Even if you are not glued to CNN everyday, most people are keenly aware of the economic slowdown that arrived in 2008.
Despite a less than spectacular Christmas shopping season last year, not all is bad in the world of commerce.
Some statistics show online retail sales were actually up 6% for the last quarter of 2008. As a whole, online sales were largely flat when compared to 2007, with a modest 1% increase for the year.
“Brick and mortar” locations however did not fare as well in these tougher times.
With higher fixed costs for utilities, electricity and expensive rents for high-traffic locations, “brick and mortar” retailers frequently have to charge more for the same item compared to their internet counterparts.
Here’s some news bites relating to businesses in our market: (printer supplies)
In November, OfficeMax planned on eliminating 245 corporate positions and field management jobs in North America and expected a substantial reduction in for the fourth quarter. OfficeMax has also cut store management, stopped new store construction and postponed its store remodel program until economic conditions improve.
Circuit City plans to close 155 stores that are underperforming, or are no longer a strategic fit for the company.
Office Depot Inc. (the largest office supplies retailer) said it will close 126 stores and six distribution sites in North America. These changes will save about $90 million a year before interest and taxes.
Brick and mortar retailers with less sales revenue will often be forced into leaner inventory levels and less selection. If you have an older printer, you may have noticed your cartridge model disappear from store shelves, since many retailers can only afford to stock the most commonly purchased or profitable supplies.
While some office supply sellers are increasing cartridge prices due to increased cost of inventory, we are still hanging tight with our low prices.
As time goes on and conditions intensify, we foresee a progressive migration to the internet for all types of goods & services. The savings and selection you can find on the internet is increasingly tougher for a “brick and mortar” location to compete with.
About The Author
Bob Stephens writes for ASAP Inkjets. ASAP Inkjets offers ink cartridges & toner at up to 80% off.Signup for their free newsletter for tips & discount coupons at: http://www.asapinkjets.com/ or email: firstname.lastname@example.org