Analytical Reports on Office Depot Inc. and OfficeMax Inc. - Office Supply Stores Continue to Face an Uphill Battle
August 29 2011 - 8:30AM
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Times have been difficult for many companies in the Office
Supplies industry, so much so that these days good news can
sometimes be measured in less than expected quarterly losses.
Companies in the sector like Office Depot Inc. and Office Max Inc.
both reported lower quarterly losses than analysts had thought,
leading many to hope that the sector may begin to bounce back.
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There still may be significant challenges ahead for companies in
this sector though. The important back to school shopping season
has been softer than hoped with the weak economy, high joblessness
and higher fuel and food prices. With consumers looking to save
money on back to school items wherever they can, many are passing
up on office supply stores to shop for deals at drugstores, dollar
stores and even online.
Some office supply stores are responding by offering deep
discounts on school supplies, hoping to get customers in door. Some
office supply stores are also facing higher commodities costs and
inflation, and while raising prices does not seem to be an option,
customer service job cuts may be coming to protect margins.
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