SIC 5112 Stationery and Office Supplies

SIC 5112

This entry includes establishments primarily engaged in the wholesale distribution of stationery and office supplies, including computer and photocopy supplies, envelopes, typewriter paper, file cards and folders, pens, pencils, social stationery, greeting cards, carbon paper, business forms, loose leaf binders, and inked ribbons.

NAICS CODE(S)

453210

Office Supplies and Stationery Stores

422120

Stationery and Office Supplies Wholesalers

INDUSTRY SNAPSHOT

In 2003, D&B Sales & Marketing Solutions reported 10,262 establishments primarily engaged in the wholesale distribution of stationery and office supplies. Their combined sales were approximately $52.2 billion, with the average business generating $6.40 million in sales. The industry employed some 109,745 employees. However, these figures were down from just two years before when the U.S. Census Bureau reported 7,323 establishments, as well as 123,458 employees. The majority of establishments were small employing less than five people. California, Florida, Illinois, New Jersey, New York, Ohio, Pennsylvania, and Texas controlled more than half of the overall market.

Although the stationery and school supplies wholesalers have seen an increase in demand, the demand for business office paper had been in a slump for the past couple of years. With the softened economy followed by the September 11, 2001 attacks on the World Trade Center, businesses were scaling back. The stationery and school supplies wholesalers shared 60.3 percent of the market for 2002, or $13.5 billion in 2002. The industry remained highly fragmented with five of the leading suppliers controlling 31.3 percent of the overall market.

ORGANIZATION AND STRUCTURE

Traditionally, wholesalers buy merchandise from a manufacturer and resell it at a profit to other wholesalers, retailers, or industrial and commercial customers. To compete with wholesalers, superstores such as Office Max, Staples and Office Depot provide small businesses, and the distributors who supply those dealers, with similar merchandise for lower prices. As competition for smaller businesses intensified, larger distributors began focusing more on commercial accounts. For example, United Stationers targets commercial accounts with $5 million or more in annual revenue, servicing industry office complexes of 50 or more employees. Unisource Worldwide also reports success in attracting and retaining regional and national accounts. In fiscal 1995, these key customers contributed more than $600 million to Unisource revenues.

Wholesale distributors have also tried coordinating their efforts with the superstores rather than trying to compete with them. United Stationers began testing a distribution system with the largest office supplies superstore, Office Depot. United received products from 10 different manufacturers at its Atlanta distribution center, and then within 24 to 36 hours shipped the merchandise to 31 Office Depot stores in the southern United States. United also performed this service for smaller dealers and...