Office Supply Stores
Companies in this industry sell a wide range of office supplies, equipment, and furniture to businesses and consumers and may perform some business services. Major companies include Office Depot and Staples (both based in the US); Lyreco and Manutan (both in France); Officeworks (Australia); OTTO Office and Pelikan (both based in Germany); and Ryman (UK).
The global office supplies market is projected to exceed $149.4 billion by 2028, according to Fortune Busineess Insights. Asia/Pacific dominates the market with countries having a high demand in China, Japan, and India, among other countries. Growth in the global market is driven by rising school enrollments and literacy rates, and an increase in the number of corporate and home offices.
The US office supply stores industry includes about 5,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $12 billion.
Competitive Landscape
Demand is driven by the level of business activity. The profitability of individual companies depends on effective merchandising, pricing, and an efficient distribution model. Large companies have economies of scale in purchasing and the ability to stock wider ranges of products. Small companies can compete by providing superior customer service and by offering specialty items. The US industry is highly concentrated: the 50 largest companies account for about 85% of industry revenue.
The ongoing decline in general office supplies sales, driven by the transition from print to digital communications and heightened competition from alternative retail channels, has led major office products retailers to shutter stores and seek to?consolidate. Office Depot bought OfficeMax in 2013 to better compete against market leader Staples. Two years later Staples made a bid to acquire Office Depot, but the deal was ultimately called off amid scrutiny by antitrust regulators. Meanwhile,?nontraditional competitors, including Amazon, Walmart, Target, Best Buy, and Costco, have been increasing their presence in office supplies, siphoning sales from specialty office products stores.
Some office products retailers have turned to adjacent categories like maintenance, repair, and business services such as copy, print, and design services to replace lost revenue. In 2018 the company launched Workonomy (a successor to its in-store business services format BizBox), a business platform aimed at small and medium businesses that offers tools and remote and in-person access to advisers and tech support. The company also opened its first co-working space, located in one of its retail locations in Silicon Valley.
Products, Operations & Technology
Major product categories include office, school, and packaging supplies (more than 60% of revenue); office equipment and furniture (about 10%); computers
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