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Virtual Insanity: Square Bookstores Struggle to Compete With Online Vendors

Levy says the company's low overhead--it has just 25 employees, one office and one warehouse--allows it to offer drastic discounts.

According to Levy, Harvard students responded well to the site this year, and so may soon see their school on that pull-down list.

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But Square bookstores are fighting the on-line onslaught.

"We are currently developing a way to have a textbook presence on-line, shooting for this fall," Powell says of the Coop.

And most of the Square's smaller stores have been reaping the rewards of on-line sales for several years.

Davis estimates that 70 percent of Schoenhof's sales are sent through the mail, and on-line orders make up a large chunk of this.

Davis says the store imports books from about 50 countries, and carries language-learning materials in 300 languages.

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