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LINDA WERTHEIMER, HOST:

The holiday shopping season is here, and one group of retailers is doing better than you might expect. Despite intense competition from Amazon and big-box retailers, independent bookstores are enjoying a bit of a renaissance. From Seattle, NPR's Wendy Kaufman reports.

(SOUNDBITE OF CROWD CHATTER)

WENDY KAUFMAN, BYLINE: It's lunchtime at Third Place Books in Seattle, and the cafe here is bustling. The book aisles have their share of customers, too. Robert Sindelar, the managing partner at Third Place, says for a couple of decades independent booksellers have been fighting an uphill battle. But now, things are improving.

ROBERT SINDELAR: People who value browsing books, who value physical books, who value engaging with other people who read, seek places like this out. And so more and more people are kind of coming out of the woodwork and finding us.

KAUFMAN: The "buy local" movement has helped independent bookstores, and they got a boost after Borders declared bankruptcy and closed hundreds of retail outlets. Barnes and Noble has shuttered some stores as well. There are other factors aiding independents, too. Technology has made it easier for them to manage inventories and payrolls cost-effectively. And publishers are now offering indie booksellers like Sindelar more attractive terms than they did in the past.

SINDELAR: Some publishers are offering longer terms to pay; some publishers are offering slightly better discounts. So our cost of goods is a little less, returnability - all of that kind of stuff; and then cooperative money for advertising as well.

KAUFMAN: Does that make a difference?

SINDELAR: It does make a difference. Absolutely.

KAUFMAN: Industry consultant Mike Shatzkin believes publishers will continue to offer concessions because publishers want retail bookstores to survive. They don't want Amazon to be the only game in town.

MIKE SHATZKIN: I think that publishers understand that if the bookstore network shrinks to nothing, they are in danger of shrinking to nothing as well. That's an existential fear that makes them very, very amenable to doing what they can to keep bookstores alive.

KAUFMAN: The American Booksellers Association counts among its members nearly 2,000 independent bookstores - about 20 percent more than in 2009. And the number of books they're selling is up from a couple of years ago. But make no mistake: Running an independent bookstore isn't easy. The CEO of the Booksellers Association, Oren Teicher, points out that Amazon and some of the big-box stores sometimes sell books for less than what they cost the local bookstore. Indeed, Teicher suggests that Amazon sometimes sells books for less than it pays for them.

OREN TEICHER: What they're trying to do is develop a longtime relationship with consumers; that they'll sell them flat-screen televisions and diapers, and if they lose a few pennies on the sale of a book because they're helping build their customer base, that's their business model.

KAUFMAN: Independent booksellers can't begin to compete on price so they promote their expertise, the luxury of browsing, and their contributions to the community, including story times and other free events.

(SOUNDBITE OF PARENTS, KIDS CHANTING, CLAPPING)

KAUFMAN: Jessica Brown and her son were among those enjoying the entertainment at Seattle's Mockingbird Books.

JESSICA BROWN: This bookstore really was kind of a stepping stone for me to integrate myself into the local community; we had just moved here. I have met more friends than I can even tell you, just by coming here.

KAUFMAN: Brown says she could spend less for books online or at a giant retailer, but she chooses to buy books at an independent bookstore.

BROWN: I think it's more of the principle of supporting the community, and supporting the local booksellers that are really trying to make it these days in really hard times. And I think that if we're doing that, we're helping one another.

KAUFMAN: Independent booksellers can only hope that more and more readers feel the same way.

Wendy Kaufman, NPR News, Seattle.

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