Bordering on ridiculous

Bookstores are in trouble because they price books too high, say observers. Photo / Janna Dixon

Bookstores in New Zealand are selling top titles at two to three times their price in the US and Britain, which may help explain why two of the country's biggest book chains were this week put into administration.

Experts said books had simply been priced out of the reach of ordinary New Zealanders. Society of Authors executive director Maggie Tarver blamed retailers' mark-ups and GST.

"We've been calling for GST to be taken off books," she said. "If it was lifted it would give retail outlets a better chance to compete."

Having a large piece of expensive Queen St real estate was a huge expense, she added, and selling digital books was more viable.

The Herald on Sunday revealed at Christmas that Whitcoulls and Borders had almost entirely stopped restocking their shelves, to the alarm of New Zealand publishing companies.

This week, the sister stores' parent company, REDgroup Retail, was put into administration, following in the stumbling footsteps of Borders USA and Borders UK.

Publishing insiders fear that New Zealand may now be deluged with remaindered pulp fiction and popular non-fiction from the closed Northern Hemisphere stores as Whitcoulls and Borders try to trade out of trouble.

That would push New Zealand titles off the shelves and threaten the revenues of local publishers and authors.

But for now, Kiwis are still paying top dollar for books that are cheap overseas.

A Herald on Sunday analysis of popular titles this week revealed that Whitcoulls, Borders, Dymocks and Paperplus were consistently selling books for two to three times the price of online giant Amazon, and 50 per cent more than a British retailer.

Even when shipping and handling costs are included, the price of buying from overseas online retailers is much lower.

Yesterday, Whitcoulls and Borders closed their New Zealand online shops, with identical messages blaming the "temporary" closure on site maintenance.

Angry Whitcoulls customers were told they could not use their gift vouchers unless they matched the face value with an equal sum in cash.

Shoppers blamed the book chains' troubles on exorbitant prices and competition from internet sellers. Statistics NZ figures show the number of people who made online purchases rose from 3 per cent in 2006 to 4 per cent in 2009.

"I suppose the ease of buying online has contributed to places like this going under," said Barrie-John Partridge, 30, of Grey Lynn.

Ansley Darby, 43, of Devonport, agreed. "I moved to New Zealand from England three years ago and think books are very expensive here compared to the UK.

"I only buy if I really want something. I get friends and family to buy books and send them over."

But Rob Smith, chief executive of Paperplus, said the trouble at Whitcoulls and Borders was a reflection of funding issues within their business rather than an industry-wide problem.

Bookstores were perfectly well placed to compete online with the likes of Amazon, he indicated. "Almost every book store in New Zealand has its own website and purchasing online is another option."

He believed bookstores would survive because of the experience and the tactile character of books, he said.

"People will still go into stores for discussion, events and the passion a bookseller brings." He said book sales were improving.