Office products suppliers and retailers see weaker sales than expected
With the office supply market softening, it’s advantage: buyers
By Maria Varmazis -- Purchasing, 11/27/2007 2:11:00 PM
Office product manufacturer Newell Rubbermaid, which makes Rolodexes and Sharpie markers among other items, recently announced that a slowing office product market has hurt its fourth quarter sales, which were “essentially flat” when compared to the previous year. The company pointed to some office retailers reducing inventory to cut costs, a major concern especially as some major office retailers such as Office Depot and Corporate Express have seen slowdowns in sales, especially in the second half of the year.
Analyst Dan Binder at Jefferies & Co believes minimal job growth and the national housing crunch have all contributed to a weaker office product market. “With credit drying up and housing collapsing, you probably have some tie-in with small business spending,” he says.
This could give office product buyers an advantage in some contract negotiations; however, the picture is not entirely bleak for office retailers, as today Staples announced better-than-expected earnings despite slowdowns in sales.
Office Technologies Business Intelligence
12/11/2008Office Briefs
01/16/2008Office Briefs
04/08/2009
Now Playing: 
