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

MNblockhead

A Title Much Cooler Than Anything on the Old Site
This I would pay for. I would happily pay 20-50 for a seat at a one-off, 6-hour adventure run by an excellent DM with all the bells and whistles: terrain, minis, a nice space with a large table and nice chairs.
 

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delericho

Legend
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.

Yeah, I could see that working. It would need to be viable as a restaurant, with the gaming side of it simply a bonus, but it could work.

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?

Perhaps. The problem is that the store/DM would need to guarantee a suitably excellent DM, and almost any DM good enough to charge can almost certainly make more money (probably a lot more money) doing other things.

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...

Two things:

1) Unless you're very unusual, you don't have a home theatre with a screen to rival the cinema and a sound system to match.

2) The cinemas are ailing, too. So looking to them for the future of the FLGS probably isn't the best move.

Here's another twist: what if paying the $4 cover charge gave you access to all the store's books while you were there?

That's not really a store; it's a library.
 

That's not really a store; it's a library.

Ah, but libraries can't get away with charging $4 a visit because everyone associates "library" with "public library" = "free". By calling it a "store" you don't have to deal with that. :) It's kind of like how Lowe's will let you rent equipment as well as buy it.

Perhaps. The problem is that the store/DM would need to guarantee a suitably excellent DM, and almost any DM good enough to charge can almost certainly make more money (probably a lot more money) doing other things.

This is a really good point, unfortunately. I think you're just persuaded me that the hypothetical business model is unworkable.
 

TheSwartz

Explorer
This is not really a problem only with local gaming stores; it really applies to most all "local" "small" business. At least, any that sell goods which can also be purchased online easily.

Local gaming stores will be a very niche business. I don't see them surviving (let alone thriving) unless each individual store offers something very unique to the local area that it serves. So, the answer to this question is the hardest of them all; the formula for success with "depend" heavily on the actual store in question, relative to the local market it is trying to cater to. You have to create a business plan that offers something that the Walmarts and Amazon.com's of the world can't quite give your customer. AND... most importantly, you have to have enough local customers who want that special thing you do, locally.

Gone are the days of simply "throwing up a shingle" when it comes to local small businesses.
 
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Capn Charlie

Explorer
What we need is protectionism for FLGS. Companies needs to offer special pricing deals that let your little shops meet and beat amazon prices, at least for core product. I routinely see the 5e core books on amazon, shipping free, for about what my store pays for them wholesale.
 

DM Howard

Explorer
What we need is protectionism for FLGS. Companies needs to offer special pricing deals that let your little shops meet and beat amazon prices, at least for core product. I routinely see the 5e core books on amazon, shipping free, for about what my store pays for them wholesale.

I doubt that will ever happen in any serious way. Amazon has too much clout with both their sales numbers, market penetration, and Amazon Prime. It doesn't really behoove gaming companies to help out the FLGS, at least not RPG companies. Perhaps wargame companies should care due to the pick-up game approach to those games, but RPGs are primarily played out of store as a rule. The closest I could see companies getting would be to add a code for a free PDF with any copies they sell to an FLGS. I believe there is some sort of initiative out there like that already, but there aren't any huge RPG companies in on it.
 

happyhermit

Adventurer
As for FLGS in general, the two main ones I visit regularly (in a smallish city) are doing excellent AFAIK. My usual one is 20+ yrs old now, and they have expanded 4 times, ending up buying the excellent building they are in now. They have a great playspace, helpful staff, etc. The last time I was there happened to be on the weekend and the retail space was packed with people buying.

The other store is not as large but they are more a mishmash of comics, manga, LARP stuff, board games etc. The playspace is not amazing only because it isn't separate from the retail, and there isn't a ton of space but it is clean and bright. They are very busy whenever I have been there. Retail game space is a lot more limited than the first store.

There are also a lot of little stores in the malls trying to be little FLGS/FLCS, they seem somewhat busy.

Gamecafe's seem to be going through the roof, more and more all the time and all seem fairly busy. I am sure the market will become oversaturated, and most small businesses don't survive very many years anyways but they are doing great now. As much as I see people saying they wouldn't pay for space, people are paying for space. Lots of these are also selling products retail, at MSRP typically, and people are paying it.

Now, that's just the FLGS themselves, the truth is RPGs seem to be making up a smaller portion of them than ever, let alone the fact that smaller stores and cafe's don't seem to be even offering the product. Companies like Asmodee are making changes that will benefit local stores because their research says that it's worth it to them, so that might tilt things even further away from rpgs, will see I guess.
 

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