US bookstore crosses Kiwi border

By Karyn Scherer

Auckland booksellers are bracing themselves for stiff competition from America's second-largest book chain, Borders, as it prepares to open its first store in New Zealand.

But booklovers hoping for a bonanza of bargain prices could be disappointed, despite claims by the Commerce Ministry last year that New Zealanders are paying too much for both books and CDs.

The Michigan-based listed company expects to open its first New Zealand mega-store in mid-October as part of the new Force Entertainment Centre in Auckland's central business district.

With 3600 sq m of retail space, the store will be six times as big as its nearest competitor - Dymocks' flagship store in the Atrium On Elliott shopping plaza - and will stock more than 140,000 titles, as well as 45,000 CDs, 5000 videos, and 3000 magazines.

Since adding best-sellers to its shelves, discount retailer The Warehouse is believed to have snared a significant chunk of the $200-million-a-year book market. However, other chains are playing down any possibility of a further price war.

During a visit to Auckland yesterday, Borders' operations director for the Pacific rim, Kate Sprouls, was reluctant to promise lower prices.

The chain had proved successful because it worked closely with local communities, and offered a huge range as well as an entertaining environment, she said.

"What you'll find is we'll have some value statements in the store and we have some programmes ... but it is not the case that we deep-discount across the board. But it is important to be competitive, so I think what you'll find is we are competitive to the market."

At this stage, Borders was not planning any other New Zealand stores, although more might eventually be considered, she said.

While the chain is promising a strong emphasis on New Zealand authors, others in the book trade are treating it warily.

The chairman of the Booksellers Association, Tony Moores, said the industry was concerned the chain appeared to be sourcing most of its stock through Australia.

Mr Moores, also the marketing manager for book and stationery chain Paper Plus, said small independent booksellers were anxious about the impact the chain might have.

"Overall, though, it does have the potential to expand the market. No doubt it will keep everyone firmly on their toes, which is not a bad thing."

The biggest player in the book industry, Whitcoulls, has admitted it is taking Borders seriously, describing it as a "class act".

The retailer, whose future ownership is again being debated, has already indicated it intends putting a greater emphasis on multi-media sales. It is also developing a new chain of stores, Bennetts, at the premium end of the market.

Meanwhile, Dymocks is also putting a brave face on the impending competition. It is still hunting for new owners for three of its seven stores, after severing its links with its main New Zealand franchisee, but is once again talking about further expansion.

Dymocks' sales and marketing manager for Australia and New Zealand, Jeff Higgins, admitted Borders had severely hurt two of its Melbourne stores when it moved into Australia last October.

However, Dymocks' new franchise manager for New Zealand, Paul Sunde, said the chain was hoping for at least one positive spin-off - there was hope the store would revive interest in the central business district.

"It's really a game of wait and see. But I think it's great for bookselling and the CBD, because it does give Auckland a point of difference ... the renovation of some of the malls of late has definitely pulled people away from the central city, and whatever we can do as retailers to get them back there will be good for business."