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23rd July 2008
Independent booksellers join forces to compete
In a bid to compete with the major national chains and the supermarkets, independent bookshops across the UK are joining forces to approach wholesalers in an attempt negotiate better prices.
The BBC has reported that independent bookshops have traditionally struggled to get the best deals from wholesalers as they do not buy enough to obtain the savings that larger chains are offered.
Now, bookshops are starting to join groups that increase their buying power. According to the broadcaster, the Leading Edge Books company already has 55 members in the UK.
These independent retailers pay a monthly £40 fee and get access to greater discounts than they could negotiate directly with wholesalers.
Paul Henderson, general manager of Leading Edge Books in the UK, explained that wholesalers also approved of the new system.
"They want, by and large, to have a dynamic and thriving independent sector and it's a hard group to reach," he told the BBC.
Another group, the Independent Booksellers' Group, has around 125 members, giving it an impressive buying power when it contacts wholesalers.
"It allows us to compete - doesn't allow us to beat the competition on price but at least it allows us to compete," founder Tim Walker said to the broadcaster.
Recently, the Federation of Small Business warned that large businesses were taking advantage of their position by demanding lower prices from wholesalers.
(c) 2008 Adfero Ltd.
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