Three independent stationery and bookselling groups are banding together to create a $140 million co-operative with bigger buying power.
Paper Plus said yesterday that it would merge with the Topline franchise and the Paper World co-operative, creating an alliance of 171 book and stationery stores throughout New Zealand.
Paper Plus is in
most big cities and towns, with 86 stores, while Topline's 40 stores and Paper World's 45 stores are in smaller provincial and country towns.
Paper Plus chief executive Garry Donoghue said the alliance would capture about a quarter of the stationery and book retailing market.
Paper Plus had a 16 to 20 per cent share of the market, with Whitcoulls holding 60 per cent, and Warehouse Stationery continuing to make inroads.
The combined entity would have a turnover of $140 million, with a "reasonably ambitious" plan for growth, Mr Donoghue said.
The brands were likely to be consolidated into one further down the track, but the stores would continue to be owner-operated, he said. "Some of these guys, the smaller operators, were not able to be competitive in their provinces - they will now be able to be so."
NZPA
