Mass merchandisers to lead paper supply?

4 January 2007 — Weymouth (MA): Mass merchandisers are expected to gain more market share as a source for paper, while paper merchants, office superstores and contract stationer divisions will remain power houses for moving paper, according to industry analysts.

InfoTrends’ latest report suggests that general merchandise stores and mass merchandisers will increase the amount of paper that they sell due to the sheer number of stores and the convenience of being able to purchase paper along with other goods.

 

The research suggests that the internet is the only channel expected to show double-digit growth in terms of cut size tons distribution between 2005 and 2010.

 

InfoTrends also draws attention to the way in which quick printers have emerged as a source of cut size paper. As a complement to their traditional business, quick printers including FedEx/Kinkos are emphasising their ability to capture supplies business at retail and online due to their number of store locations and access to product. Staples is also opening stand-alone quick printer locations that stock a limited number of office products SKUs including paper.

 

Cathy Martin, an InfoTrends consultant, said: "Cut size paper is a low margin, high volume market which is very competitive and price sensitive. Heavy cartons of paper can be expensive to move efficiently, and this has forced channels such as office machine dealers, forms distributors and manufacturers, and small storefronts to reconsider their roles in selling paper."