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Mr [Dominic Myers] will have his work cut out. Booksellers such as Borders have gone to the wall under the onslaught of cheap product from Amazon and supermarkets. The arrival of electronic books adds a further plot twist. Waterstone's has a foot in this camp through its tie-up with Sony Reader - it sold 80,000 downloads over the festive period - but digital media bring in new rivals. One winner from the digitisation of music was the unmusical Apple. But Mr Myers' new role is not a Harry Potter-esque poisoned chalice.

Once upon a time, as in all the best stories, order prevailed. Bookselling was a sedate business, with standardised pricing discouraging the merest whiff of competition. Enter the stranger, in the form of internet retailing, sounding the final death knell of the net book agreement , which controlled prices. Rabid discounts, big faceless chains flogging books like baked beans and upholstered C-rate celebrities promoting their Z-list stories became the order of the day.

HMV-owned Waterstone's, the chain that subsumed specialist bookseller Ottakar's , was cast as one of the villains . Yet it has itself fallen on hard times, with like-for-like sales down 9 per cent in the 10 weeks to January 2. Yesterday managing director Gerry Johnson was replaced by Dominic Myers, former HMV group development director. He comes in with a mandate to do for Waterstone's what his ultimate boss, HMV chief Simon Fox, did for the entertainment retailer: add market share in the face of escalating competition.

Mr Myers will have his work cut out. Booksellers such as Borders have gone to the wall under the onslaught of cheap product from Amazon and supermarkets. The arrival of electronic books adds a further plot twist. Waterstone's has a foot in this camp through its tie-up with Sony Reader - it sold 80,000 downloads over the festive period - but digital media bring in new rivals. One winner from the digitisation of music was the unmusical Apple. But Mr Myers' new role is not a Harry Potter-esque poisoned chalice. PwC research suggests there is a place for specialist bookstores: browsing isn't dead; nor are independent booksellers such as the fabulous Lutyens & Rubinstein , which select books themselves and don't discount. Waterstone's has a strong brand and, with about 25 per cent of the market, just needs to convince the literati to return. This is not yet the end of the story.

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