Office Supply Stores in Canada Industry Market Research Report from IBISWorld Has Been Updated

Although the worst appears to be over for now and the outlook is slightly better than the past five years, office supply stores will continue to battle against declining demand for core office products. For these reasons, industry research firm IBISWorld has updated a report on the Office Supply Stores industry in its growing industry report collection.

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Competition from e-commerce websites and discount department stores will hamper industry sales.

New York, NY (PRWEB) January 11, 2014

The Office Supply Stores industry has struggled to adapt to a changing digital landscape over the past five years. Weak consumer confidence, low growth in disposable income and poor corporate profit have all worked against the industry. However, the industry's performance has been largely affected by declining demand for traditional office products; more information and communication functions continue to shift to electronic mediums. “Consumers and businesses require less paper, pens and toner, sounding the death knell for many office supply stores,” according to IBISWorld Industry Analyst Andy Brennan. As a result, industry revenue is expected to decline 2.2% over the five years to 2013 to $2.8 billion. Despite the efforts of operators to diversify their revenue streams, the same trend will continue in 2013, leading to a 2.7% decline in revenue.

The industry, which includes only sales of office supplies made at brick-and-mortar stores and excludes online sales, has been further hampered by intense competition from e-commerce websites like Amazon.com and discount department stores that sell many of the same products at low prices. “Operator profit margins have come under pressure and office supply stores have sought alternative revenue streams other than core office products such as ink, toner and paper,” says Brennan. Tech support services and recycling services have become part of the long-term strategy for survival for many office supply stores. However, even Staples, the industry's biggest player (with a 58.7% market share), has experienced a fall in profit as it struggles to acclimate to the new digital landscape.

Although the worst appears to be over for now and the outlook is slightly better than the past five years, office supply stores will continue to battle against declining demand for core office products. Corporate profit is expected to rise over the next five years, allowing businesses to invest in office technology and equipment, which offers some respite for the industry. Staples and other smaller companies will continue to invest in concepts that allow customers a seamless buying experience across multiple channels. However, the industry is working against a strong tide.

For more information, visit IBISWorld’s Office Supply Stores in Canada industry report page.

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IBISWorld industry Report Key Topics

The Office Supply Stores industry primarily sells 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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


Contact

  • Gavin Smith
    IBISWorld
    +1 (310) 866-5042
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