Office Overview By Louise Howarth Retail Analyst June 2012 A Service Office Overview Louise Howarth Retail Analyst [email protected] This report looks at the office supplies retail sector, analysing the market and outlining current and future trends affecting the office specialists. 2 All images ©Planet Retail Ltd unless otherwise stated. Contents 1. Sector Overview 2. Key Trends 3. Summary 3 4 X 1 Sector Overview Staples is by far the largest of the top three office specialists in terms of sales and global market share. Staples’ retail banner sales (RBS) has grown since 2007, boosted by acquisition in new markets: India, Australia, New Zealand, Norway, Finland, Greece, Ireland and Mexico. Whereas, Office Depot and OfficeMax RBS’ have fallen, impacted by the global economic downturn in 2008. There is a huge disparity between the top three specialists’ net profit over the last five years. Both Office Depot and OfficeMax were drastically impacted by the economic crisis of 2008. However, during, as well as pre and post-recession, Staples has displayed a much healthier net profit score. Global: Net Profit, 2007e-2011e (USD mn) Global: Retail Banner Sales, 2007e-2011e (USD bn) 1,500 2007e 2011e 25.0 21 20.0 16 15.0 9 10.0 1,000 500 0 2007 2008 2009 2010 2011 -500 -1,000 Staples 5.0 -1,500 0.0 -2,000 Office Depot Staples Note: e - estimate Source: Planet Retail 5 Net Profit (USD mn) Retail Banner Sales (USD bn) 30.0 Office Depot OfficeMax Note: e - estimate Source: Planet Retail