Contributing Member of the Consumer Goods & Services Councils

GLG News by this Author

GLG News is now G+ Insights

G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.

STAPLES Taps Lucrative Customer Base-The Back To School Teen

July 24, 2006

Analysis of:Get "Geared 4 School" Hollywood Style With Ashley Tinsdale and Staples | www.investor.staples.com

Capitalizing on a consumer segment that can bring in a windfall of potential revenue in the 2nd and 3rd Quarters, Staples has once again proven that it is the clear leader when it comes to strategic thinking. Given the fact that BTS has become the second most popular shopping period of the year following only Christmas, and that the season runs almost 3.5 months, there is much to gain in a marketing effort geared at capturing the attention of the student population.

On July 17th, Staples announced the promotional launch of its upcoming BTS season with a compelling contest that is sure to grab the attention of the teen shopper. Staples has teamed up with one of the hottest teen stars from the Disney Channel, Ashley Tinsdale, for a promotion that will not only offer daily/weekly prizes of "hot" BTS product, but ultimately, will offer one lucky winner a trip to Hollywood and a $10,000 shopping spree with Ashley.

The implications that make this a very smart marketing initiative:
1.)The items on the "must have" school lists of teens tend to sell at higher price points--great news for elevated comp.
2.)The economy, particularly the impact of gas prices, will be a boon to retailers carrying deep assortments of Private Label goods to help ease the burden of what it costs to "get there."
3.)Today's student is tech savvy--they want laptops, cell phones, Blackberry devices and MP3 players and will spend whatever it takes.
4.)Today's student is extremely fashion conscious--colors, designs and trends are extremely important to their buying decision.
5.)The average "off to college" student will spend up to $3500 for technology, furniture and supplies that will furnish the dorm.

Is The Luster of COMP Fading For Analysts?

July 13, 2006

Analysis of:What, No Comps? | www.chainstoreage.com

Since the 1970's when I began my retail career, almost every facet of doing business has changed with mega chains and megastores now proliferating the landscape and replacing regional chains like Hill's, Bradley's, Rose's and Ames. The "old world" retail I cut my teeth on was dominated primarily by price, selection and the "stack it high, let it fly", concept of merchandising. One thing, however, that was drilled into me from the beginning was the vast importance and ultimate goal of driving same store sales year. That measurement, of course, was COMP, and if I heard it once, I heard it a million times, that in the world of 70's retailing, this number was the sought after driving goal year after year. Fast forwarding 30 years and breaking from this time honored tradition, Home Depot announced in May that it would be the first major retailer to withhold sales data for stores open at least one year. While the announcement quickly came under fire from some analysts, investors and even veteran retailers like me, certainly times have changed in how the overall health of a company is to be measured in this millennium. Consider the questions that arise from Home Depot's decision:
1.)If more and more retailers choose to follow this same path, will the need for a "replacement" metric arise, and if so, what should that measurement be?
2.)What are the most relevant factors affecting comps today and how do they differ from those of the 70's?
3.)What role does advertising/marketing play in affecting comps and what is the true ROI after production, insertion, and delivery of a flyer? What is the Gross Margin impact of running highly promotional items at highly promotional price points?

"I Think It's Green, I Seen, I Mean"

July 13, 2006

Analysis of:Staples Ponders Tapping Wind Power..Proposes Turbine In Framingham | www.boston.com

At the risk of scorn from the readership and realizing that the title of this article is a crude takeoff of a Dr.Suess children's book, I felt that grabbing attention as well as providing a segue' into the original article, was nonetheless, appropriate. Many retailers are beginning to take a serious look at controlling energy costs as the retail market continues to grow and Sr.Management at every company faces tremendous pressure to grow bottom lines in the face of energy, store construction, material, labor and margin pressures. In the OSS sector, Staples becomes the first to announce the development of capturing wind power to generate 10-15% of the energy needed to power its corporate HQ in Framingham, MA. The key implications of a venture such as this one could not only have far reaching benefits for Staples, but would also appear to have merit for future facilities planning and a measure of control over energy costs for all retailers going forward.. As the initial steps in planning move forward for Staples, the short term and future benefits become clear:
1.)Control over escalating energy costs which already are spiraling upward and apt to get worse before better.
2.)A solid brand fortification message to the local community that Staples wants to be a partner and part of the solution of cleaner air.
3.)Reduction of carbon emmissions into the atmosphere.
4.)A 10-15% reduction in the kwh usage Staples is currently paying to the local utility company.
5.)Long term cost savings of dollars spent on energy(after depreciation and amortization occurs and offsets initial capitalization funding) by becoming less dependent on local energy suppliers and susceptibility to inevitable future rate escalations.

STAPLES Gears Up Students For Less Than A Gallon of Gas

July 12, 2006

Analysis of:As Gas Prices Rise, Back-To-School Prices Fall At Staples | www.investor.staples.com

Despite the fact that most students have been on summer vacation for just a little over a month, Staples has fired the first salvo in the OSS segment to capture early presence and market share for the 2006 school term. In an interesting twist playing off the current national average for a gallon of gas, Staples inserted a flyer in the Sunday ,July 9th edition of newspapers across the USA. Offering several core items at ridiculously low prices(2 pocket portfolios, 12 count pencils, manual pencil sharpeners at 1 cent) as well as several other commodity items from .20 to $1.49. The hook is that if a minimum of one of each of the advertised items is purchased, the sale total will be less than $2.91, national average for a gallon of gas. Staples hopes to "tease" the early shopper into yet another EASY brand fortifier,i.e., BTS price and selection. What Staples has to gain from this is:
1.)The earliest message in the OSS sector that they are concerned with both gas prices as well as the cost of outfitting students for BTS'06.
2.)Early lead in market share and the opportunity for both repeat as well as incremental business as school start dates draw nearer for most schools in late August.
3.)An opportunity to show off selection/assortment earlier than competition with door busters as an enticement to browse.
4.)Gross margin gains that will come later when the "must have" items on school lists are purchased.
5.)The "connection with students" opportunity and the chance to establish another demographic to their already great relationship with consumers and small business. 

Lexmark Offers Technology Innovation In An Attempt To Gain Share

July 7, 2006

Analysis of:File, Print, Frustration:Lexmark Survey Says Web Has Great Info, But It's A Pain To Get It To Go | www.lexmark.com

Within the formidable competitive environment for unit sales growth in the inkjet and laserjet printer segment, Lexmark has recently announced entry into technology, that if Marketed and promoted correctly, could have great potential upside for them as they retrench and vie for market share against the likes of HP, Canon and Epson. In a press release dated 6/29, Lexmark has announced the development of a program they call TOOLBAR*, a quick and easy download for users of its printers. Added to this is the advantage that the download is free for end users of its products coupled with the following upside implications:
1.)This program offers savings of both money and time for frequent users of the Web who currently print  hard copy. There is upside to both consumers and small business in controlling both the cost and frequency of purchasing consumables.
2.)A viable branding and marketing tool for Lexmark to gain share.
3.)Support for the2006 business plan at Lexmark that already addresses the need for them to be innovative.
4.)A vehicle for them to increase unit sales of higher end inkjet and laserjet technology, vital to their future success.

OfficeMax Is on The Move-Turnaround Plan Continues to Deliver

July 6, 2006

Analysis of:OfficeMax Strengthens Puerto Rico Operations With New Distribution Center | www.officemax.mediaroom.com

In yet another move geared at creating operating efficiencies while reducing the cost of doing business in its retail stores, OfficeMax has announced the October 2006 opening of a new 100,000 sq.ft. Distribution Center in Puerto Rico. The Puerto Rico market, long considered a jewel in the crown of topline sales, same store sales, revenue and profitability for OfficeMax will now more positively benefit from the impact this DC will have on supply chain efficiency, cost of goods, enhanced instocks to better serve the customer, more responsive delivery times and potential growth of small to midsize businesses that this decision brings with it. Currently, OfficeMax has the smallest Retail Division Operating Margin of any of the 3 majors. By comparison, OfficeMax is at a .61% against Staples at 9% and Office Depot at 4.9%.

Key Implications:
1.)Protection of a key market that operates with more freedom from competition than in most of its domestic markets.
2.)Better instocks across the 10 existing Puerto Rico locations.
3.)Reduction in cost of goods sold and the corresponding lift to gross margins.
4.)Broader selection of products as well as a focus on the core 5000 items that businesses and customers most often purchase in this market.
5.)Positive impact on its business to business sales and fulfillment base.
6.)A significant benefit of adding product sourced from local providers geared to meet legal, governmental and regulatory requirements in Puerto Rico.
7.)Additional warehouse space will allow for the expansion of Print and Document Services division, a potential 70%+ gross margin business.
8.)The potential to keep out the competition in both the short and long term. 

SONY's PS3 Launch-Victory or Another Public Relations Nightmare?

June 29, 2006

Analysis of:PS3 | www.ps3portal.com

The month of June means the kids are fresh out of school and the first days of the long, hot summer have just begun. To manufacturers and retailers, June is just a stone's throw away from the vital holiday selling period and already, the talk of what all good children(particularly the geeky ones) swirls around the launch of the next generation in gaming, SONY's PS3. As the excitement and anticipation builds for the tentative mid-November launch in the US, the rumor mill is already grinding from the painful memories of the PS2 launch.

SONY is too big and too smart to re-live the painful lessons history has taught them about the Laws of Supply and Demand and can ill afford for history to once again repeat itself.  With rumors circulating such as problems with Blu-ray reader and cell processor technology(which has already canceled the Spring launch in Japan and moved it to the global launch in November),  SONY undoubtedly finds itself between the proverbial rock and a hard place. The implications of further delaying the launch beyond November and post Holiday are obvious:
1.) SONY would basically hand over tremendous revenues and market share to the good folks at Microsoft who make XBOX and miss the entire Holiday '06 season.
2.)SONY would once again, disappoint customers at Christmas and create yet another PR nightmare.
On the flip side, not launching pre-Holiday '06 sets up these implications, which perhaps, are even worse:
1). Rushing to market and either producing an inferior, prone to defects product will put SONY's credibility at stake.
2.)Manufacturing shortages or higher than expected demand would produce very similar ill will to the PS2 launch that still stings.

$400 Billion in Office Supplies Ready For Harvest-Are OD,SPLS, and OMAX Prepared To Pick?

June 29, 2006

Analysis of:Office Industry Outlook Reveals Considerable Growth Prospects | www.dsnretailingtoday.com

It's the year of the customer and all 3 major players in the OSS sector are poised to differentiate and gain market share at the expense of one another. Consolidated earnings for the three in Q1 speaks volumes about commitments to store productivity, customer centricity, cost efficiencies, new innovation, supply chain and E -commerce enhancements, and most significantly, greater earnings and ROI. Even OfficeMax, whose Financial plan is termed a "turnaround plan" vs a business plan surprised analysts and Wall Street alike with its stronger than anticipated revenues. As the sector evolves, retail store sales represent less than half of the total topline sales at Staples, Office Depot and OfficeMax combined, leaving ample opportunity for all to accelerate revenues in E-commerce, contract, and in the case of Staples and Office Depot, expansion and development of Europe and Asia as viable business opportunities arise.

Continued development of Private Label will also provide significant upside to all three in terms of Brand, appeal to small and midsize business, and the obvious lift to Gross Margins and net operating incomes.

To shore up the outlook for considerable growth, all three have:
1.)Advantages in Brand image already in place through Marketing and existing Private Label assortments plus retail store counts. Collectively, the Big 3 have 3500 stores.
2.)Lucrative contract and E-commerce businesses. All showed strong Q1 comps in Contract.
3.)A fragmented industry in which they compete offering ample opportunity for growth of market share and brick and mortar expansion. 
4.)Assortment selection, great instocks, knowledgeable associates, and solid Real Estate on whole.

Staples and Office Depot-The Hunt For Global Dominance Presses On in Asia

June 27, 2006

Analysis of:Staples. Inc.Enters the Taiwan Office Products Market.... | www.investor.staples.com

For the second time this year, a leading Office Supply player has entered the Asian market. This past February, Office Depot announced that it had acquired controlling interest in Best Office Company, LTD, a leading office supply retailer in South Korea. This time around, it was Staples turn to announce a joint venture with UB Express, a leading office supply delivery business in Taiwan. Although Staples did not place a value on the potential for revenue and profit, they did make it extremely clear that the agreement would establish a platform for them to enter the Taiwanese office products marketplace, estimated to be $2.5 billion annually.
 One aspect of both deals, however, is that each of the two largest OSS players plan to utilize these opportunities to expand their global presence in emerging Asian markets. Additionally, several upside opportunities arise from these deals:
1.)Understanding different international economies, demographics, marketing and consumer and small business purchasing traits will ultimately help them better understand their core markets in North America.
2.)The opportunity to not only sell more high margin Private Label products, but the additional opportunity to continually develop new Private brand product lines, many of which come from Asia. UB Office is already the largest furniture manufacturer in Asia.
3.)Growing the Brand image and increasing share.
4.)Creating new synergies that drive topline sales and profits by merging strengths of business management between all 4 companies.

Retailers Challenged By Volatility In Energy Markets and Rising Prices

June 20, 2006

Analysis of:Cleaner, Greener Power | www.chainstoreage.com

Pathmark Stores are moving to solar power to save energy and protect the environment. Photovoltaic(PV) systems are being installed on the roof of stores in 3 New Jersey locations. This may sound a bit like a chapter from a science fiction novel, but in the not too distant past, the best a Retailer could do to attempt to control the cost of energy and natural resource usage was to install devices like timers, flush control valves, and high efficient fluorescent tubes. However, technology advancements in the past 12 years are only the beginning of what is to come in terms of facilities management, controlling costs, and being viewed as an environmentally conscious retailer by the customer base.  

BJ's Wholesale Club has also embarked on a chainwide program to purchase their energy from clean resources and announced a partnership with Sun Power Electric where BJ's donates its roof space in exchange for paying discounted rates for electricity. BJ's currently has 12 locations in the Northeast with rooftop solar units.

The face of today's retail is rapidly changing and top management must continually look for ways to increase operating efficiencies, differentiate, be known as solid, "green" citizens within the markets and demographics they serve and create value for shareholders by investing in long term solutions that provide continual profitability. Looking to PV systems for part of the solution to control the third highest operating expense behind payroll and rent makes sense and will provide a much quicker ROI than in the past due to the volatility of energy markets and spiraling costs facing Facilities Management in all retail formats.

Is Private Label in the OSS Channel Wreaking Havoc in US Suppliers?

June 13, 2006

Analysis of:Avery Dennison Reports First Quarter 2006 Results | www.averydennison.com

Although the overall results of business operations at Avery Dennison appear to be healthy, there are several underlying factors that lead the writer to believe that going forward, sales to the OSS players will continue to weaken. Within the segment highlights, Office and Consumer Products declined 7% in Q1 2006 coming off of an 11% decline in the segment in Q4 2005. Although none of the verbiage in the Earnings release speaks directly to the declines in orders to companies like Staples, OfficeMax and Office Depot, reading between the lines of the text may provide the true answers to declines in orders to the Big 3 OSS players as well as what the future has in store for global opportunities, if not in the Office Supply Retailers:
1.)Plant closures and other cost savings initiatives are key strategies now and going forward.
2.)Senior Management speaks often and highly of growth opportunities such as development of RFID technology and emerging markets in Asia, Latin America and Eastern Europe as opposed to North American Retail.
3.)Price changes implemented in Q1 2006 to offset raw material and energy costs also had a positive impact on earnings.
4.)Balanced strategies that create long-term value and topline growth will be vital to success.

In total, this speaks of CEO Dean Scarborough's understanding of the shift in business trends and the need to continually streamline operations, develop new technologies, focus on key strategic growth platforms as well as to look for new markets and new customers as a footprint for the future in building shareholder value. Every supplier that sells to the OSS channel will need to do the same if survival is a top priority. 

HP Digital Imaging Growth--A Primer For Rivals in How to Grow Market Share

June 8, 2006

Analysis of:HP Fuels Imaging and Printing Growth with Expanded Offerings, New Technologies and Customer Wins | www.hp.com

As rival Lexmark continues to reinvent itself and shake its image as the leader in selling "disposable" single function inkjet printers announced in its restructuring strategy earlier this year, HP continues to gain momentum and set the industry pace for development of new products that support the current and future exponential growth in Digital Imaging. Rolling out 100 new products is no small task for any company even one as large and as rich in R/D as HP..however, HP is savvy enough to understand the implications of what even the slightest gain in market share from rivals Epson, Canon and Lexmark can mean in terms of revenue and it does not appear that they are willing to give an inch when it comes to sales of either hardware or more importantly, Consumable supplies that support this channel and protect Operating Profits. Consider these statistics from their Q2 2006 Earnings release:
1.)Imaging and print revenues grew to $6.7 billion, a 5% increase year over year.
2.)Supplies revenue grew 10% year over year.
3.)Operating Profit grew to $1 billion or 15% of total HP revenues in this division.

With those types of financial metrics to protect, preserve, and best case, grow, it is not difficult to understand why HP continues to be on the cutting edge of innovation, development, and marketing.

Lexmark's Cutback of Low End Inkjet Printers Could Be a Boost to HP, Epson and Canon

June 8, 2006

Analysis of:CEO gives Lexmark View | www.topix.net

In keeping true to its word that it would exit the the PC bundle arena(roughly 20% of its inkjet sales), Lexmark moved away from this unprofitable segment earlier in the year. CEO, Paul Curlander   addressed this as well as other cost cutting initiatives at the Sanford C. Bernstein Strategic Decisions Conference in NYC. Although exiting any unprofitable segment of business is the smart thing to do, there are implications based on this decision that have yet to be realized:
1.How will this decision ultimately affect market share?
2.Does this decision put more strain on gaining share in higher priced inkjet and laser printers and create even more intense competition with HP and Canon in these channels?
3.Because this marketing strategy virtually removes Lexmark from the single function printer market, how quickly do they execute a strategy to introduce new technology to replace the lost units/lost revenues?
4.Which of the other printer manufacturers will move the quickest to fill this void?
5.Where does this leave Lexmark at year end? Will it funnel more dollars into its SMB division and perhaps completely move away from the consumer segment completely?

Can "blogs" Become An Innovative Marketing Strategy In Retail?

June 5, 2006

Analysis of:Retailers Use Blogs To Cement Customer Relationships | www.technewsworld.com

As traditional brick and mortar customers become more tech savvy and comfortable with the use of websites for purchasing online, a question begging to be asked is whether or not using a blog to create a more tactical or friendly experience online for the customer is the correct path to follow as a natural offshoot to the Retailers website. The implications of utilizing a blog to generate on-line discussions can be viewed as a vehicle to weave this medium into core Marketing strategies, thereby improving customer loyalty, recognition of brand, and improving sales and profits. It would appear then that creating a blog is a "no-brainer" given the upside opportunities mentioned above that are most likely, key initiatives to every retailer's 2006 Business Plan; however, it is interesting to note that very few retailers are leveraging this opportunity despite the fact that blogs are expanding exponentially. There are several compelling reasons why this might be the case:
1.) Bloggers can more often share criticisms vs compliments and therefore, create more potential harm than good to a retailers image/brand.
2.)Consumers still have a hard time with marketing initiatives that utilize blogs to sell product.
3.)Retailers may not put faith in what the public has to say about their products and service in a "chat room" environment and choose to rely more on how they view themselves internally based on traditional store inspection, financials, and Wall Street views.

So, the question still remains--is it a sound business strategy to consider adding a blog to the traditional website or a gamble at best that opens up a Pandora's Box of negative criticism?

Differentiation Remains A Top Priority in the OSS Channel

June 2, 2006

Analysis of:Office Depot Launches Worklife(TM) Rewards Program | mediarelations.officedepot.com

As the fiscal year presses on in the OSS channel, one strategy stands out as a clear priority for all three players--the need to Differentiate and impact "Brand" as a tool to effectively grow market share through customer loyalty. In the latest attempt to do so at Office Depot, the company announced on May 30th, their new customer loyalty program called Worklife(TM) Reward. Office Depot is attempting to set a new standard for this marketing tool by doing away with limits on cash back and offering its customer base unlimited earnings potential, thereby making their program superior to those at OfficeMax and Staples.

The impact of this initiative will produce several KEY results for Office Depot once implemented. Clear advantages include:
1.Differentiation-additional "perks" for their customer base in the form of bonus rewards(15%) when a minimum of $35 is spent in their Copy, Print and Ship department. Impact here is that Gross Margins in Print Services is roughly 70% vs average of 30-32% "blended" margins across all other supply categories.
3.Double Reward credits-customers who purchase Office Depot brand Ink and toner, will receive double reward credits. This is a particularly key element of the program since Ink and toner produces elevated margins in Private vs OEM brands; Ink and toner sales contribute from 23-25% of annual Topline sales to all three players in the channel; Ink and toner draws repeat traffic due to frequency of consumption(average customer has to replace black and color cartridges 4 times/yr.).
4.Concept-the Worklife initiative was developed through Office Depot's vision to help its customers manage their time and their budgets. (Does this sound a bit like the immensely successful EASY branding message from Staples?)

Office Depot Executes and Commits to the 2006 Business Plan

May 25, 2006

Analysis of:Office Depot Announces the Acquisition of Allied Office Products... | mediarelations.officedepot.com

On May 17th, Office Depot announced that it had acquired the business of privately held Allied Office Products, the country's largest independent dealer of office products and services. Through this acquisition, Office Depot will add over $300 million to its annual revenues, but more significantly, will accomplish the following:
1.Add pressure in the Northeast and vie for greater market share in a core STAPLES region.
2.Enhance its opportunity to grow the penetration of small to midsize businesses as stated in their 2006 Business Plan.
3.Through its breadth and depth of both national and Private brands, as well as through its promotional programs, Branding message, purchasing power, and financial clout, Office Depot can exponentially grow revenues, market share and profitability through  empowerment of the outside sales force to meet the needs of the small business previously served by Allied.
4.Send a clear message to shareholders, analysts and Wall Street that they are "walking the talk" and are dead-on serious about growing the base of small business customers which brings with it, larger rings and market basket, elevated Gross Margins due to a larger proportion of Private label purchases as a % of the total sale, and the opportunity for greater frequency of purchase annually(average small business will purchase 8 times per year).

Although a $300 million company acquisition represents but a fraction of Office Depot's annual sales of over $14.3 billion, much can be said about a company that executes it's business plan strategy and does it with smart business decisions. In mid-February, Office Depot had also announced the acquisition of controlling interest in South Korea's Best Office Co., Ltd.

HP Revenues--Is it printer sales or consumables driving Operating Profit?

May 22, 2006

Analysis of:HP Reports Second Quarter 2006 Results | www.hp.com

Within the text of the press release on 2nd Quarter performance, it  boggles the mind while reading the results of the Imaging and Printer Group(IPG) relating to overall operating profit for HP. To suggest that this is the crown jewel of overall HP operations would be a gross understatement when comparing the numbers against all other divisions. A few of the highlights include:
1.Imaging and Printing revenue grew 5% year over year to $6.7 billion
2.Supplies revenue grew 10% year over year
3.Commercial hardware revenue grew 4% year over year
4.Operating Profit grew to $1 billion or 15% of total revenue against $814 million, or 12.7% in the same period LY

Several key takeaways can be gleaned from the metrics above:
1.HP continues to dominate market share in the printer business with current and future growth coming from laser print.
2.With retail prices declining in the printer hardware sector in both inkjet and laser, is it simply the strength of the consumables business that is carrying this division?
3.With potential revenues and profits in the billions at risk, what steps will HP take to protect market share in ink and toner against Private label and remanufactured(refilled) cartridges and ink refill stations at companies like Island, Walgreens and OfficeMax?

This writer believes that profit margins are quickly disappearing from the sale of consumer oriented inkjet printers and that the segment is wrought with competition from Dell, Epson, Canon and LexMark. It's a consumers paradise today in terms of purchasing a quality printer at a "dirt cheap" price. 

Everyone wants a slice of the Ink/Toner "pie"

May 15, 2006

Analysis of:The Ink Blog | www.pacificink.com

The original article posted on 2/9/2006 responds to a WSJ article entitled "A Cheaper Way to Refill Your Printer."  Searching Google, Ask and other Internet search engines can yield more articles on Ink than the average web surfer could hope to read in a lifetime. However, there is a clear message behind all this opinion, statistics, terminology and rhetoric--Ink is Big Business and everyone from OEM/Printer manufacturers, refillers and third party re-manufacturers, Office Supply, Drug, Big Box and grocery want their share of this growth category. The consumer must determine what method of replenishment works best for them with the underlying motivation of purchasing the best quality and optimum yield at the best possible price.

Perhaps a better way of understanding the options that exist for the consumer and small business would be to first define how replacing 
an empty cartridge can be achieved:
1.A new cartridge(OEM) can be purchased with the HP, CANON, EPSON, BROTHER name on the package.
2.A remanufactured cartridge which has been disassembled, worn parts replaced and then refilled by third party companies and sold under many names including Private Label brands at SPLS, OD, and OMAX.
3.Refilling can be done at places like Island, Walgreen's, and OfficeMax.

line is that digital imaging has spurred unparalleled growth and will continue to grow as consumers gravitate to higher mega pixel Digital cameras, photo quality printing done at home/office, and the need for both color inkjet and Laserjet technology to fuel and sustain the growth in the consumer, small and large business segments.

Private Label Brands increasing profits in the OSS Channel

May 15, 2006

Analysis of:Retailers Ply Their Own Brands | informationweek.com

In the ongoing quest of the OSS channel players to increase the  small business customer base, build brand image as well as to increase gross margins and operating incomes, the growth of store brands continues to be a major thrust in the channel in 2006. The article referenced shows that SPLS continues to build assortments through product development, patenting, and IT enhancements that allow for SPLS to become more like a manufacturer through deployment of product life cycle management software. SPLS finished 2005 stating that private label sales constituted 18% of their total business.

Similarly, Office Depot and OfficeMax look to advancing assortments and category lines as much and as often as the customer gravitates to purchasing private vs national brand goods.
Office Depot finished 2005 stating that private label sales were now 20% of total sales and continued its commitment to grow the Christopher Lowell line of furniture and accessories, Foray writing instruments, and Ativa electronics, all geared to increasing the branding image and bolstering margins. In October, 2005, OfficeMax opened a dedicated sourcing HQ in China, specifically positioned to help the retail stores drive additional high margin sales of private label product lines.

One additional commonality of the private label brands in the big 3 is that they all feel that store brands are not just "knockoffs" of branded goods--they speak of their  private brands as comparable if not better in terms of quality and less expensive to purchase than national brands. Although this may be unsettling to suppliers such as ACCO, AVERY, Newell-Rubbermaid and others, it has raised the bar for suppliers to compete.

Office Supply Sector "Turning GREEN" To Enhance Brand Image

April 24, 2006

Analysis of:Office Depot Names Yalmaz Siddiqui Environmental Strategy Advisor | mediarelations.officedepot.com

As FY 2006 marches on in the Office Supply segment, it becomes clearly evident to the writer that being environmentally responsible is quickly becoming a key differentiator as well as a solidifier in "building the brand." Office Depot has become the most recent company to announce a commitment to doing the right thing for the environment with the recent appointment of Yalmaz Siddiqui to the position of Environmental Strategy Advisor.

Siddiqui's primary role will be that of creating an aura of increased
understanding of environmental issues and opportunities among suppliers, customers and associates which will set the stage for a
value proposition in Office Depot's branding image and subsequently, a chance for a larger slice of market share. As customers coming from a higher demographic tend to be more environmentally conscious as well as being representative of the type of customer that Office Depot directs Marketing and Advertising to, the creation of this position is a perfect match between doing the right thing and capturing a larger share of the of the business. This is a sound strategy and one that will create sales opportunity in both clean and competitive markets. The environment is a timely, top of mind subject in almost everyone's mind--the time is right for Office Depot to "cash in" on being environmentally responsible and doing so in conjunction with its announcement in March that the remodeling of all its stores to the M2 format is its top priority in 2006. The synergy created by being both environmentally conscious as well as being consumer conscious should help Office Depot make headway in its quest to move closer to STAPLES brand dominance.

Previous Page : 123456Next81 to 100 of 106