Waterstone’s lays off 200 as it shakes up book ordering

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The cuts, due to be announced to staff today, follow the setting up of a new centralised warehouse and distribution system at Burton upon Trent. That will see the chain's 303 stores place and receive single large orders across all titles instead of ordering books separately from individual publishers.

Sales fell by 3.1% in the six months to November although the previous year's figures included the final Harry Potter title. Stripping that out, sales fell 1.4%.

HMV will update on its Christmas trading on Wednesday, with many analysts gently positive. The music, DVD and video games chain is likely to have gained market share after Woolworths and Zavvi collapsed.

Independent London bookshop Foyles said sales rose 12% to £20.2 million in the year to last June with operating losses cut from £743,000 to £194,000.