Stationery business goes to the office - discount store sales of stationery and office supplies

Discount Store News, May 22, 1989 by Faye Brookman

Sando at 3M cites Post-It Brand Notes as a prime example of a hot item that really sizzles as a multiple pack. The Post-Its are grouped in packs of anywhere from three to 24. According to John Cincotta, director of marketing for Sheaffer Eaton, the multiple pack frenzy has hit the writing instrument portion of the business, too.

The benefit of multiple packs, retailers add, is enhanced profits. They assume about the same amount of space as a single pack, but multiple packs carry a higher price tag. That is good news to an already profitable area with home office goods yielding margins in the 25 percent to 30 percent range.

Discounters are also squeezing greater profits out of the category by upgrading the mix. Cincotta has observed a willingness of customers to opt for more expensive pens and mechanical pencils (Sheaffer Eaton has products ranging from 99 cents to $500). And Krasnow at Staples said high-end writing items such as Cross Pens are gaining favor as people view them as not only an investment but as a great gift item. Another prime example is Stuart Hall's Executive Line of business pads which includes the Executive Project Planner, a pad with space created for page numbers, subject identification and room to write down follow-up actions. A testament to its success, he said, is that officials at WalMart use the pads in meetings.

Manufacturers have injected fashion into the once mundane office supply category with splashy colors. Canary yellow remains the favorite choice of paper, but primary colors have been appearing in paper and Post-It notes have an offshoot by 3M called Creative Expressions with cute sayings and shapes.

With home office consumers buying all these new items and gadgets, it is only logical they need more storage aids. Several suppliers have come to the rescue with upscale offerings.

"The growth in home office is in storage--magazine files, hanging file folders and plastic magazine folders," responded Eric Buresch, national sales manager of Fellowes Manufacturing Company in Itasca, Ill. A few new items the firm is highlighting include a carry-all file, a two-year home file and multiple packs. Buresch said color is important in storage. Over the past few years, jewel tones have predominated, but are being supplanted by black, white and red, he said.

Design-A-Space Line

Rubbermaid Inc., a pioneer in the mass home office arena, has introduced new offerings in its Design-A-Space line. According to Linda Whyte of Rubbermaid, Design-A-Space is an office system that allows consumers to put an office together horizontally or vertically.

The new items include an in/out tray, two new wall pockets, a long-term file and a storage clipboard.

The increase in home offices also means an upturn in home mailing, according to Pat Macko of Cleveland-based Manco Inc., which manufacturers Care Mail and Cookie Box. The firm is also responding to the multiple pack craze by grouping its mailers in combination packs.

Table : Office Products Market Potential