Retail Book Industry in Nz

3974 Words May 21st, 2011 16 Pages
Management Consulting Report
The New Zealand Book Retail Industry Analysis

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|Date: | 27 August 2009 |

Executive Summary

The aim of this report is to analyse and outline the business perspectives for opening a new independent book store in the Auckland region. The report analyses the current book retail industry and specifically discusses a new book shop’s viability highlighting the internal and external risks and opportunities as well as strengths and
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The group is also internationally operating in Australia and Singapore with more than 130 Angus & Robertson and Borders stores (“Big boys’ books”, 2009).

After acquiring the Australasian and New Zealand businesses of the second-largest United States bookstore chain Borders[2] (“Whitcoulls ' Borders bid cleared”, 2009) in 2008 the Whitcoulls Group obtained access to a high demographic serious books market niche (“Whitcoulls widens”, 2008). As a result, the Whitcoulls Group operates 90 stores across New Zealand (“Whitcoulls finally picks”, 2007) accounting for up to 45% of the book retail market (“Whitcoulls widens”, 2008). Further to the existing dominance in all the CBD areas, Whitcoulls is planning to expand into small-town areas starting from Te Awamutu, Richmond and Ashburton (“Booksellers ready”, 2008).

The recent recession prompted the group to seek cost cuts by merging its Australasian retail operations’ support offices into one division located in Australia (“How the book trade”, 2009). The group is also looking into opening the online selling operations in August (“Booksellers ready”, 2008).

2.1.2 Paper Plus

The Paper Plus chain being fully New Zealand-owned is the second-largest book retailer in New Zealand (“New look”, 2008). The company operates as a franchise system and has been around for more than 25 years
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