Take notes: Digitalization and external competition will prevent industry growth

Although the recession accelerated the Office Supply Stores industry's decline, industry operators have long been under pressure from the changing digital landscape and fierce external competition from discount stores, supercenters, warehouse clubs and online retailers. Discount and online retailers are able to offer lower prices, made possible by cost savings achieved through bulk purchasing and low overhead costs. The growing popularity of these retailers has put high price pressure on office supply stores, contributing to a decline in profitability during the past decade. To remain competitive amid changing conditions, the industry has experienced intense consolidation in recent years...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • The growing popularity of discount and online retailers has put high price pressure on office supply stores
  • Many industry players have merged, been acquired or even exited the industry entirely
  • Decreased demand for office supplies from brick-and-mortar establishments will likely hasten the industry’s decline
  • Industry Report - Industry Key Buyers Chapter

    The Office Supply Stores industry exhibits a high level of market concentration, with the two largest players in the industry (Staples and Office Depot Inc.) expected to account for about 80.9% of total revenue in 2017. With the recent merger of Office Depot and OfficeMax under the newly renamed Office Depot Inc., the two largest industry players account for more than three-quarters of industry revenue. While the industry remains highly concentrated at the top, the remainder of the industry is highly fragmented. In fact, an estimated 63.8% of the 7,355 operators in this industry are nonemployers, which are stores without hired employees. Even among businesses that do employ workers, about 63.0% of all stores are expected to have fewer than five workers, while only 6.1% h...purchase to read more.

    Additional Insights for the Office Supply Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Office Supply Stores Industry are

  • Attractive product presentation
  • Experienced work force
  • Production of goods currently favored by the market
  • IBISWorld analysts also discuss how external factors such as External competition for the Office Supply Stores industry and Percentage of services conducted online in the Office Supply Stores industry impact industry performance..

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    What's in this report

    What is the Office Supply Stores Industry?

    This industry includes stores that primarily sell stationery, school supplies and office supplies. Stores may also sell a combination of new computers, office equipment, furniture and supplies. This industry does not include general merchandisers or electronic retailers.

    Industry Products
  • Office supplies and equipment
  • Services
  • Office machines
  • Office furniture
  • Technology
  • Industry Activities
  • Retailing office supplies
  • Retailing school supplies
  • Retailing stationery
  • Retailing furniture
  • Retailing computers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • External competition for the Office Supply Stores industry
  • Percentage of services conducted online
  • Corporate profit
  • Per capita disposable income
  • Number of K-12 students

  • Current Performance
  • Competition undermines specialty stores
  • Operators grapple with the decline
  • Big players scale down, small players bulk up
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic improvements unable to forestall the internet threat
  • External competition corners existing operators
  • Table: Office Supply Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Office Supply Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Human Resources & Benefits Administration
  • Community Colleges
  • Business Certification & IT Schools
  • Public Schools
  • Private Schools
  • Colleges & Universities
  • For-Profit Universities

  • Key Selling Industries
  • Art & Office Supply Manufacturing
  • Copier & Office Equipment Wholesaling
  • Office Furniture Manufacturing
  • Office Stationery Manufacturing
  • Office Stationery Wholesaling
  • Paper Product Manufacturing
  • Sanitary Paper Product Manufacturing

  • Products & Services
  • Office supplies and equipment
  • Office machines
  • Technology
  • Services
  • Office furniture
  • Chart: Office Supply Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Small businesses
  • Households for education purposes
  • Large businesses
  • Households for general purposes
  • Other
  • Households for satellite work
  • Federal, state and local government
  • Chart: Major Market Segmentation for the Office Supply Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Office Supply Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Office Supply Stores Industry

  • Industry Globalization
    Office Depot Inc., Staples Inc.,
  • Table: Office Depot Inc. - financial performance
  • Table: Staples Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Office Supply Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Office Supply Stores Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Percentage of services conducted online (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A retail store that is differentiated by its sheer size and large range of specialized products.
  • Brick-And-Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • E-Commerce
  • A retailer that primarily sells goods and services via the internet. Many of these companies do not have brick-and-mortar locations.
  • Point-Of-Sale (Pos) System
  • A terminal or, more generally, the hardware and software used for checkouts; the equivalent of an electronic cash register.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Office Supply Stores is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Office Supply Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Office Supply Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Office Supply Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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