The story of Ernster begins with Pierre Ernster, a teacher who went on to become a co-author and publisher, and who decided to open a general bookshop in the town centre 137 years ago. The shop is still in the same location today. The business has remained family-run throughout its history: Pierre’s son, Ferdinand, took over the business in the 1920s; it was then run by Claire Ernster during the Second World War. In 1958, Pit Ernster ensured the business’s continuity by taking over the family shares.
According to Paul Ernster, when it comes to succession, dialogue is the best defence against misunderstanding: ‘The success of a succession does not depend on strategy, but on the quality of the dialogue between the two generations. The main lesson to be learnt is that one must ‘over-communicate’ to leave no room for unspoken assumptions. Misunderstandings are eliminated by systematically articulating everyone’s expectations. In this way, we prevent assumptions from turning into frustrations.”
He also advises:
- to prioritise guidance: ‘The person handing over the reins must shift from giving orders to offering helpful guidance, allowing the new generation to take ownership of projects without feeling stifled’;
- mutual active listening: ‘Commitment arises when the successor feels that their proposals for change are being listened to and the predecessor feels that their legacy is being respected’.
How do you manage to balance the family’s expectations with the company’s economic and strategic imperatives, and which trade-offs have been the most decisive?
“To balance family and business, we’ve adopted a simple rule: the business is like another person sitting at our table. It has its own needs, its own well-being and its own priorities:
- arbitration: when faced with a dilemma, the question is no longer ‘What does the family want?’, but ‘What does the business need to survive and grow?’;
- The result: this helps to take the personal element out of conflicts. Strategic decisions are no longer about doing favours for family members, but about fulfilling our duties to the organisation we all serve.
The most crucial decision was to prioritise the company’s well-being over the individual interests of family members.
Paul and Fernand Ernster at the bookshop. Photo: Guy Wolff/archives
Which decisions or developments in governance or the professionalisation of management have had the most significant impact on your company?
“The organisational restructuring: we have appointed ‘Next Gen’ staff to key strategic management roles, not on the basis of seniority, but according to their actual skills, thereby clarifying everyone’s responsibilities.
The establishment of a board of directors: the creation of a board has brought a more rigorous and objective perspective, forcing the company to look beyond the short term.
And a structured internal communication system: we have put an end to informal channels in favour of transparent and official communication, ensuring that information flows freely and accurately between the family, senior management and the teams.
How does your company balance the need to honour its heritage with the need to innovate or transform itself in order to remain competitive?
“With a forward-looking vision: despite the major crises they have weathered, particularly the challenging changes in the book industry and the retail sector, my parents have always retained an undiminished curiosity about innovation.
The power of trust is also important: the handover did not take place through resistance, but through genuine delegation. They accept the necessary changes because they trust me to take the company forward.
Finally, we must learn from the past in order to innovate: their experience of past crises serves as a foundation for us to anticipate current changes without losing our identity.
What were the most decisive choices made regarding the financing of growth, and how did they influence the company’s governance and trajectory?
“The technological leap forward, achieved through the acquisition of an expensive but highly efficient computer programme tailored to the scale of our business, has been the driving force behind our productivity.
We have remained true to our core values by continuing to offer books in four languages.
Our expansion and modernisation: we have invested in opening new outlets whilst refurbishing our existing network, ensuring a consistent and modern customer experience.
A strategic diversification: the introduction of ‘non-book’ products and the launch of ‘Café’ concepts in two outlets have enabled us to increase our margins and transform our bookshops into vibrant community spaces.
What tax or legal issues have proved to be the most critical for your family business, and how have you addressed them with a long-term perspective in mind?
“Through trusted partnerships: the challenge was to build a strong and transparent relationship with a bank and tax specialists who understand our long-term family vision.
And thanks to the peace of mind that comes with expert guidance: by surrounding yourself with experts, you can delegate the technical complexities and focus on innovation, whilst ensuring a smooth transition free from legal risks.
What strategies have been most effective in developing your product or service offering whilst remaining true to the company’s core values?
“A coherent diversification: the integration of ‘non-book’ items – educational games, stationery – and the creation of coffee corners have transformed our bookshops into lively spaces where customers want to spend time, without losing our identity.”
And our multilingual identity: we have remained true to our core values by continuing to offer books in four languages – Luxembourgish, French, German and English – ensuring our local expertise whilst modernising the customer experience.
In particular, Paul Ernster came up with the idea of taking over the Domino toy shop, offering the family business a new avenue for diversification. Photo: Paperjam/archives
At what point did you feel it was necessary to accelerate the company’s growth, and what lessons have you learnt from this phase of scaling up?
“There wasn’t a single defining moment, because I believe you must always invest in growth. Standing still is the same as going backwards; development must be an ongoing process so that you never fall behind the market.
The key lesson is that growth requires investment before the need becomes urgent. This enables organisations to stay one step ahead and turn periods of change – such as the shift to digital or diversification – into opportunities rather than crises.
What were the main drivers – and the main challenges – of your internationalisation strategy?
“We have no plans for physical expansion abroad; our strategy is based entirely on our website, which, with 30 years of experience, enables us to serve a global clientele from Luxembourg.
In your experience, how can a family business attract and retain key talent in an increasingly competitive environment?
“To attract and retain talent, we focus on our family-oriented culture and the promotion of strong values; we offer meaningful work – culture and knowledge – in a supportive environment where every employee feels valued for more than just economic reasons.
How has increased international competition in your domestic market changed your positioning, organisation or strategy?
“The arrival of players such as Amazon has radically transformed the way we operate, forcing us to re-evaluate our approach on a daily basis; we have responded by focusing on hyper-local service, personal advice and a distinctive multilingual offering that algorithms cannot fully replace.”
This article was written for the June 2026 issue of Paperjam magazine, published on 20 May. The content is produced exclusively for the magazine. It is published on the website to contribute to Paperjam’s comprehensive archive. Click on this link to subscribe to the magazine.
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