Office Supply Stores Struggle to Stay Relevant

Some forms of retail work better in a brick-and-mortar store than they do online, particularly when it comes to clothing and footwear. However, items that don’t need to be held, touched, or tried on thrive in the digital space. Office supply stores, which include Office Depot and Staples, have been particularly vulnerable to this shift.

The office supply sector employs around 60,000 people and generates $10.3 billion in revenue in the United States annually. However, this figure is projected to decline by approximately 2% each year through 2026, according to research firm IBISWorld. This decline has led to Office Depot closing over half of its stores since 2013.

When Office Depot merged with Office Max in 2013, the combined chain operated approximately 1,900 U.S. stores. At the time, the two companies planned to close around 400 stores. The industry was already experiencing a decline, with consumers increasingly opting to buy office supplies online from Amazon, drugstores, or mass merchants.