Demand for stationery products will grow steadily alongside rising disposable incomes
Los Angeles, CA (PRWEB) June 07, 2013
The Retail Market for Stationery Products is composed of retailers (both physical and online) that sell writing materials, envelopes and related products. Demand for these products – and, consequently, the retail market's success – is largely driven by consumers' purchasing power. Over the five years to 2013, per capita disposable income fell for the first time since 1991 as the recession took hold and unemployment skyrocketed to new heights. “With less cash on hand, shoppers cut discretionary purchases like stationery, which ultimately hurt industry performance,” says IBISWorld industry analyst Nikoleta Panteva. In 2009, disposable income fell 3.6%, leading to a 6.4% decline in revenue for the year.
Consumer budgets have since begun to recover and the performance of the Retail Market for Stationery Products has followed suit; revenue is expected to grow 0.5% in 2013 as per capita disposable income increases an estimated 0.8%. “Mounting competition internally and externally, however, has largely defined the industry's past five-year performance,” adds Panteva. “The stationery retail market is slowly reaching its saturation point, with the number of locations selling these products growing at an anemic 0.7% annualized rate from 2008 to 2013.” Additionally, operators face external competition from electronic communication, including e-mail and electronic invitation websites. These conditions have combined to suppress industry growth over the past five years; revenue is expected to decline at an average annual rate of 1.4% to $9.2 billion by the end of 2013. Meanwhile, industry profitability has also remained constrained as retailers engage in price competition to gain customers.
The top four firms operating in the stationery products retail market, including major player Staples Inc., make up just under a third of its revenue. The remainder of the industry is highly fragmented, and includes discount retailers, department stores, and single-location stores both with and without hired employees. In the five years to 2013, industry concentration has been on the rise. Discount stores, warehouse clubs, supercenters and e-commerce websites have had an increasing presence in this retail market by providing convenient shopping experiences as well as low prices. This trend has caused underperforming operators to consolidate or exit the industry; over the five-year period, the total number of enterprises is expected to have declined 0.6%. Competition is forecast to continue over the five years to 2018, likely causing the industry to become more concentrated.
As the economy improves over the five years to 2018, the Retail Market for Stationery Products will also display steady growth. Per capita disposable income is projected to grow, driving an industry revenue increase through 2018. Still, despite this positive outlook, competition will continue to threaten the market. The percentage of services conducted online is anticipated to expand, pulling consumers away from traditional paper correspondence and subduing industry demand. Additionally, the retail market will continue expanding slowly, limiting opportunities available to individual operators. Competitive tactics for retailers will include a heightened focus on customer service, targeting a younger demographic and providing value-added services like customizing stationery products. For more information, visit IBISWorld’s Retail Market for Stationery Products in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry sell stationery products used for writing, drawing, filing and similar applications. Greeting cards and printer paper are excluded from this report. This report discusses the size of the retail market for stationery products and includes sales from all major retail channels, including specialty stores, general merchandisers and internet retailers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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