I’m surprised that literary fiction does not sell well in hardback. Those are the books you want people to see on your shelf!
The pride and joy of publishing, literary fiction has always been wonderfully ill suited to the very industry that sustains it. Like an elegant but impoverished aristocrat married to a nouveau riche spouse, it has long been subsidized by mass-market fiction and by nonfiction ripped from the headlines. One supplies the cachet, the others the cash.