoting, not brick-and-mortar. All those little things we "didn't know we needed until we saw it" are what DriveThruRPG, Kickstarter, Amazon Marketplace, eBay, and home-grown digital storefronts are for. Yes, I absolutely love it when I wander in to my FLGS and see some little thing on the shelf that I suddenly recognize as being the perfect product for this "thing I've had on my mind for four or five months," but if I'm a game store owner really trying to run a profitable enterprise, I see myself as carrying less and less that kind of product.

The biggest problem to an FLGS is sales volume. RPGs, though we see them as being a "big deal," don't generate enough revenue throughput. The overall volume of RPG product sales WORLDWIDE is so small that to any major corporation it wouldn't even register as a line item. Wizards of the Coast couldn't even get D&D to hit Hasbro's $50 million annual revenue goal to be considered a "core brand." Paizo's not sharing their revenue numbers with any of us, but based on company size, they're probably in the neighborhood of a $6-$10 million annual revenue enterprise. How much in sales does Fantasy Flight generate in a year, and of that, how much of it can directly be attributed to its RPG lines (WHFRP, Dark Heresy, Star Wars) versus board games and card games? (I'd be willing to bet that Star Wars Imperial Assault generates 2-3 times as much revenue BY ITSELF as Fantasy Flight's entire RPG arm.)

Once you get past those three, it's a litany of other publishers of varying size, and we have no idea how well they're doing. How much in sales does Pinnacle Entertainment Games, makers of Savage Worlds, generate in a year? Green Ronin? Kobold Press? Goodman Games? Troll Lord? Kenzer? Steve Jackson Games?

AngryDM recently pointed out something that I think is quite telling: D&D isn't a game. It's a toolkit for making games. The actual act of game creation lies on the DM's shoulders. Angry was talking about the DM's responsibility for a good product but I think it's relevant to sales too. Think of the FLGS less as a video game store selling games and more like Lowe's or Home Improvement, selling tools to DMs. Or think of them like a specialty Maker's Shop catering to people who like making things with 3D printers and are looking for new designs to print out.

And that's why the market is so small.
 

I agree with the problems you mention but I can't see myself or my players paying a cover charge to go sit at someone else's table.

And I can't see myself paying money to go and sit at someone else's movie screen when I've got a perfectly good TV at home. And yet somehow, every once in a while I do, just because it's nice to get out of the house/hang out with friends/have a change of scene/let someone else do the cooking.

So I can imagine this working. Here's another twist: what if paying the $4 cover charge gave you access to all the store's books while you were there? For all those kids out there who don't buy their own PHBs, that could be a significant value-add. And if at some point they wise up and realize that they could just buy their own PHBs and play at someone's house, that's still a win for the hobby as a whole. And they might continue coming to the in-store event anyway, if it's enough fun.

I think the store needs to do something to ensure that they're not completely reliant on a volunteer DM to provide the value-adds, and I can see two possible avenues: provide access to new games/reference materials, or provide guaranteed access to DMs. Personally I hate the thought of playing with a professional, paid DM who has to pander to the lowest common denominator... but it would not shock me if there were some stores that could successfully make that part of their business model. In a world where movies are $11 a ticket, the idea of six people plopping down $11 each every week for four hours of entertainment in a friendly, clean game house/restaurant (plus more $$$ on snacks)... that idea would not shock me. Although on consideration, a stronger business model might be to sell gaming memberships which give you the right to X number of sessions for $Y per month. That's how my fencing club operates anyway (where X = unlimited).
 

DoveSinger

First Post
Thank you for your post, it kind of answers a question I have been asking myself for a very long time. Every time my husband and I move to a new area we always looked for someone whom was selling role play systems. And we had a difficult time finding them. They seemed to becoming fewer and fewer in our local areas. And we began looking on line. You are right they will need to become resilient in finding ways to attract gamer's to their stores. My husband wants to start a cyber cafe` with gamer tables in a second room, computers in the main room a section for material for sale and a Deli/ cafe` So that the customers can get food and drink. we haven't yet because we need to find an area that it would work in and need to write up a proposal to secure a loan. Your post has given me a great deal to think about. Again thank you for the information.
 

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