The Bookseller.com

2nd December 2008

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Indie backs Bertram ruling

22.08.07 Graeme Neill

An independent bookseller has defended the Competition Commission's decision to provisionally clear the merger between wholesalers Bertrams and THE. Ian Nicholson, owner of Alison's of Tewkesbury, said the decision would lead to better conditions for the independent sector.

"This has already been proved by the discounts being offered by both concerns to independents, and I am sure it will long continue," he wrote in a submission to the CC. "I believe the industry will be better served by two strong players, than two plus one weak one," he added. "As there is already sufficient legislation in place to stop the two concerns making cartel agreements to hurt independents, I have never had any reservations about this merger."

The CC will deliver its verdict on the merger between the wholesalers within the next three weeks. In its provisional ruling last month, it said the merger was not likely to substantially lessen competition in the supply of books, adding that competition from rival Gardners and direct supply from publishers would act as a sufficient counterweight to the newly merged company. Only one provisional decision has been reversed by the CC in the past 10 years.

But other responses to the CC's decision saw an independent bookseller claiming the merger "would not be disastrous, but [is] basically bad news". The bookseller, who chose to remain anonymous, said buying directly from publishers is not as easy as the CC suggested.

"Publishers really don't want a plethora of small customers and make this clear with surcharges, reduced discounts, postage charges etc," he wrote. "There is also the extra time and work involved for us in handling dozens of separate accounts instead of a handful."

Bertrams and THE are legally bound to trade as separate entities. If the merger goes ahead, Woolworths, THE's owner, will split THE's books business and absorb it into Bertrams Group and its subsidiary EUK. Many of the 150 staff retained by THE –during the CC investigation to keep up book supply would face redundancy.

Earlier this week the CC announced it was looking into claims that supermarkets Tesco and Asda have been pressurising suppliers to cut prices. This investigation solely relates to the supply of groceries and will not include the supply of books.

Bertrams EUK woolies THE Graeme Neill