Many people stay on their jobs instead of starting new businesses when the economy is good. This could mean less growth for office supply retailers. The other driver for growth is home office workers. Office supply powerhouse OfficeDepot acquired Viking Products in 1998 to beef up its distribution of office supplies and equipment merchandising through print catalog ordering. Another significant threat to office supply retailers is the internet.
Many companies can purchase office supplies through the internet without visiting the store.
The internet may even spawn additional competition for the big three office supply warehouse retailers. However, office warehouse retailers have responded by developing their on web sites for their customers. In 1997, the merger between OfficeDepot and Staples was nixed by the Federal Trade Commission because it would have meant less competition in the marketplace and higher prices for consumers and business. Pet store retailing is the latest warehouse retailing concept that offers pet owners the ability to shop for supplies and food. Many people have a great need of caring for their pets as though it was a family member.