Ottakar's

Ottakar's was a United Kingdom bookselling chain founded in 1987 by James Heneage. The business was created around the idea that many British small and medium-sized towns were underserved by large specialist booksellers, particularly by Waterstone's, and could support well-run local bookshops with a broad range of titles. Its name was inspired by King Ottokar's Sceptre, an adventure in the Tintin series, and the brand used that association in selected store designs, including Tintin-themed wall paintings and child-oriented installations. The Bromley shop in London became notable for a large rocket based on imagery from the Tintin books, designed as a play feature for children. The chain initially opened stores in locations including Loughborough, Brighton, Banbury, Salisbury and Trowbridge. Its expansion strategy combined new-store openings with acquisitions of established independent booksellers. Ottakar's acquired several smaller West Country bookshops, eight branches of James Thin Booksellers in 2002, and 24 branches of Hammicks Bookshops in April 2003. By the middle of 2006, the chain operated shops in 141 locations across the United Kingdom. Ottakar's attempted to respond to the rise of online bookselling by launching an internet ordering service. The service generated losses and was withdrawn in 2001. The company hoped to relaunch its online operation by 2006, but that plan was overtaken by the acquisition process. The chain also competed in a retail environment increasingly shaped by supermarkets, online retailers and larger specialist booksellers. Its management argued that the business needed greater scale to compete effectively, while retaining the local character of its shops. A distinctive feature of the company was the degree of autonomy given to individual branches in choosing and presenting stock. This helped stores reflect local demand and contributed to customer perceptions that Ottakar's was an independent bookseller rather than a centrally controlled chain. A 2004 customer survey found that many shoppers believed their local Ottakar's branch was independent, which the company treated as evidence that its operating model had preserved a strong community orientation. The business also developed a reputation for enthusiastic and committed staff, although outside observers sometimes characterized its internal culture as unusually intense. Ottakar's received industry recognition, winning the Reader's Digest Bookselling Company of the Year award at the 2003 British Book Awards. In 2005 it introduced the Ottakar's Children's Book Prize, intended to identify emerging children's writers and limited to authors who had published no more than three books. After the acquisition, the award was renamed the Waterstone's Children's Book Prize. The company became the subject of a contested takeover during 2005 and 2006. Its founders, including James Heneage and Philip Dunne, backed by Phoenix Equity Partners, initially supported a management buyout proposal. A higher offer from HMV Group led them to change their recommendation in favor of the HMV bid. The proposed transaction was examined by the Office of Fair Trading and then referred to the Competition Commission. In March 2006, the Competition Commission provisionally cleared the acquisition, concluding that it was unlikely to substantially lessen competition or materially harm book prices, title ranges or service quality. Waterstone's subsequently agreed to acquire Ottakar's for £62.8 million, with the transaction announced on 31 May 2006. Following completion, Ottakar's stores were converted to the Waterstone's format. By Christmas 2006, the entire chain had been rebranded, ending Ottakar's existence as a retail banner. The Ottakar's trademark was retained by Waterstone's after the later separation of Waterstone's from HMV. The brand therefore remains historically significant as an example of a British regional bookseller that combined local merchandising and community positioning with rapid consolidation, but it no longer operates as an independent chain.

James Heneage founded Ottakar's in 1987 after identifying an opportunity in British towns that did not have a Waterstone's branch. The name referred to King Ottokar's Sceptre from The Adventures of Tintin, and the company occasionally incorporated Tintin-inspired imagery into its shops. Early locations included Loughborough, Brighton, Banbury, Salisbury and Trowbridge. The stores sought to combine the range expected from a specialist chain with a more personal and locally responsive retail experience. Ottakar's expanded through both organic growth and acquisitions. It bought smaller West Country booksellers, acquired eight James Thin Booksellers branches in 2002 and purchased 24 Hammicks Bookshops branches in April 2003. By mid-2006, it had reached 141 United Kingdom locations. The company gave branches substantial discretion over stock selection and presentation, allowing local managers to respond to community demand. This approach helped create the impression that individual stores were independent businesses, a perception supported by customer research conducted in 2004. The chain was also known for high employee engagement and a strong internal culture. It won the Reader's Digest Bookselling Company of the Year award at the 2003 British Book Awards. In an effort to address the emerging threat from internet retailers, Ottakar's launched an online ordering service, but withdrew it after the operation made a loss in 2001. A planned internet relaunch was not completed before the company was acquired. The company became publicly listed on the London Stock Exchange in 1998. During 2005, its founders James Heneage and Philip Dunne, together with private equity firm Phoenix Equity Partners, backed a management buyout proposal that had initially been accepted by independent directors. HMV Group subsequently made a higher offer, and the owners changed their recommendation in favor of that transaction. The Office of Fair Trading referred the proposed takeover to the Competition Commission in December 2005. The Competition Commission provisionally cleared the acquisition in March 2006, finding no likely substantial lessening of competition and no expected material impact on book prices, range or service quality. Waterstone's agreed to acquire Ottakar's for £62.8 million, with the deal announced on 31 May 2006. The chain's stores were progressively converted to Waterstone's outlets, and all had been rebranded by Christmas of that year. Ottakar's therefore ceased to exist as a retail chain, although Waterstone's retained the trademark. The company's children's prize was renamed the Waterstone's Children's Book Prize after the rebranding. Ottakar's history illustrates the pressures faced by specialist booksellers as supermarket and online competition increased, as well as the difficulty of preserving a distinctive local brand while pursuing national scale.

• 2006

  Competition review clears the acquisition

  [1]Ottakar'sen.wikipedia.org

  The Competition Commission provisionally finds that the HMV-backed acquisition is unlikely to substantially lessen competition.

• 2006

  Ottakar's is acquired and rebranded

  [1]Ottakar'sen.wikipedia.org

  Waterstone's agrees to acquire the chain for £62.8 million, and all stores are rebranded as Waterstone's by Christmas.

• 2005

  Ottakar's Children's Book Prize begins

  [1]Ottakar'sen.wikipedia.org

  Ottakar's launches an award for emerging children's authors who have published no more than three books.

• 2005

  Takeover proposals emerge

  [1]Ottakar'sen.wikipedia.org

  A management buyout proposal is followed by a higher offer from HMV Group, prompting the owners to support the HMV transaction.

• 2003

  Hammicks acquisition and industry award

  [1]Ottakar'sen.wikipedia.org

  The company acquires 24 Hammicks Bookshops branches and wins the Reader's Digest Bookselling Company of the Year award at the British Book Awards.

• 2002

  Acquisition of James Thin branches

  [1]Ottakar'sen.wikipedia.org

  Ottakar's acquires eight branches of James Thin Booksellers.

• 2001

  Online ordering service is withdrawn

  [1]Ottakar'sen.wikipedia.org

  The chain ends its loss-making online ordering operation while continuing to consider a later internet relaunch.

• 1998

  The company lists on the London Stock Exchange

  [1]Ottakar'sen.wikipedia.org

  Ottakar's becomes a publicly listed company as its store network and acquisition program expand.

• 1987

  Ottakar's is founded

  [1]Ottakar'sen.wikipedia.org

  James Heneage establishes the bookselling chain, initially targeting British towns without a Waterstone's branch.

A community-oriented British bookseller combining the breadth and scale of a growing chain with locally selected stock, branch autonomy and distinctive child-friendly store environments.

• Bookselling · 1987

  General books

  Ottakar's stores sold a broad selection of fiction, non-fiction and specialist titles. The chain combined centrally managed purchasing with local input, enabling individual shops to tailor stock to the interests of their surrounding communities.

• Bookselling

  Children's books

  Children's literature was an important part of the store experience, reinforced by child-friendly shop features and the company's Tintin-related visual themes. The brand also used its children's book prize to promote emerging writers.

• E-commerce

  Online ordering service

  Ottakar's established an internet ordering service to compete with online booksellers. The service made losses and was withdrawn in 2001; a proposed relaunch had not occurred before the HMV acquisition.

• 2005Ottakar's Children's Book Prize

  United Kingdom

  The annual prize sought to uncover new talent in children's writing and was open to authors with no more than three published books.

  Outcome. After the acquisition and store rebranding, the award continued under the name Waterstone's Children's Book Prize.

  Source
• Tintin-inspired store design

  United Kingdom

  Selected branches used imagery inspired by The Adventures of Tintin, including painted walls and a large rocket play feature at the Bromley store.

  Outcome. The design helped distinguish the chain and made some shops especially attractive to children and families.

  Source

• 2006

  Accept HMV Group's acquisition offerM&A

  Background

  The owners initially backed a management buyout, but HMV Group submitted a higher offer amid increasing competition from supermarkets and online retailers.

  Action taken

  Ottakar's owners switched their recommendation in favor of Waterstone's agreed cash offer of £62.8 million.

  Aftermath

  The acquisition was completed and the stores were converted to Waterstone's outlets by Christmas 2006.

  Agreed cash acquisition price. £62.8 million (2006)

  Source

• 2003

  Acquire 24 Hammicks Bookshops branchesM&A

  Background

  Ottakar's continued consolidating independent and regional bookselling operations.

  Action taken

  The company acquired 24 branches of Hammicks Bookshops.

  Aftermath

  The acquisition strengthened the chain's national footprint before the later HMV takeover.

  Source

• 2002

  Acquire eight James Thin Booksellers branchesM&A

  Background

  The chain pursued acquisition-led expansion to increase its geographic coverage and store scale.

  Action taken

  Ottakar's acquired eight branches of James Thin Booksellers.

  Aftermath

  The transaction formed part of the expansion that eventually brought the chain to 141 United Kingdom locations.

  Source

• 2001

  Withdraw the loss-making online ordering serviceStrategy

  Background

  Ottakar's sought to compete with emerging online booksellers but its internet ordering service generated losses.

  Action taken

  The company withdrew the service while leaving open the possibility of a future relaunch.

  Aftermath

  A planned internet relaunch was not completed before the company was acquired by HMV Group.

  Source

1. 1Ottakar'sen.wikipedia.org
2. 2Office of Fair Tradinggov.uk