The traditional office supply retail sector is undergoing a profound transformation, heavily influenced by the rise of e-commerce giants like Amazon. This shift has compelled major players such as Staples and Office Depot to re-evaluate their business models, leading to significant strategic adjustments including store closures, increased focus on business-to-business (B2B) services, and enhanced online presence. Despite these challenges, the overall office supply market remains robust, indicating a resilient demand that is now being met through diversified channels.
The dominance of e-commerce, primarily driven by Amazon's success, has dramatically reshaped the retail landscape. This phenomenon, coupled with economic pressures and the global health crisis, has particularly impacted brick-and-mortar office supply stores. In 2024, the U.S. office supplies market generated $11.5 billion, marking a 5% decrease from the previous year, as reported by Circana. This decline underscores the changing consumer preferences and operational hurdles faced by traditional retailers.
Staples, a long-standing fixture in the office supply industry since its inception in 1986, has been at the forefront of this transformation. Initially known for its vast selection of office furniture and technology, the company has increasingly pivoted away from its conventional storefront model. This strategic shift is largely attributed to the "Amazon effect," which has driven consumers towards online shopping and away from physical retail spaces. Consequently, Staples has undertaken a series of store closures, including a net reduction of 13 locations in just four months between October 2025 and January 2026, as per ScrapeHero data. These closures are not indicative of a failing business, but rather a deliberate move to optimize operations and align with evolving market demands.
Office Depot has also experienced similar shifts, undergoing ownership changes and a significant reduction in its physical footprint. Since 2020, Office Depot has closed 200 stores, with a total reduction of approximately 55% in its store count since its 2013 merger with OfficeMax. The company's strategic focus has increasingly veered towards its B2B distribution arm, which now accounts for over half of its total revenue. This unit's growth, even amid overall market adjustments, highlights the importance of adapting to a business model that caters to corporate clients and large-scale distribution.
The office supply market, valued at $183.07 billion in 2025 and projected to reach $186.71 billion by 2026, demonstrates steady growth. Key market trends include online sales contributing 28% of total industry revenue, paper products maintaining a 35% share of global revenue, and desk supplies accounting for 12% of the market. Walmart remains a dominant player in low-cost stationery, indicating a competitive landscape where value and convenience are paramount. Interestingly, despite the digital shift, 40% of office workers still prefer handwritten notes, suggesting that physical office supplies retain a significant role.
Both Staples and Office Depot are not merely retreating but actively innovating. Staples is forging new partnerships, such as opening full-service eye care centers, expanding passport and travel services, and piloting Verizon tech services within its stores. These initiatives are designed to attract customers and diversify revenue streams, showcasing a commitment to reimagining the traditional retail experience. Staples' historical impact, from its iconic "Easy Button" to its pioneering "office superstore" concept, underscores its enduring legacy and adaptability.
The evolution of Staples and Office Depot serves as a compelling case study of traditional retailers navigating the complexities of the digital age. By strategically reducing their physical presence, bolstering B2B operations, and embracing innovative service offerings, these companies are striving to maintain relevance and capture new growth opportunities in a dynamic market.