Merchanting

Traditional paper merchants have been under pressure for the last five years. Margins are eroding via an overall pressure on the supply chain, and a pressure on retail margins that is mainly driven by competitive pressure from printers. Additional market pressures come from alternative sales channels, such as office suppliers and retail channels that use paper as commodity products to promote their remaining product basket.

Merchants have responded with mergers and acquisitions, and the creation of pan-European and global merchant brands to achieve synergies and extend market reach. All merchants are looking to extend their value proposition either through a closer integration with their parent companies in case of paper companies, or through the creation of new service or product offerings.