How to succeed in running a book shop?

Of course the general wisdom of starting a bookshop is: don't. Not enough people read, they say, and only lowbrow romance volumes are expected to bring in profits.

But you do have book shops that have carved out little niches for themselves. Maybe they served good coffee too. Maybe you could browse before buying. Maybe they had good music piped through.

What are your thoughts? How can someone start a successful (i.e. profitable) book shop? The kind that earns a patron's loyalty?

Bonus question: is Davao ready for a specialty book store?

Know your goods. (Think High Fidelity, books instead of music)
You should know enough to at least suggest a good new book (dont start debating on what a 'good' book is, now hehe) of the popular authors and diff. genres. Ever notice that whenever you walk in a big bookstore, there is at least one clueless customer talking to a salesperson asking what book they should buy for a bookworm friend/relative?

...and plus points if youve got writer friends (Think Hemingway, J.Joyce and G.Stein in 'Shakespeare and Company')

Lots and lots of books!

Or a specific "genre" eg just thriller, but then have every single thiller book, anyone has ever heard of, including all those long lost out of print books. Particularly stock books that people can't buy on famous internet book selling sites.

You hit the nail right on the head... knowing your target market and carving a niche are elements of a successful business.

NBS is the only bookstore I've been to in Davao. It's frustrating to note their shelf titles are paltry and hardly up to date. :(