Office Supplies and Stationery Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,100 firms in the US sell office supplies, school supplies, stationery, computers, office equipment and furniture at retail. Firms may also offer business-related services, such as printing, copying, mailing and shipping, or technology-related services, such as software installation.
Competition from Alternative Stores
Office supply and stationery retailers face stiff competition from a variety of alternative brick-and-mortar channels, including wholesale clubs, discount stores, mass merchandisers, food and drug stores, and computer and electronic stores.
Competition from Online Retailers
Like most of the retail industry, office supply and stationery retailers face intense competition from online-only channels, which offer convenience and enjoy lower overhead costs.
Industry size & Structure
The average office supply and stationery retailer employs about 33-34 workers and generates $4-5 million annually.
- The office supply and stationery retailing industry consists of about 2,100 firms that employ 71,000 workers and generate about $10 billion annually.
- The industry is highly concentrated; the top eight companies account for 84% of industry revenue.
- Large firms include ODP Corporation (Office Depot and Office Max) and Staples. Stationery retail chains include Hallmark Gold Crown (independently owned and stores owned by Hallmark Cards, Inc.) and Paper Source (Elliot Investment Management).
Industry Forecast
Office Supplies and Stationery Stores Industry Growth
Recent Developments
Feb 7, 2025 - Commercial Bankruptcies Rise
- Commercial bankruptcy filings increased 17% in 2024 compared to 2023, according to Epiq Bankruptcy Solutions and ABI. Commercial Chapter 11 filings increased 20% in 2024. The total number of commercial Chapter 11 filings rose to 7,879 in 2024 from 6,583 in 2023. ABI Executive Director Amy Quackenboss said, "The continued increase in bankruptcies over the past year reflects the growing list of economic challenges faced by consumers and businesses. Rising interest rates, inflation, increasing geopolitical tensions and shifts in post-pandemic consumer spending have more struggling businesses and families turning to bankruptcy for a financial fresh start from their growing debt loads." An uptick in corporate bankruptcies could reduce demand for office supplies.
- The Trump administration’s tariff-based trade strategy could disrupt the US paper industry and increase its costs, according to the American Forest and Paper Association (AFPA). On January 21, 2025, President Trump declared that a 25% tariff would be imposed on imports from Canada and Mexico beginning on February 1, 2025. On February 3, Trump agreed to pause the tariffs for 30 days after Canada and Mexico agreed to increase their border security and drug interdiction efforts. In 2024, pulp and paper product trade between the US and Canada totaled $14 billion, and pulp and paper trade with Mexico was over $5 billion, according to the AFPA. The paper-making process includes several steps - making pulp from wood chips, using pulp to manufacture rolls of paper or paperboard, and using those to make converted products such as stationery. A single product can cross borders several times during this process and face levies each time it does. Tariffs could prompt paper price increases throughout the supply chain. If office supplies stores’ costs rise and they can’t be passed on to customers, margins could suffer.
- The Conference Board’s Consumer Confidence Index decreased to 104.1 in January from 109.5 in December. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions— dropped 9.7 points to 134.4. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions— decreased 2.6 points to 83.9. The Conference Board’s Chief Economist Dana M. Peterson said, “Consumer confidence has been moving sideways in a relatively stable, narrow range since 2022. January was no exception. The Index weakened for a second straight month, but still remained in that range, even if in the lower part.” Peterson went on to say, “Notably, views of current labor market conditions fell for the first time since September, while assessments of business conditions weakened for the second month in a row. Meanwhile, consumers were also less optimistic about future business conditions and, to a lesser extent, income.” Reduced consumer confidence could weaken demand for goods sold by office supply and stationery stores.
- Office supply retail firm ODP Corporation (Office Depot and OfficeMax) recently reported third-quarter 2024 sales of $1.8 billion, down 11% compared to Q3 2023. The firm said the drop in sales was primarily due to its Office Depot consumer business, which had 53 fewer locations than during the same reporting period in 2023. The Office Depot division also experienced fewer transactions, and sales in the company’s ODP Business Solutions division were down compared to Q3 2023. ODP posted a net income of $68 million in Q3 2024, down from a gain of $82 million in Q3 2023. For its full-year fiscal 2024 guidance, ODP expects sales of about $7 billion.
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