Over the history of office superstores, the channel has continuously searched for the next revenue-generating avenue to bring office products to the world. At first, retail locations generated a flurry of activity to put stores in the best markets. As competition for real estate became fierce, superstores looked to other opportunities, including catalogs, delivery, contract sales, and the Internet to increase revenues. These avenues are also becoming exhausted, however, so the superstores must find new ways to expand their businesses.

CAP Ventures’ White Paper entitled Office Supply Superstores: Grocery Stores for Supplies takes an in-depth look at the superstore channel, examining new trends and developments in the industry. The report focuses on the three major players: Staples, OfficeMax, and Office Depot.

Important findings of the White Paper include:

• Office superstores are placing great investments in markets outside of the United States and Canada, particularly in Europe. Nevertheless, the fruits of their labors will not be realized for a few years until the businesses are firmly established and the costs of launching these businesses have been recouped.     
• Competition among the superstores in various markets across all business segments continues to be a major factor. This competition results in pressure on pricing, product selection, and services provided. To remain present in their customers’ buying decisions, superstores have greatly expanded their private label or house brand of supplies. Many of them have placed greater emphasis on the frequently used and purchased inkjet and toner cartridges.     
• Superstores are also facing increased competition from mass merchandisers and wholesale clubs. These retailers have increased their office products offerings to attract home users.

“In many ways, the office superstore business can be compared to food supermarkets,” commented Cathy Martin, an Associate Consultant at CAP Ventures. “Some stores are closed and new ones are built, but there is an ever-present need for these businesses and this need will remain. Over time, the look and feel of these channels changes to better serve their customers and business, and the business continues to be successful.”

The complete report is available immediately to clients of CAP Ventures’ North American Communication Supplies Consulting Service. For more information on the white paper or to make a purchase, please contact Alison Hipp at , ext. 126 or via e-mail at . 

CAP Ventures’ Communication Supplies Consulting Service provides executives and senior managers with information and advice relating to supplies used by a wide range of electronic imaging devices, including copiers, digital printers, fax machines, and multifunction devices.