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Staples and Office Depot were the dominant players in the office products industry for decades. As household names, they controlled billions of dollars in revenue, operated thousands of retail locations, and built massive e-commerce platforms.
Yet, their market power has collapsed in just the past two decades.
✅ In 2006, Office Depot’s market capitalization peaked at nearly $11 billion.
✅ By 2025, that number has plummeted to less than $500 million—a 95% decline.
Office Depot’s struggles aren’t unique. While Staples is a private company, it has faced similar headwinds, shuttering hundreds of stores and struggling to remain relevant in the digital era.
The failure of these once-dominant giants serves as a warning to independent OP dealers: If companies with massive scale, brand recognition, and decades of experience can’t survive the industry shift, what does that mean for smaller dealers?
The answer: If OP dealers continue to rely on outdated business models, they will face the same fate.
The Common Thread: A Failure to Adapt
At their peak, Office Depot and Staples had two primary competitive advantages:
But as the world shifted toward digital procurement and automation, these advantages became liabilities:
❌ Their brick-and-mortar footprint became a financial burden rather than an asset.
❌ Their e-commerce strategy failed to compete with Amazon Business, which offered better automation, better pricing, and better customer experience.
❌ They relied too long on brand recognition, assuming customers would stay loyal despite increasing frustrations.
Ultimately, Office Depot and Staples have failed to sufficiently modernize their e-commerce, procurement, and go-to-market strategies, leaving the door open for Amazon Business, Walmart Business, and other digital-first competitors to take market share.
Why Independent Dealers Haven’t Collapsed (Yet)
Unlike Office Depot and Staples, local independent OP dealers have not experienced a 95% collapse in valuation. Why?
🔹 Stronger customer relationships → Many OP dealers have long-term, loyal customers who appreciate personalized service.
🔹 Less reliance on walk-in traffic → Unlike big-box retailers, independent dealers never depended on physical store visits.
🔹 A focus on B2B instead of B2C → Dealers specialize in serving businesses, rather than trying to cater to both businesses and consumers.
But while these advantages have helped dealers stay afloat, they are not enough to ensure long-term survival.
Amazon, Walmart Business, and other online competitors are actively targeting dealer customers—either by:
The Biggest Lesson from Office Depot & Staples: Convenience Wins
What truly killed Office Depot and Staples was not price—it was friction.
They want automation.
That’s exactly what Amazon Business provides:
✅ One-click reordering based on past purchase history.
✅ AI-driven product recommendations that eliminate manual searches.
✅ Punchout integrations with corporate ERP systems for frictionless procurement.
Office Depot and Staples never fully automated the purchasing process, and because of that, they lost customers not just to lower prices but to a better buying experience.
Why Dealers Must Act Now
OP dealers cannot afford to assume that customer relationships alone will protect them. The same mistake was made by Office Depot and Staples—believing their brand recognition and history would shield them from digital competition.
It didn’t.
The dealers who fail to modernize will see their customers gradually shift to competitors who offer:
✔ Frictionless reordering
✔ Automated product selection
✔ Transparent pricing and cost controls
The good news? OP dealers still have a chance to evolve, but only if they act before they reach the crisis point that Office Depot and Staples now face.
Related Reading:
Why Legacy E-Commerce & ERPs Are Failing Dealers: Independent Office Products dealers face a significant challenge: legacy ERP-driven e-commerce platforms fail to meet modern B2B demands, hindering growth and customer satisfaction.