Office Supplies and Stationery Stores NAICS 459410

Jun 6, 2025 - ODP Corporation Posts Lower First-Quarter Revenue

• Office supply retail firm ODP Corporation (Office Depot and OfficeMax) recently reported first-quarter 2024 sales of $1.7 billion, down 9% compared to Q1 2024. The firm said the drop in sales was primarily due to its Office Depot consumer business, which had 46 fewer locations than during the same reporting period in 2024. The Office Depot division also experienced weaker retail and online consumer traffic. Sales in the company’s ODP Business Solutions division were down 8% compared to Q1 2024. ODP posted a net income loss of $29 million in Q1 2025, down from a gain of $31 million in Q1 2024.
• Office vacancy rates remain persistently high long after the end of the pandemic, and as some firms require workers to spend more time in the office. In US central business districts (CBDs), the national office vacancy rate in April 2025 was 19.2%, according to CommercialEdge. While vacancy rates in urban (outside CBDs) and suburban areas are trending slightly higher than in CBDs, they command higher rents. In April, listing rates for CBDs were 29.8% below pre-pandemic levels. Urban listing rates were only down 20.7% over the same period, and rates in suburban areas increased 6.5%. Office occupancy is a key demand indicator for office supplies.

• Despite the digitalization of everyday life, small stationery stores are thriving by offering unique tactile experiences, according to Retail Dive. While larger brands – including Papyrus and Paper Source – have struggled, local shops have built loyal followings by offering hyper-personalization, workshops, limited-edition collaborations, community engagement, and locally sourced products. Papyrus closed all its US-based stores during the pandemic but still sells online and through retail partners. Paper Source was bought out of bankruptcy by Barnes & Noble in 2021. Wellness practices that include limited time with screens – such as journaling - have helped drive sales of stationery items. However, many of the higher-quality stationery products are not available from US suppliers and recent increases in tariffs could force stores to raise prices.
• Sweeping new tariff policies implemented by the Trump administration could increase paper costs for office supply and stationery stores, disrupt supply chains, or both. In a March press release, the American Forest & Paper Association (AFPA) suggested that trade strife could disrupt North America’s complex paper product supply chains. AFPA President and CEO Heidi Block said, “Pulp and paper mills are strategically located across the United States to efficiently and sustainably create essential products for everyday use. From turning wood chips into pulp, pulp into base stock, and then transforming that raw material into a product that is then packaged for distribution, our industry’s manufacturing process involves many stages that can each happen at different facilities on both sides of the border.” During earnings calls in February, several paper companies – including Cascades, Clearwater Paper, and Smurfit Westrock – expressed concerns about escalating US-Canada trade tensions, according to Packaging Dive.