Who Owns Whom

wholesale retail trade books stationery industry south africa

The Wholesale and Retail Trade of Books and Stationery Industry in South Africa 2020

Louise Mitchell | South Africa | 28 October 2020

The Wholesale and Retail Trade of Books and Stationery Industry in South Africa 2018

Yasmin Mahomedy | South Africa | 29 August 2018

Enquire about this report

Introduction

The retail sector was severely affected when trade was prohibited during the coronavirus lockdown from March to June 2020. Booksellers and magazine and newspaper publishers were already under pressure prior to the lockdown due to the recession that constrained consumer spending. The growth in book sales is expected to be below 1% per annum over the next three years while sales of magazines and newspapers are expected to decline. An increase in book sales to state departments in 2019 was offset by a decline of 51% in sales by supermarkets and shops. The lockdown exacerbated an already precarious situation for some publications and resulted in the closure of at least 17 magazines and six newspapers, while others announced they would move to digital editions. Retail sales are expected to be affected by the reduction in the number of titles available. South Africa is a net importer of stationery. China was South Africa’s biggest trade partner, accounting for 49.4% of total stationery imports of R1.2bn in 2019.

Strengths

• A variety of magazines provide for the needs of different groups of readers.
• State and provincial spending on school books is driving sales.
• Various daily, weekly and weekend newspapers are published.

Weaknesses

• Decrease in export sales of books.
• Increases in municipal bills increase the input costs of retailers.
• Paper stationery is perceived as being wasteful and harmful to the environment.
• Stationery suppliers’ costs affect profit margins.
• Stationery traders compete with cheap imports.
• The volatile exchange rate impacts the price of imported goods and raw materials, pushing prices up.

Opportunities

• Booksellers expect online sales to boost their declining income from physical sales.
• Demand for African literature titles could result in increased sales if more titles become available.

Threats

• Consumer spending on reading material is expected to continue decreasing.
• Deteriorating economic conditions are expected to curb retail trade.
• Digital books, magazines and newspapers are taking market share.
• The decline in circulation of magazines and newspapers affect the income of retailers.

Outlook

Analysts said economic recovery from the impact of coronavirus will take a few years. Retail will continue to change as consumers embrace online shopping. Booksellers and stationery shops that are located in large shopping malls might not see sales returning to pre-coronavirus levels as some shoppers tend to visit smaller local centres where they feel less exposed to the virus. The trend toward working from home is expected to continue post-pandemic, reducing foot traffic in shopping centres and malls during weekdays. Exclusive Books CEO Grattan Kirk was encouraged by the fact that the public bought books during the lockdown and hoped that the demand for physical books on psychology, self-help, biographies and fiction will continue. Role players said online sales of stationery will continue to grow as products are readily available. Sales of luxury items, which are mostly imported and expensive, are not expected to recover soon in the very constrained economic environment. Retail traders are hopeful that consumers would have disposable income to spend on art and hobby stationery. Role players said the wholesale industry will feel the effects of the pandemic long after it is over as the warehousing and distribution sector adjusts to the new ways in which retail will be conducted via omnichannels.

The Wholesale and Retail Trade of Books and Stationery Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Wholesale and Retail Trade of Books and Stationery Industry in South Africa 2018-08-29

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 5
2.2. Geographic Position 6
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 17
4.1. Local 17
4.1.1. Trade 20
4.1.2. Corporate Actions 22
4.1.3. Regulations 23
4.1.4. Enterprise Development and Social Economic Development 24
4.2. Continental 25
4.3. International 27
5. INFLUENCING FACTORS 29
5.1. Coronavirus 29
5.2. Economic Environment 31
5.3. Rising Input Costs 33
5.4. Technology, Research and Development (R&D) and Innovation 33
5.5. Environmental Concerns 34
5.6. Labour 36
6. COMPETITION 37
6.1. Barriers to Entry 38
7. SWOT ANALYSIS 38
8. OUTLOOK 39
9. INDUSTRY ASSOCIATIONS 40
10. REFERENCES 40
10.1. Publications 40
10.2. Websites 41
APPENDIX 1 42
Summary of Notable players 42
COMPANY PROFILES 49
ADAMS BOOKSELLERS (PTY) LTD 49
AMAZON.COM INC 51
BIC (SOUTH AFRICA) (RF) (PTY) LTD 55
BIDVEST BRANDED PRODUCTS HOLDINGS (PTY) LTD 57
BK INK CC 60
BOOK LOUNGE CC 62
BOOKS MAGAZINES AND STATIONERY CC 63
BOOKSITE (PTY) LTD 68
BRIDGE BOOKS CC 70
C ROELOFSE 72
C THOMPSON 73
CAXTON AND CTP PUBLISHERS AND PRINTERS LTD 74
CHRISTELIKE UITGEWERSMAATSKAPPY (PTY) LTD 79
CIRCULAR OFFICE SUPPLIES AND PRINTERS CC 82
CNA OPERATIONS (PTY) LTD 84
ESTORIL BOOKS AND STATIONERS (FOURWAYS) (PTY) LTD 86
EXCLUSIVE BOOKS GROUP (PTY) LTD 88
EXECUTIVE INFORMATION SERVICES CC 92
FLIP FILE (PTY) LTD 94
FOGARTY'S BOOKSHOP CC 96
FORMS MEDIA INDEPENDENT (AFRICA) (PTY) LTD 98
FRANK R THOROLD (PTY) LTD 100
FREEDOM STATIONERY (PTY) LTD 102
HARGRAVES LIBRARY SERVICE (PTY) LTD 104
INTERSTAT STATIONERY (PTY) LTD 106
JUTA AND COMPANY (PTY) LTD 108
KND TRADE CC 111
LOOT ONLINE (PTY) LTD 112
LORMIK CC 114
LOVE BOOKS (PTY) LTD 116
MACMILLAN SOUTH AFRICA (PTY) LTD 117
MASSMART HOLDINGS LTD 120
MEDIA24 (PTY) LTD 126
MELBRO RETAIL (PTY) LTD 134
MIND MATTERS EDUCATIONAL BOOK DISTRIBUTERS CC 136
NATIONAL STATIONERY CC 138
OFFICE NATIONAL AFRICA (PTY) LTD 140
OXFORD UNIVERSITY PRESS SOUTHERN AFRICA (PTY) LTD 142
PARCELNINJA (PTY) LTD 145
PETERS PAPERS (PTY) LTD 147
PICK N PAY STORES LTD 149
PNA STATIONERS (PTY) LTD 154
PRIMA TOY AND LEISURE TRADING (PTY) LTD 158
PROCURE TRADE (PTY) LTD 160
RNA RETAIL GROUP (PTY) LTD 162
SHALMAY FAKIE GROUP CC 163
SHOPRITE HOLDINGS LTD 165
SPAR GROUP LTD (THE) 170
TAKEALOT ONLINE (RF) (PTY) LTD 176
TASMAYA WHOLESALERS CC 181
TREFOIL MANUFACTURING (PTY) LTD 183
VAN SCHAIK BOOKSTORE (PTY) LTD 185
VAN'S OFFICE SUPPLIES (EASTERN CAPE) CC 189
VIRTUAL BOOKSHELF CC 190
WEST PACK LIFE STYLE (PTY) LTD 191
WORDSWORTH BOOKS CC 193

Introduction

This report focuses on the wholesale and retail trade of books and stationery, which includes calendars, posters and cards. Book exchange shops and retail trade in books via mail-order are excluded as they are classified under groups 6240 and 62511 respectively. The market for books, newspapers and stationery accounts for 3.1% of overall retail sales and the last confirmed value for the market for books, news, and stationery was R29bn in 2014. There has been an increase in South Africa’s education budget, with R15.3bn allocated in 2018 to provide 183 million workbooks and textbooks, teacher support and increased access to information and communication technology. However, education departments in most provinces procure text books via managing agents and bypass bookstores.

Strengths

• Book and stationery stores are located throughout the country.
• Organised retail sectors with active, national representative bodies.

Weaknesses

• High costs of books
• Paper stationery is perceived as being wasteful and harmful to the environment.
• The absence of a book policy, or development support for SMMEs, makes it difficult for small enterprises to survive.

Opportunities

• Demand for African literature titles could result in increased sales if more titles become available.
• Digital books could lead to a reduction in the price of printed books.
• Growth for independent book stores due to the changing culture and demands of many young South Africans. (discussed under State)

Threats

• Deteriorating economic conditions are expected to curb retail trade.

Outlook

While some independent bookstores are experiencing growth, the majority of South African booksellers are experiencing a decline in sales. The country’s slow growing economy and increasing living costs have placed further pressure on the incomes of indebted consumers, while the weakening of the rand has increased the cost of books and stationery even further. According to Penguin Random House SA, “e-book sales have slowed and physical books remain in a slow but steady decline.” The demand for books in the education sector is expected to increase if the Department of Education does not implement a switch from print textbooks to digitised learning on tablets. However, bookstores will not fully benefit from this demand if the education departments continue to procure text books via managing agents.

The Wholesale and Retail Trade of Books and Stationery Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Wholesale and Retail Trade of Books and Stationery Industry in South Africa 2020-10-28

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 12
4.1.2. Regulations 12
4.1.3. Enterprise Development and Social Economic Development 13
4.2. Continental 14
4.3. International 15
5. INFLUENCING FACTORS 16
5.1. Economic Environment 16
5.2. Rising Operating Costs 17
5.3. Technology, Research and Development (R&D) and Innovation 17
5.4. Labour 19
5.5. Cyclicality 19
5.6. Environmental Concerns 20
6. COMPETITION 20
6.1. Barriers to Entry 21
7. SWOT ANALYSIS 22
8. OUTLOOK 22
9. INDUSTRY ASSOCIATIONS 23
10. REFERENCES 23
10.1. Publications 23
10.2. Websites 23
APPENDIX 1 25
Summary of Major Players 25
COMPANY PROFILES 31
ADAMS BOOKSELLERS (PTY) LTD 31
AMAZON.COM INC 33
BIDVEST OFFICE AND PRINT HOLDINGS LTD 37
BOOK LOUNGE CC 40
BOOKS MAGAZINES AND STATIONERY CC 42
BOOKSITE (PTY) LTD 47
BRIDGE BOOKS CC 49
CAXTON AND CTP PUBLISHERS AND PRINTERS LTD 50
CHRISTELIKE UITGEWERSMAATSKAPPY (PTY) LTD 55
EBOOK SHOP CC 58
EDCON LTD 59
ESTORIL BOOKS AND STATIONERS (FOURWAYS) (PTY) LTD 63
EXCLUSIVE BOOKS GROUP (PTY) LTD 65
EXECUTIVE INFORMATION SERVICES CC 69
FLIP FILE (PTY) LTD 71
FORMS MEDIA INDEPENDENT (AFRICA) (PTY) LTD 72
FRANK R THOROLD (PTY) LTD 74
FREEDOM STATIONERY (PTY) LTD 76
HARGRAVES LIBRARY SERVICE (PTY) LTD 78
INTERSTAT STATIONERY (PTY) LTD 80
JUTA AND COMPANY (PTY) LTD 82
LOOT ONLINE (PTY) LTD 85
LOVE BOOKS (PTY) LTD 87
MACMILLAN SOUTH AFRICA (PTY) LTD 88
MASSMART HOLDINGS LTD 91
MEDIA24 (PTY) LTD 97
MIND MATTERS EDUCATIONAL BOOK DISTRIBUTERS CC 105
NATIONAL STATIONERY CC 106
PARCELNINJA (PTY) LTD 108
PETERS PAPERS (PTY) LTD 110
PICK N PAY STORES LTD 112
PNA STATIONERS (PTY) LTD 117
PRIMA TOY AND LEISURE TRADING (PTY) LTD 121
PROCURE TRADE (PTY) LTD 124
RNA RETAIL GROUP (PTY) LTD 125
SHALMAY FAKIE GROUP CC 126
SHOPRITE HOLDINGS LTD 128
SPAR GROUP LTD (THE) 133
TAKEALOT ONLINE (RF) (PTY) LTD 138
TREFOIL MANUFACTURING (PTY) LTD 141
VAN SCHAIK BOOKSTORE (PTY) LTD 143
VIRTUAL BOOKSHELF CC 147
WORDSWORTH BOOKS CC 148