Grolier Incorporated: A History of Encyclopedia Publishing
The story of Grolier Incorporated is a chronicle of the rise and evolution of the reference book industry. From its origins as a boutique society for rare literature to becoming a dominant force in the American encyclopedia market, Grolier shaped how generations of students and adults accessed organized knowledge before the digital age.
The Foundations of the Grolier Society
The company began as the Grolier Society, founded by Walter M. Jackson (1863–1923). Jackson's entry into the world of publishing was marked by his partnership with Horace Everett Hooper, with whom he worked on the 10th and 11th editions of the Encyclopædia Britannica. However, a legal dispute over the control of the Britannica led to a split between the two men in 1908–1909.
The Grolier Society initially focused on publishing high-quality editions of rare literature and classics. The organization took its name from the Grolier Club, a group founded in 1884 to promote the art of bookmaking, which was itself named after Jean Grolier de Servières, a famous French bibliophile (a lover and collector of books).
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Expansion into Educational Works
In 1910, Jackson expanded the company's scope by purchasing the rights to publish The Children's Encyclopædia (a British publication) under the title The Book of Knowledge. This move signaled a shift toward the educational market that would define the company's future.
The Era of Growth and Market Dominance
In 1936, Fred P. Murphy, a senior sales executive who had joined the firm in 1912, acquired the company. Under Murphy's leadership, Grolier transformed into one of the world's largest publishers of general encyclopedias. The company went public in 1954 and was listed on the New York Stock Exchange by 1965.
Grolier's success was driven by a diverse portfolio of titles and a unique corporate structure. Murphy managed several subsidiaries—including the Americana Corporation, The Grolier Society, Inc., R.H. Hinckley Company, Spencer International Press, Inc., and The Richards Company, Inc.—by encouraging a productive rivalry among them, offering executives broad authority and profit-sharing incentives.
By 1968, Grolier held a 30 percent market share in the United States, with annual sales exceeding $181 million. This growth was bolstered by the hiring of John G. Ryan in 1959, whose leadership at The Richards Company pushed the American Peoples Encyclopedia to become a top seller.
Financial Turbulence and Corporate Transitions
The 1970s brought significant challenges. Following Fred Murphy's retirement, the company merged its specialized sales subsidiaries into a single, less profitable sales force. Financial instability was further exacerbated by ill-advised investments in non-publishing sectors, such as mobile homes. By 1976, Grolier reported a loss of $77 million on $247 million in sales, nearly facing bankruptcy before restructuring its debts.
The company returned to profitability in the 1980s, largely due to the expansion of its mail-order business. In 1986, Grolier ventured into multimedia by partnering with Hal Roach Studios and Robert Halmi, Inc. (later Qintex Entertainment) to create Grolier Home Video, aimed at adapting book properties for the screen.
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Acquisitions and Global Ownership
In 1988, the French media company Hachette purchased Grolier for $450 million. Hachette, which owned its own French-language encyclopedia, was later absorbed by the Lagardère Group. Grolier continued to grow its portfolio, acquiring Children's Press in 1995 and shifting operations to New York City and Danbury, Connecticut.
By 1999, Grolier reported revenues of $450 million, including $4.5 million from Internet sales and a $100 million international business spanning Asia, Canada, and the UK.
The Scholastic Era and Digital Transition
In June 2000, Scholastic purchased Grolier for $400 million. Scholastic, which focuses on the K-8 (Kindergarten through 8th grade) market, attempted to reposition the Encyclopedia Americana as a primary resource for schools. However, this transition was marked by annual staff reductions between 2000 and 2007 to control costs, which depleted the workforce responsible for maintaining the vast encyclopedia databases.
Today, Grolier Incorporated continues to exist, and its legacy lives on through the Scholastic website known as Scholastic GO.
Key Facts
- Founder: Walter M. Jackson, who established the Grolier Society.
- Market Peak: Held a 30% US market share in encyclopedia publishing by 1968.
- Major Titles: Published Encyclopedia Americana, The Book of Knowledge, and American Peoples Encyclopedia.
- Ownership History: Owned by Hachette (1988) and later Scholastic (2000).
- Digital Evolution: Transitioned from print to CD-ROM (1985) and eventually to the Scholastic GO web platform.
| Year/Period | Publication or Event | Significance |
|---|---|---|
| 1910 | The Book of Knowledge | Entry into children's encyclopedia market |
| 1941 | Grolier Encyclopedia | Based on Harmsworth's and Doubleday's works |
| 1962 | American Peoples Encyclopedia | Major driver of sales via The Richards Company |
| 1980 | Academic American Encyclopedia | Expansion of academic reference offerings |
| 1985 | The New Grolier Electronic Encyclopedia | First move into CD-ROM format |
| 2000 | Acquisition by Scholastic | Shift toward K-8 school market focus |
Frequently Asked Questions
Who founded the Grolier Society?
The Grolier Society was founded by Walter M. Jackson, who had previously worked on the 10th and 11th editions of the Encyclopædia Britannica.
What was the cause of Grolier's financial decline in the 1970s?
The decline was caused by the merger of productive sales subsidiaries into a less efficient unitary force and unsuccessful investments in non-publishing ventures, such as mobile homes.
How much did Scholastic pay to acquire Grolier?
Scholastic purchased Grolier for $400 million in June 2000.
What happened to the Grolier brand after the Scholastic acquisition?
The company remains Grolier Incorporated, and the brand name is now integrated into the Scholastic website known as Scholastic GO.
Which French company owned Grolier before Scholastic?
Grolier was owned by Hachette, which purchased the company for $450 million in 1988 before being absorbed by the Lagardère Group.