Stationery Goods Retailing in Australia

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consolidation trends are echoed further up the paper chain, at both the manufacturing and wholesale level, reflecting the generally weak nature of this particular value chain. For example, Australian Paper acquired the assets of local manufacturer Australian Envelopes after it was placed into voluntary receivership in July 2011. With both upstream manufacturers and wholesalers changing hands, this has had implications for the day-to-day operations of downstream retailers, as has Australian paper production volumes. Local paper manufacturing plants have been closed to the detriment of local paper availability. For example,

the closure of printing and writing paper production facilities in Tasmania in 2009-10 resulted in local production levels for the year falling by more than half. While local production increased by 5.0% in 2011-12, levels remain significantly below pre 2009-10 volumes. Small-scale niche players, such as Smiggle and Kikki.K, have continued to roll out new stores in recent years, masking the full extent of store closures in the industry. In 2013-14, the industry is estimated to consist of 1,230 retail outlets operated by 835 companies with a workforce of 3,350 people. This compares with 1,300, 885 and 3,555, respectively, five years earlier.

% change

2

−6

−4

−2

0

2006 08 10 12 14 16 18Year

Industry revenue

SOURCE: WWW.IBISWORLD.COM.AU

WWW.IBISWORLD.COM.AU Stationery Goods Retailing in Australia October 2013 8

Industry Performance

Industry Outlook continued

ink products. Fashion-based or designer stationery, along with specialty papers and associated scrapbooking accessories,

will also post stronger sales relative to their traditional counterparts that stock standard paper and pens.

External pressures The industry will continue to compete with retailers outside the industry selling stationery goods. Cheap imported products will also remain a competitive threat, so too will the growing array of ‘bricks and clicks’ retailers (both local and international), which are offering both discounted commodity-style products and niche products including specialty fine art and scrapbooking supplies. This means that there is no end in sight of the tough trading conditions faced by stationery retailers.

Upstream conditions within the paper value chain will be equally austere, with both the relevant paper stationery manufacturing and wholesaling segments expected to face challenging conditions. Further downsizing expected in terms of local paper stationery production as manufacturers continue to relocate manufacturing operations offshore, have implications for the source of product sold by local retailers. It may thus translate into a growing reliance