By SIMON HENDERY
Nationwide chain Payless Plastics' dominance of the speciality plastics market is being challenged by a group of breakaway retailers who are setting up their own chain.
The new grouping, Plastic Retailers (NZ), says it is confident of signing up 30 of Payless Plastics' 35 store owners for the
new venture.
The new group will operate as Plastic Box (Group).
A launch for the new group is scheduled next month.
Payless Plastics (NZ) director Steve Nigro said he doubted 30 stores would defect to the new group because the owners were contracted to Payless Plastics.
"So if they are thinking about that I would say that they would be going down a very dangerous path."
Plastic Retailers chief executive Vaughan Moss agreed that contract issues had to be sorted between individual retailers and Payless Plastics.
Mr Moss said he was not sure which retailers would be ready to relaunch as part of the Plastic Box group at the end of October.
But he said that would not affect the timing of the launch.
"Some of them do have contracts [with Payless Plastics]; it appears some of them don't have contracts."
Mr Moss said his company had established relationships with suppliers.
These suppliers, he said, were enthusiastic about the company's entry into the market.
The company was also sourcing products itself.
Mr Moss said that customers would notice little change in pricing or product range at the rebranded stores.
He said the product range would eventually be expanded.
