Paper Plus bucks trend by lifting sales

Paper Plus has almost finished upgrades to its network of 160 shops. Photo / Supplied

Paper Plus is close to completing a major upgrade of its 106-store network in New Zealand, and its boss says the book and stationery chain is continuing to grow sales amid tough market conditions.

Since the opening of a concept store at Auckland's Sylvia Park shopping centre in 2007, the chain's franchisees have invested more than $22 million into the refurbishment and "brand redirection" of their stores.

"It's very significant in today's economic climate," said Paper Plus chief executive Rob Smith.

He said the upgrade was about 85 per cent complete. "Customer feedback to the stores has been very positive."

According to data from market research firm Nielsen, book sales' volume in New Zealand has grown by 1.4 per cent in the year to September, while the value of sales has fallen by 4.5 per cent. But Paper Plus is bucking the trend, with volume up 9.1 per cent and value up 15.1 per cent over the period.

Smith attributed the strong performance to the new-look stores and improved marketing.

Paper Plus said it was now placing greater emphasis on books, as opposed to stationery, and had more streamlined and consistent store layouts.

The retail chain also has a new website and online store.

Smith said a franchise system was a good way to run a book chain, as the owners had "skin in the game".

"[Store owners] have got a little more to lose and because of that they're a little more hungry than a manager."

This year has been a tough one for book retailing, with Whitcoulls and Borders stores going into voluntary administration in February and then being bought by the James Pascoe Group, which owns Farmers.

Smith said Paper Plus was seeing growth in its online sales and despite competition from overseas internet retailers, like amazon.com, there was a future for bricks-and-mortar book retailing in this country.

"There's challenges in any kind of retail in today's market, but as long as you've got the right format and an offer the consumer is happy with then you should be fine."

New Zealand's total book market is worth $250 million annually, while the stationery market is valued at $1.23 billion, according to Paper Plus.