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Specialty Retail. Leah Constan-Tatos. Specialty Retail - Industry Overview. Includes stores that sell stationery, school and office supplies “Sub-industries” such as office stationery manufacturers and wholesalers provide goods to office supply stores in the U.S.
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Specialty Retail Leah Constan-Tatos
Specialty Retail - Industry Overview • Includes stores that sell stationery, school and office supplies • “Sub-industries” such as office stationery manufacturers and wholesalers provide goods tooffice supply stores in the U.S. • Schools, universities and households demand these resources • Products offered by this industry generally constitute normal goods
Industry Financials • Revenue $20.3bn • Profit $811.3m • Wages $2.3bn • Number of businesses involved 9,757
Porter’s Five Forces • Threat of Entry…..…………………………...Medium • Threat of Substitution………………………Medium • Bargaining Power of Buyers………………Medium • Bargaining Power of Suppliers……………Low • Industry Competition………….…………...Medium
Relationship between per capita disposable income and corporate profit
Office Depot Overview • Second largest retailer of office supplies in the U.S. with 35.7% market share • Consists of three segments: • North American Retail(this is the only segment that is a part of the Specialty Retail Industry) – 42% revenue • North American Business Solutions -30% revenue • International Division – 28% revenue
Office Depot Valuation • Market Capitalization - $1.39B • Versus industry leader Amazon $2.384B • Beta - 3.5922 • Beta coefficient > market (1), thus more volatility and risk is expected regarding returns
Websites Accessed • IBIS World http://clients1.ibisworld.com.proxy.library.nd.edu/reports/us/industry/default.aspx?entid=1098 • Bloomberg - Office Depot Form 10-K, 2013 http://investing.businessweek.com/research/stocks/financials/secfilings.asp?ticker=ODP • Yahoo Finance http://finance.yahoo.com/q/in?s=ODP+Industry
S&P Capital IQ http://www.netadvantage.standardandpoors.com.proxy.library.nd.edu/NASApp/NetAdvantage/cp/companyValuation.do