US neighborhood bookstores thrive in digital age

US independent bookstores are discovering how to flourish despite the growth of electronic books with some even looking to form an alliance with a formidable competitor -- Google.

The New Atlantic Independent Booksellers Association, which represents bookstores in the northeast, said its membership has remained steady at about 300 stores over the last decade. Closures have been offset by new stores opening and existing stores have developed new business strategies.

The American Booksellers Association (ABA), an industry group for independent bookstores, has reached a deal with Google Editions -- Google's digital bookstore, due to launch this fall -- that would allow its 14,000 members to sell Google's eBooks through their websites.