Staples Owns the Office

As the market wobbles, Staples (NASDAQ: SPLS) is thriving.  Monthly consumer spending at Staples is up 13% for the year. The average customer spent $78.94 in October 2008 up from $69.86 per visit in January 2008, according to data from the new Main Street Spending Index (MSSI) compiled by Geezeo. 

By comparison, office retail competitors Office Depot (NSYE: ODP) and Office Max (NYSE:OMX) did not share the stable growth enjoyed at Staples. 

Although Office Depot showed a healthy spike in sales in March 2008,  it is the biggest loser. Spending at Office Depot is down 15% from an average of $66.76 in January 2008 to $56.83 in October 2008. 

OfficeMax was also down just over 5% from $51.93 spent per average user in January 2008 to $49.26 in October 2008. These stats are also from Geezeo’s MSSI. 

It’s also worth noting how much more people are spending at Staples compared to its competitors. With the average Staples customer spending $78.94, Staples customers are spending 40% more per month than Office Depot customers ($56.83) and 60% more than OfficeMax customers ($49.26).

Clearly people choose Staples first when purchasing office supplies. Staples could easily retain their lead in an economy where more people are setting up home offices and single-proprietor businesses. Staples is likely to see continued growth in the near future. Can OfficeMax or Office Depot catch up?

Disclosure: no positions

Comments

[Mowog:]

And reason why I've bought more of it recently.

2008 Nov 13 08:47 AM