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
Oct 8, 2024 - Printing-Writing Paper Shipments Rise
- Total US printing-writing (P-W) paper shipments increased by 4% in August compared to the same month in 2023, according to the American Forest & Paper Association (AFPA). However, shipments of the three major grades of P-W paper were mixed. Coated free sheet shipments rose 16%, uncoated free sheet was down 1%, and mechanical shipments increased 17%. Total US P-W paper shipments in August were down 4% compared to July. Manufacturer printing and writing paper shipments are a key demand indicator for office supply and stationery stores.
- Holiday spending in 2024 is expected to top last year by 7%, according to a recent report by PwC. The average consumer is forecast to spend $1,638 on holiday purchases. However, even as inflation has moderated, shoppers remain price sensitive, as 59% of consumers surveyed said inflation is likely to affect their budget, and 57% reported that their finances were pressured. About 30% of consumers said they plan to spend less this holiday season than last year, while 25% say they will spend more. Generationally, Millennials will be the biggest spenders this year, with an average per-person outlay of $2,222, followed by Gen Z ($1,752), Gen X ($1,454), and baby boomers ($1,126).
- In September, Amazon’s CEO announced that starting January 2, 2025, the company’s corporate staff would have to return to the office full time, according to The Wall Street Journal. Since the end of the pandemic, hybrid work models have persisted, often due to management concerns that top performers might leave if they were required to spend more time in the office. However, as the labor market has tightened, the balance of power has shifted to favor employers, and some are eager to use their upper hand to require five days of in-office work. However, over the last year, the number of companies requiring five days in the office has fallen by 15%, according to Flex Index, which tracks the work policies of about 6,300 firms. A recent survey of CEOs by KMPG showed that 80% expect corporate employees to return to the office five days per week within three years. More firms returning to five-day in-office schedules could boost demand for office supplies and stationery stores.
- Office supply retail firm ODP Corporation (Office Depot and OfficeMax) recently reported second-quarter 2024 sales of $1.7 billion, down 10% compared to Q2 2023. The firm said the drop in sales was primarily due to its Office Depot consumer business, which had 58 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 Q2 2023. ODP posted a net income of $4 million in Q2 2024, down from a gain of $43 million in Q2 2023. For its full-year fiscal 2024 guidance, ODP expects sales of at least $7 billion.
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