Digitalization and e-commerce have increased competition for independent bookstores. In a market characterized by low prices, high accessibility, and algorithm-based recommendations, physical independent bookstores need alternative strategies to remain competitive. Relationship marketing has therefore become increasingly important, where customer relationships, personal service, and social experiences are used to create value.

The purpose of this study is to examine how Swedish independent bookstores use marketing strategies to compete with online bookstores. The study is based on theories of relationship marketing and Porter’s competitive strategies.

The study was conducted using a qualitative research design with an abductive and comparative approach. Empirical data was collected through semi-structured interviews with owners of nine independent bookstores in Sweden. The empirical data was analyzed through thematic and comparative analysis.

The results show that the bookstores mainly compete through values that are difficult to replicate digitally. Personal customer interactions, book recommendations, events, book clubs, and author talks are used to create customer loyalty and engagement. The physical bookstore also functions as a social and cultural meeting place. Social media is primarily used to strengthen customer relationships and promote the business. The findings also show that the bookstores have different views on digitalization and online commerce.

The study shows that the competitive advantage of independent bookstores is largely based on the experience surrounding books and reading. Through relationship-building activities and local connections, the bookstores create customer value that extends beyond price and accessibility.