OPI APP JAN FEB 2023 B

BIG INTERVIEW

Andrew Jones, OT Group January/February 2023

More of

THE SAME?

High inflation, rising fuel costs, labour shortages, supply chain issues, hybrid working and consolidation – that was 2022.

What’s in store for this year?

INSIDE THIS ISSUE l S.P. Richards sold l EVO to the rescue for Complete l Paper shortages in Oz l Tribute: Jennifer Smith l Energy crisis in Europe l Education at a glance l Writing resilience l State of the Industry report l OPI Partnership preview l Tim Holmes remembered

CONTENTS 6 Tribute A look back at the achievements of Jennifer Smith, one of our industry’s most loved and respected personalities 20 Big Interview Almost three years after the creation of OT Group, Andrew Jones and his team are now ready to go and poised for growth 26 Focus A year full of challenges is gone. Will it be more of the same in 2023?

Big Interview: Poised for growth

Andrew Jones has been heading up OT Group for just over two years. He was drafted in from a division of parent company Paragon Group which bought OfficeTeam, ZenOffice and the assets of Spicers – formerly all part of the Spicers-OfficeTeam Group – for £2 million ($2.4 million) in May 2020.

The task? Bring them together, make them bigger and better and, of course, profitable. With plenty of turnaround expertise but no industry experience, Jones surrounded himself with a leadership team that had this valuable background knowledge and, as he says, “knew what had to be done”.

SPOTLIGHT: ENERGY CRISIS

32 Category Update In an increasingly digital age, writing instruments are still proving popular 36 Category Update Changing purchasing behaviour in the education space 40 Advertorial Rocada: making a splash in the UK 42 Research Preview: the state of our industry 2022-2023 44 Preview: OPI Partnership Strategic meetings and unrivalled networking 46 Preview: Ambiente Paperworld Frankfurt makes way for Ambiente.

What's in store?

REGULARS 5 Comment 8 News 16 Green Thinking News 18 OPI Small Talk 48 5 minutes with...

H.B. Macey 50 Final Word Tim Holmes tribute

January/February 2023

Companies will double down on cost-reduction measures in non-strategic areas on their balance sheets. What’s more, energy expenses are difficult to control, and reducing consumption will never offset the impact of price increases [...].

Unfortunately, business supplies are not strategic purchases. We saw public and private sector organisations focus increasingly on digitalisation projects to overcome paper shortages and price surges in 2022.

30 Spotlight As an energy – and cost-of-living – crisis besieges Europe, what are the ramifications for our sector?

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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 1462 422 143 heike.dieckmann@opi.net Deputy Editor Michelle Sturman michelle.sturman@opi.net News Editor Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 7973 186801 chris.exner@opi.net

W

A sign of things to come?

ow! If the first few weeks of 2023 are anything to go by, we’ll be in for quite a ride this year. As you can see from our unusually long news section (page 8), a lot has been going on.

Many industry insiders have been wondering how Complete Business Solutions’ incredible acquisition spree in the UK would pan out. Well, it didn’t really, and EVO Group – under new leadership, I might add – came to the rescue, not entirely surprising given Complete is one of the largest customers of VOW Wholesale. This will be a story which will undoubtedly unfold over the coming months.

In the meantime, of course, chief competitor OT Group has been readying and steadying its ship under the leadership of Andrew Jones, is ‘poised for growth’ and will be keen to take advantage of any turmoil that might ensue at EVO (page 20).

If the first few weeks of 2023 are anything to go by, we’ll be in for quite a ride this year

Head of Media Sales Chris Turness +44 7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood events@opi.net Event Programmer Sophie Carus sophie.carus@opi.net

PRODUCTION & FINANCE Studio Joel Mitchell joel.mitchell@opi.net Finance & Operations Kelly Hilleard kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 7799 891000 steve.hilleard@opi.net Director Janet Bell +44 7771 658130 janet.bell@opi.net

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January/February 2023

Executive Assistant Debbie Garrand +44 20 3290 1511 debbie.garrand@opi.net

Hopping across the pond and there’s more. S.P. Richards sold!

Again, this didn’t come as a real surprise, although none of the OPI team could have predicted exactly who would be the acquirer. Plenty more to come here too – hopefully starting in the next issue – but the early consensus is that this development is good news.

For our Focus feature (page 26), Andy Braithwaite talked to a variety of industry experts to find out what – in their opinion – lies ahead. Aside from a huge amount of macro turbulence – also covered in detail in our Spotlight (page 30) – it’s Essendant’s Harry Dochelli who points to further consolidation. Although, admittedly, he refers to the independent rather than the wholesale channel.

I can’t help but feel that we’re going to hear much more about the wholesalers this year though – there are so many topics to face and address – data, content, product scope, hybrid working and sustainability spring to mind.

I’d like to conclude by talking about two people who so admirably addressed all the challenges – and opportunities – thrown at them, professionally and privately.

They did so with immense gusto, deep knowledge, incredible kindness and integrity, and awe-inspiring resilience. They are very sadly no longer with us – Jennifer Smith and Tim Holmes (pages 6 & 50). Two HEIKE DIECKMANN, EDITOR industry greats who will be sorely missed.

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TRIBUTE

O

A shining LIGHT

ne of the brightest stars in our industry passed away last December. Jennifer Smith, CEO of Minnesota-based Innovative Office Solutions, will be very sorely missed, most of all by her husband Brooks, children Maxwell and Madison and their extended families. But the entire US business supplies sector – customers, suppliers, partners, competitors, employees – will mourn her deeply too.

Jennifer had become an icon in our space. She was loved and respected in equal measure – for her outstanding, often daring, business achievements as well as her unique, progressive and incredibly compassionate way of running the organisation.

Under her inspirational leadership, Innovative grew to an almost $170 million business and was one of the pioneers of both the stockless operation and online ordering. It was also quick to realise the importance of product diversification, long before many others did.

That aside, Jennifer built a culture at Innovative that was the envy of her peers. As close friend and business partner, Essendant President/CEO Harry Dochelli, says: “Innovative is an enterprise where everyone has a voice and is highly valued and that is entirely due to Jennifer. She ran it like a Fortune 500 company – with the messaging and branding she nurtured but also, importantly, with all the training and people development she installed in the business. Her accomplishments were second to none.”

Don’t let tomorrow take up too much of today

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Bob Mairena, President of Office Solutions in Yorba Linda, California, wholeheartedly concurs: “She made me a much better person and a much better businessperson too. We shared best practices and she was extremely competitive – it became a game between the two of us.

She made me more ambitious because I knew I had to keep up with her and she made it a lot of fun. She was just a great person.”

Jennifer won many prestigious awards over the years, including the Business Solutions Association’s Leadership Award, Ernst & Young’s Entrepreneur of the Year, Most Admired CEO, and Minnesota’s Best Places to Work. All the while, her mantra remained refreshingly grounded and down to earth: “Don’t let tomorrow take up too much of today.”

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FIGHTING SPIRIT When Jennifer passed away on 3 December, aged just 56 and with her family by her side, she had fought a long and intense battle against cancer. First it was breast cancer, diagnosed in 2018, and then, having overcome this after very aggressive treatment, acute myeloid leukaemia in 2021.

But, demonstrating her unrelenting resilience, she didn’t die of cancer. She beat it and was cancer-free in the end, thanks to her determination and the pioneering work of City of Hope. Particular mention here goes to Dr Marcucci and his research team for whom she raised an outstanding $1 million in an attempt to help other leukaemia sufferers survive and live to tell their tale. So very sadly, Jennifer wasn’t able to, as the incredible toll from the prolonged treatments was too much for her body to take.

Jennifer was passionate about everything she did – from running Innovative, to being hugely involved in her local community, a devoted member of her family and a fervent supporter of City of Hope’s extraordinary work.

Dochelli adds: “She was so balanced in her life – very driven and highly intelligent from a business standpoint, wanting to succeed and wanting people around her to succeed. But then she would talk about her grandchildren following some intense business negotiations. She will be very much missed.”

To read more about Jennifer’s life and achievements as well as further industry comment, please visit page 12 of the December/ January issue of our sister publication Independent Dealer – idealercentral.com

Jennifer Smith

NEWS

Analysis: SPR finds a new home US wholesaler is to be acquired by leading distribution group

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US wholesaler S.P. Richards (SPR) has signed a definitive agreement to be acquired by global distribution giant Central National Gottesman (CNG). The deal is set to close on 31 January 2023, shortly after this issue of OPI went to press.

Once that happens, SPR will become a division of CNG, led by SVP Bill Meany. He will become President of the wholesaler in addition to his duties of running another group company – paper, packaging and facilities supplies distributor Lindenmeyr Munroe.

“We are committed to enhancing the valuable services SPR provides to the independent dealer network and its suppliers,” said Meany.

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SPR LEADERS WILL STAY ON SPR was taken private in July 2020, when a consortium of investors led by Mike Maggio and Yancey Jones Sr bought the $1 billion wholesaler from Genuine Parts Company.

Both men are staying on in leadership advisory roles for a further 12 months.

“The acquisition by CNG allows SPR to continue our strategic growth plans through investments and an enhanced inventory position,” said Jones, who will become

President of the SPR advisory board. “Mike and I have always believed that an independent wholesaler is critical to the success of our customers and supplier partners. CNG understands the importance of SPR remaining a traditional wholesaler.”

Maggio, who will continue with the organisation as a Senior Advisor to Meany and an advisory board member, added: “Finding a like-minded company that believes in a strong employee-first culture was a top priority as we explored this exciting opportunity with CNG.” The acquirer underlined that SPR will continue to operate as a separate entity, with “minimal operational changes to the business beyond ongoing investment in updated logistics, technology, additional inventory and warehousing systems to support SPR’s long-term growth strategy”.

Those words will no doubt be welcomed by stakeholders in the US independent dealer channel. During a US Industry Leaders webinar hosted by OPI on 12 January, it was recognised that access to capital in order to, among other things, improve SPR’s inventory position and expand its product breadth was something the wholesaler needed.

LONG-TERM PARTNER News of the deal was mainly seen as a positive development for a number of other reasons. CNG is a privately-held company with a strong track record of acquisitions, not a private equity firm intent on making short-term financial gains. This should allow SPR to solidify around a longer-term partner specialised in distribution.

We are committed to enhancing the valuable services SPR provides to the independent dealer network and its suppliers

Bill Meany

The transaction also keeps SPR out of the hands of the big boxes. There had been concerns for several months about the future of the business, with many fearing it would even be acquired by The ODP Corporation.

One thing SPR’s reseller partners will be looking at closely, however, is to what extent there is a data firewall between the wholesaler and other CNG divisions, such as Lindenmeyr Munroe and Kelly Spicers Paper. These both have direct operations and, as such, compete with dealers in some markets.

We hope to bring you an update on this (potential) issue and other aspects of the acquisition in the next issue of OPI.

New EVO CEO Andrew Gale spent the holiday period dealing with the collapse of a key customer

The end of 2022 signalled a leadership change at leading UK multichannel operator EVO, which includes VOW Wholesale, Banner, Staples.co.uk, Premier Vanguard, and now Complete Business Solutions.

Following discussions between previous CEO Steve Haworth and private equity owner Endless, they agreed it was time for a change, with Endless turning to experienced EVO CFO Andrew Gale to lead the group.

We’re looking to grow. That means we’re going to be buying more

Andrew Gale

TO THE RESCUE The last thing Gale probably needed was one of VOW’s largest customers slipping to the brink of financial collapse. However, just before Christmas, £100 million ($122 million) dealer Complete filed a notice of intention to appoint administrators.

It is no surprise that EVO was actively involved in talks to find an acceptable solution to the reseller’s problems. The result was EVO acquiring the trade and assets of Complete through a pre-pack administration on 9 January in a deal worth £11.5 million.

Aside from preventing the collapse of this dealer roll-up, Gale called the transaction a “pragmatic deal for EVO with a positive outcome for all, bringing Complete into the EVO family”. He highlighted that the priority is to stabilise the dealer and get it fully functioning again after the challenging period it has been through.

Eyebrows will no doubt be raised in the UK marketplace given VOW Wholesale’s owner now controls a £100 million dealer.

However, Gale said this aspect should not be overthought. “Managing a multichannel model isn’t new for EVO. The focus, with an important customer in difficulty and more than 600 jobs at stake, was how we could come up with a better solution for all involved.”

Complete’s trade creditors might not agree with the “better solution” part. They (excluding VOW itself) were owed around £13 million and there is little chance of any of this being repaid given Complete’s lack of assets.

Arthur Hindmarch, Chairman of the UK’s largest family-owned independent operator Commercial – and another very sizeable VOW customer – said his business was “fully supportive” of the transaction, calling it “a good thing for the dealer channel” in the UK. Had EVO not acted, Commercial, like other independent resellers, could have faced the prospect of VOW being destabilised by the loss of a key account which owed it £4 million.

After what happened to Spicers in 2020, that would not have been a positive development for the channel.

January/February 2023

IMPROVED FINANCIAL PERFORMANCE Speaking to OPI about the timing of the decision, Gale said he was keen “to freshen things up” ahead of what is expected to be a big year for the group “in terms of delivering improvement in its financial performance”.

“We are a private equity-backed business and we have an expectation that our numbers should be better,” Gale stated. “We are very focused on this.”

One of Gale’s first actions as CEO was to reinstate Adrian Butler as full-time Managing Director at VOW Wholesale, following a period when he had also been overseeing Banner after the departure of Craig Varey at the end of 2021.

Gale promised the VOW team would be “more proactive and determined” on serving its reseller clients as part of what he called a “back to basics” approach.

Adding that VOW and the independent reseller channel was the group’s “bread and butter”, he emphasised the importance of getting stock and delivery propositions “right” and giving resellers “a good service”.

The new CEO also had a message for vendors and said they shouldn’t fear change. “We’re looking

to grow. That means we’re going to be buying more, which should be good for the supply base,” he said. Gale underlined the need to be “joined up” with suppliers in order for EVO to be able to deliver on its promises to customers.

Other areas he will be looking at include Banner, where he recognises the need to differentiate key private and public sector accounts and mid-market customers. A senior sales appointment at the reseller, reporting directly to Gale, is expected shortly.

NEWS

Analysis: A baptism of fire

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NEWS

Analysis: Essendant gathers PACE

The US wholesaler has upped its presence in the national accounts space In December, Essendant announced it had entered into a national office supplies and furniture agreement with cooperative organisation Purchasing Association of Cooperative Entities (PACE). PACE is a Texas-based entity run by a local education unit which currently offers more than 65 contracts across various product groups.

What was unusual in this instance was that Essendant did not bid on the contract. It acquired an existing agreement for OP and furniture previously owned by AHI Enterprises, a consortium of independent resellers headed

by Texas dealer principal Mark Nolan.

AHI was established in 2010 as part of a successful bid on the Texas statewide office supplies contract, something of a landmark win for the independent dealer channel at the time.

Essendant (then called United Stationers), was a strategic partner of AHI for that agreement and its subsequent PACE contract.

Commenting on the transfer to Essendant, Nolan pointed to the wholesaler’s ability to scale the contract nationally. As can be seen on the map, there are many areas for Essendant to exploit. The wholesaler will house the PACE contract in the Vertical Markets Group, where its dealer partners service end-user customers.

PACE dealer coverage in the US

MAINTAINING GOOD RELATIONS The issue of Essendant holding group purchasing contracts in its own name has been somewhat controversial in the past.

However, Independent Suppliers Group CEO Mike Gentile – who also oversees its EPIC Business Essentials national accounts programme – said this development has no bearing on the group’s relationship with Essendant on national accounts.

“It becomes an issue somewhat if the wholesaler also services the contract without the local dealers,” he told OPI, but there is no evidence, or history, to suggest Essendant will go down this road.

Similarly, AOPD Executive Director Mark Leazer doubts Essendant’s ownership of the PACE contract will be particularly impactful.

In fact, he said he had already received assurances from the wholesaler that its support for AOPD’s NCPA contract – a competitor to PACE – was “as secure as it has been”.

www.opi.net

Edding sells stake in Brazilian manufacturer

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Writing instruments vendor edding has confirmed the sale of its minority stake in Brazilian manufacturer Compactor.

The Germany-based group acquired a 21% share in Compactor in 2014. The originally agreed purchase price was €3.3 million ($3.5 million), but this was later reduced to €1.7 million following some legal disputes and the recent impact of COVID on the Brazilian firm’s business.

Now, edding has announced the sale of the shareholding as part of its Strategy 2025+ plan, which does not include a specific focus on developing the Latin American market.

Negotiations with Compactor’s other owners were successfully concluded

in November, with edding set to report an after-tax gain of €400,000 in its 2022 accounts.

The manufacturer’s strategic plan also includes a transformation of its reporting structures, something which will impact its writing and visual

communications segments. In the new organisation, B2B sales in the writing category will come under the Office & Industry Supplies business unit – OFIS – while Legamaster will be part of the Collaboration @ Work, or COWO, division.

Local manufacturer may permanently halt production after environmental pressures Australia’s locally-made Reflex brand of copy paper may well become a thing of the past following Opal Australian Paper’s recent decision to stand down its machine at the Maryvale mill in Queensland.

Opal – owned by Japanese giant Nippon Paper – has stopped white paper production at the site following the suspension of timber harvesting by key supplier VicForests. At the end of last November, a court injunction ordered VicForests to suspend logging on land inhabited by a native possum, cutting off Opal’s main source of supply.

In a statement on 4 January, Opal said it was “working to address the current shortfall”, but had not been able to identify viable alternative sources of wood. As a result, it had stopped production on its M5 machine at Maryvale on 23 December.

The company added: “Opal continues to consider a number of different scenarios in the longer term, in case possible alternative wood sources are below the volumes required or are not commercially feasible. This is a complex situation and no longer-term decisions on operational changes have been made at this stage.”

NEWS

Analysis: Aussie resellers face paper shortages

OTHER ARRANGEMENTS Adam Joy, CEO of dealer group Office Brands, told OPI in early January there was enough stock in the marketplace for approximately 4-6 weeks. “After that, there will be no more Reflex or other brands produced from Opal’s mill for the foreseeable future,” he warned.

Joy added that Office Brands had secured most of its volume for 2023 through a hybrid arrangement of imports. “We continue to work with existing partners and have been establishing some new relationships.”

Late last year, Office Brands, along with Office Choice, GNS Wholesale and the Australian Lottery and Newsagents Association, wrote to the government requesting that antidumping duties on imported paper be temporarily suspended.

There appears to have been little progress in this regard as this issue of OPI went to press.

Manutan board approves takeover

From left: Manutan founder and Chairman Jean-Pierre Guichard and CEO Xavier Guichard

January/February 2023

On 19 December, the board of directors at European MRO and business supplies reseller Manutan unanimously approved the move by the controlling Guichard family to take the firm private.

The transaction was announced at the end of October. The Guichard family group had proposed to buy Manutan’s publicly listed stock – about 26% of its share capital – for up to €105 per share in a deal worth around €212 million ($225 million). Once done, the reseller will delist from the Paris stock exchange.

If all now goes to plan, the deal will be finalised in Q1 this year.

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NEWS

COLOP opens US subsidiary From left: Franz Ratzenberger and Christoph Skopek

Stamp manufacturer COLOP has upped its presence in the all-important US market. The Austria-based firm has confirmed the establishment of its own sales subsidiary near Chicago, Illinois, “in order to be able to offer the entire product range under one umbrella brand and to develop long-term strategies for the US”.

COLOP has had a presence in the country since 1987, but the need to set up a fully-fledged subsidiary came about following the decision by partner Cosco last year to exit the stamp distribution business. COLOP has turned to stamping industry veteran Brian Schwab to head the new organisation.

The US is already COLOP’s largest market, representing around 15% of total sales. But, as joint Managing Directors Franz Ratzenberger and Christoph Skopek said: “We see good chances to increase the American business to 20% of our revenue and achieve sales in the double-digit million-euro range with COLOP USA.”

Bol.com to cut jobs

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Bol.com has announced a major workforce reduction, it has been reported. The Dutch e-commerce reseller – the country’s largest online retailer – is to axe 300 jobs as it looks to make cost savings of about €225 million ($235 million) in the next three years. The cuts represent approximately 10% of its staff.

Q3 2022 sales at Bol.com were up by around 5% year on year, including growth of 11% from some 50,000 third-party resellers that make up 59% of sales on the firm’s marketplace platform.

Nevertheless, full-year sales are expected to be relatively flat versus 2021 and the outlook for 2023 is the same, with Bol.com owner Ahold Delhaize admitting the non-food e-commerce channel in the Benelux region remains “soft”.

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Amazon agrees data deal with the EU Amazon’s EU HQ in Luxembourg

Amazon has agreed to change its business practices in Europe in order to end a legal battle with EU lawmakers.

The European Commission has accepted commitments by the e-commerce giant that it will no longer use third-party seller data to inform its own retail decisions and that it will grant sellers equal access to its Buy Box and Prime programme.

The Commission opened a formal investigation into Amazon’s use of non-public data in 2019, following this up with a second probe in 2020 (for more details on the commitments Amazon made in three areas of concern – data, Buy Box and Prime – see opi.net).

The offered commitments cover all of Amazon’s current and future marketplaces in the European Economic Area. They exclude Italy for those relating to Buy Box and Prime in view of an earlier decision by the Italian competition authority to impose its own remedies on Amazon.

Meanwhile, the German competition authority (Bundeskartellamt) has announced an extension of two investigations into Amazon competing unfairly with its third-party resellers.

The organisation is looking at whether marketplace sellers on Amazon.de are being unfairly treated by the internet giant’s price control mechanisms and its policy on branded products.

Citing changes to Germany’s laws governing large digital companies, Bundeskartellamt President Andreas Mundt commented: “We are examining in both proceedings whether and how Amazon impedes the business opportunities of sellers which are active on the Amazon marketplace and compete with Amazon’s own retail business.”

He added: “Amazon operates the most important marketplace in e-commerce and thus has a key position in this area, which allows the company to set far-reaching rules for competition on its platform. Our new competencies, which are precisely intended to restrict such power to set rules, allow us to intervene more efficiently against Amazon’s anti-competitive practices.”

Amazon has challenged the Bundeskartellamt’s right to extend its investigations, but the watchdog can continue its proceedings until a decision is reached in the courts.

US cooperative purchasing giant OMNIA Partners has announced the acquisition of National Cooperative Purchase Alliance (NCPA), a leading national government purchasing cooperative that serves public sector agencies and non-profits in all 50 states of the US. OMNIA said the transaction augments its “differentiators of unparalleled scale and expertise while driving increased savings and efficiency for the purchasing community”.

“The acquisition of NCPA enhances our value in the public sector market by adding additional world-class supplier partners and further extending OMNIA Partners reach into the public sector,” said OMNIA founder and CEO Todd Abner.

NCPA – which is based in Texas – has contracts across a wide range of product and service categories, including technology distribution, office & school, and facilities supply. Its vendors include AOPD, Best Buy Education, HP Inc, TD SYNNEX, MSC Industrial Supply and Envoy Solutions.

AAA Business Supplies and Interiors has announced the acquisition of another leading California-based reseller, The Office City. The Office City CEO Bill Jones, long a leader in the AOPD community, and Principal Jerry Carroll, who is on the board of Pinnacle Affiliates, are both joining AAA in what is described as “key leadership roles”.

“We view this as a combination of equals which are bringing their collective strengths to the table to make us all stronger,” said AAA Partner Steve Danziger.

The combined company – which will continue to operate separately – has seven locations in California, with a strong presence throughout the north of the state and the Central Valley area. It also has an expanded presence in the education and government markets.

Between them, AAA and The Office City have acquired or merged 24 companies over the past 40 years.

Steve Danziger

Plaisio set to be delisted Leading Greek business products reseller Plaisio is expected to be delisted from the country’s stock market in the coming months.

On 22 December 2022, founder and majority shareholder George Gerardos launched a voluntary tender offer to acquire all outstanding shares in the business.

NEWS

AAA buys Office City

OMNIA tightens grip on cooperative purchasing

At the same time, he formed a shareholder agreement with his son – and company CEO – Costas Gerardos to act in concert. As of the offer date, the two men held a combined total of just over 18.1 million of Plaisio’s shares, representing the sum of 82.2% of the firm’s paid-up share capital and voting rights.

January/February 2023

From left: Costas and George Gerardos

This left just under four million shares outstanding that are listed and traded on the Athens stock exchange (ATHEX). An offer price for these shares was set at €4.58, more than 44% higher than the weighted average trading price in the six months preceding 22 December 2022. It values the tender offer at approximately €18 million ($19 million).

Gerardos Sr has since been purchasing more stock. As of 16 January, he and Costas held around 21.4 million shares representing almost 97% of the firm’s voting rights – well above the 90% required for them to force a squeeze-out of any shares not tendered during the offer period.

Following the exercising of the squeeze-out, after which both will hold 100% of Plaisio’s voting rights, a general assembly will be convened in order to rubber-stamp the delisting from ATHEX.

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NEWS

Stationery vendors make dumping claims

Domtar receives Resolute approval and announces CEO transition

The US International Trade Commission (ITC) is investigating claims by a coalition of file folder manufacturers that some products are being unfairly ‘dumped’.

In early December, the ITC noted: “There is a reasonable indication an industry in the United States is materially injured by reason of imports of paper file folders from China, India and Vietnam […] that are alleged to be sold at less than fair value and to be subsidised by the government of India.”

The ITC has now commenced what it calls the “final phase” of antidumping and countervailing duty investigations. The process stems from petitions filed on 12 October 2022 by the Coalition of Domestic File Folder Manufacturers, which includes leading office products manufacturers Smead and TOPS. The antidumping and countervailing duty petitions allege Chinese, Indian and Vietnamese exporters of file folders are dumping and/or are subsidised at rates in excess of 230%. The proceedings relate to imports of all types of paper file folders, pockets, jackets and wallets, but do not extend to binders or fashion folders.

The ITC investigation is expected to be carried out over the course of the next 12 months. Parties named in the investigation include prominent Indian and Chinese stationery manufacturers, with imports having been made by a large US office supplies retailer/reseller, a mass market retailer and a well-known OP sourcing company.

The Canadian Competition Bureau (CCB) has approved Domtar’s acquisition of Resolute Forest Products, but has required some facilities to be divested.

The CCB has entered into a consent agreement with Paper Excellence – Domtar’s owner since 2021 – to address competition concerns it has with the proposed purchase of Resolute. Specifically, a review concluded that the deal would “likely lessen competition substantially in the supply of northern bleached softwood kraft pulp in eastern and central Canada and in the purchase of wood fibre from private lands in north-western Ontario”.

To resolve the CCB’s concerns, Domtar has agreed, post-transaction, to sell its Dryden pulp mill and Thunder Bay pulp and paper mill to two independent purchasers approved by the Commissioner of Competition.

Once the acquisition of Resolute has been completed, most likely in the first half of this year, Domtar will then have to make “commercially reasonable efforts” to sell the two locations. If this is not achieved during the initial sale period (the duration of this is confidential), responsibility for the divestitures will be placed in the hands of a trustee appointed by the Commissioner.

In other Domtar news, the company announced late last year that CEO John Williams will retire in 2023. The 68-year-old will officially leave on 30 June 2023 after more than 14 years at the helm. The British exec joined Domtar from SCA Packaging back in 2009.

Succeeding Williams will be Steve Henry, Domtar’s SVP of Packaging, who has been with the manufacturer since 2011. Prior to that, he worked for Georgia-Pacific, Weyerhaeuser and International Paper. Until June, From left: John Williams and Steve Henry Henry will serve as the vendor’s COO, leading its pulp, paper and packaging operations and commercial functions, while Williams continues to head all corporate functions before his retirement.

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FILA continues to invest in India

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Global stationery and office products vendor FILA has said it will make major investments in India over the next few years. The Italy-based group – which owns the Ticonderoga pencil brand in the US – entered the Indian market in 2012 when it paid €5.4 million ($5.8 million) for an 18.5% stake in local manufacturer DOMS. At the time, DOMS had annual sales of around €10 million.

In November 2015, when DOMS had a sales run-rate of €42 million, FILA increased its shareholding to 51% at a cost of €36 million. Since then, DOMS has been a fully consolidated subsidiary of FILA. Today, India is FILA’s second-largest single market. In 2019, its revenue there was €75 million, and the figure is

expected to be about €110 million when FILA publishes its 2022 results in a few weeks’ time – a strong rebound from steep declines experienced during COVID. FILA CEO Massimo Candela said India was “the most important country in which to do business over the next ten years”. He added that FILA plans to double its manufacturing footprint there, spending approximately €15 million in the process, to support the expected double-digit growth.

Nikala Busse

Alex Stone

Lindsley Ruth

Thomas Drews

Officeworks appoints first-ever CIO Australian business products reseller Officeworks has hired its inaugural Chief Information Officer with the appointment of Nikala Busse.

Busse is no stranger to Officeworks’ owner – she previously held senior IT and technology positions at former Wesfarmers-owned retailer Coles.

Axel Hennemann

Office Friendly promotes Stone Dealer group Office Friendly has appointed Alex Stone to the role of Sales Director for its UK and Ireland operations. Stone has been with the organisation for more than nine years, and was most recently Head of Sales.

He is also co-Chair of the BOSS Leaders of the Future committee.

CEO leaves RS Group Lindsley Ruth, CEO of industrial, safety and business products supplier RS Group, left the firm with immediate effect in December. RS said Ruth had departed “due to personal reasons” after leading the UK-based group for almost eight years. CFO David Egan will take over in the interim until a permanent CEO is found.

Leadership change at PBS The German arm of European multichannel operator PBS Holding has announced a new Managing Director for 2023. Current Managing Director Harald Pölz will step down from his role, effective 31 March 2023. Taking over will be Thomas Drews, who is currently Key Account Manager at the wholesaler.

Alex Bonarius

Bonarius joins Pukka Pads Former Rapesco exec Alex Bonarius has been named Global Sales Director of Pukka Pads. Prior to joining the UK-based stationery vendor, Bonarius spent six years at Rapesco, most recently serving as Director of its EU Business.

Nectere exec makes Spicers switch Adrian Reid has taken on the role of Business Development Director at OT Group-owned Spicers. Reid has been in the UK business products sector for over 25 years, most recently at UK dealer services organisation Nectere.

Pelikan adds key position Germany-headquartered stationery and school supplies vendor Pelikan has recruited Robert Bierbuesse as Chief Sales and Marketing Officer.

In this newly created role, Bierbusse will be responsible for all activities Robert Bierbuesse across the entire customer journey as Malaysian-owned Pelikan looks to promote the expansion of existing and new business areas and further develop its product ranges.

Mark Allan

Chris Jones

Key appointment at Don Ruffles Mark Allan, until recently Senior Business Development Manager at Nemo Office Club, has joined online business equipment reseller – and Nemo member – Don Ruffles as General Manager.

Allan has more than three decades of experience in the office supplies industry. Prior to Nemo – where he spent almost 13 years – he worked for Mitsubishi Pencil and Kingfield Heath.

New MD at Posturite Fellowes Brands subsidiary Posturite has promoted its COO Chris Jones to the position of Managing Director.

Jones has been with the UK-based ergonomic furniture and accessories supplier for more than two decades.

His promotion comes two and a half years after Fellowes bought Posturite outright, following its acquisition of a 20% stake in 2017.

January/February 2023

Michael Görsch

New Managing Director at Staedtler Michael Görsch has joined German writing instruments manufacturer Staedtler as Managing Director. He takes over from Karl-Heinz Raue who, after four years in the job, will work in a consulting capacity with the vendor.

Adrian Reid

Senior departure at Büroring One of the co-Managing Directors at German office products dealer group Büroring has left the organisation.

Axel Hennemann stepped down at the end of last year with immediate effect. He was responsible for purchasing, marketing and sales.

Until a successor is found, his duties will be handled by fellow Managing Director Kai-Uwe Heuer, in charge of finance, logistics and IT.

NEWS

ON THE MOVE

15

GREEN THINKING

EU Commission makes progress on print cartridge legislation The European Commission’s Joint Research Centre (JRC) has published its first draft document as part of the process to introduce environmental legislation for imaging equipment and consumables. As OPI readers may recall, in 2022, the Commission rejected a Voluntary Agreement (VA) for the print sector, saying it did not go far enough in respect of the European Green Deal.

However, it paved the way for printing devices and supplies to come under the EU’s Ecodesign and Energy Labelling regulatory framework. The JRC is tasked with drawing up a preparatory study in relation to this project, which is expected to be published at the end of 2023.

A draft publication relating to the markets and technologies involved was recently made public, which gives some pointers to the EU Commission’s thinking and

priorities for this Ecodesign legislation. For example, some aspects of the now-defunct VA may be included in the new measures. These involve: • • • •

Design for recycling and easy dismantling of devices Availability of spare parts for devices Availability of software and firmware updates Cartridge design requirements, in terms of reusability

There is a section in the draft discussing best available technologies (BAT) for devices and cartridges. These BAT can be considered something of a base level which must be equalled or bettered in the actual legislation. For cartridges, BAT are considered in areas such as page yield, material efficiency, reusability and waste avoidance.

ODP agrees to cut plastics

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The ODP Corporation (ODP) has agreed to reduce the amount of plastic used in its packaging following talks with sustainable investment firm Green Century. ODP – which operates the Office Depot and OfficeMax retail brands in the US – has pledged it will reduce plastic packaging associated with its private label products and e-commerce shipping operations by 20% below 2022 levels by 2027.

Green Century said this made ODP “one of just a handful of major global retailers to put out an absolute plastic packaging reduction goal”.

In other news, the company was recently named a 2022 Safer Choice Partner of the Year winner in the Distributor category by the US Environmental Protection Agency (EPA).

ODP picked up the award for its Highmark ECO cleaning product line, which includes EPA Safer Choice multipurpose, bathroom, glass, carpet and degreasing solutions. Highmark products are manufactured in the US in partnership with a certified non-profit business which employs blind and visually impaired people.

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COS invests in electric vans

Leading Australian dealer COS is to convert its delivery vans in Canberra to electric vehicles in early 2023.

Following a trial in the nation’s capital over the past few months, the fleet will shortly switch to electric.

The move is part of COS’s sustainability plan that will see it reach net zero for its operations and run on 100% renewable energy in 2023.

Brother has recycled 40 million toner cartridges globally since the launch of its programme in Europe in 2004.

The OEM has four recycling centres – two in Europe (Wales and Slovakia) and one each in the US and Asia.

Of the 40 million cartridges customers have returned, Brother said 86% had been remanufactured using its “market-leading process”. The company said any parts not reused are recycled.

“Our waste hierarchy is simple,” said Craig McCubbin, Managing Director of Brother Industries UK and Brother Industries Slovakia. “We want to reuse as much as we can. In 2021, our remanufactured toner cartridges had a 33% lower carbon footprint than new ones. And by remanufacturing in the way we do saves approximately 5,300 tonnes of CO2 globally every year.”

Sustainability award for edding

GREEN THINKING NEWS

Brother reaches milestone

Writing instruments manufacturer edding has won the German Sustainability Award for Design for its EcoLine range. This portfolio of products was first introduced in 2009 and, among other things, uses post-consumer plastic and renewable raw materials.

The emissions resulting from the production and sale of the EcoLine have been offset since 2020, and today the entire production is climate neutral. Work is currently underway to make the whole company carbon neutral.

Pilot UK partners with ocean charity

Nespresso introduces compostable pods Coffee giant Nespresso is set to pilot compostable capsules. The manufacturer said that three years of R&D have been put into creating a home compostable paper-based pod that delivers high-quality coffee.

The capsule features proprietary technology, including a biopolymer lining which protects the coffee from oxidisation. The products – compatible with Nespresso Original machines – will be piloted in the Swiss and French markets in the spring of 2023 and are expected to be launched in several other European countries during the following 12 months.

The capsules are certified for composting, both home and industrial, by international certification body, TÜV Austria. In some countries, including France, they are accepted in public biowaste bins.

January/February 2023

The Pilot Pen Company (UK) is supporting the Marine Conservation Society. Starting in January 2023, Pilot Pen will donate 5p (6¢) to the leading ocean charity from the sale of every B2P (Bottle to Pen) Gel rollerball and B2P Ecoball across all business channels.

Launched in 2009, B2P pens are made of at least 86% recycled bottles and now include reclaimed ocean plastic too. “We hope the contribution made through sales will go towards aiding the charity in its amazing work, from beach cleans to its education programmes,” said Adam Smith, Marketing Manager at Pilot Pen.

17

SMALL TALK

2022 wrap-up The last two OPI Talk podcasts of 2022 touched on some recurring topics. They also took a quick peek at 2023 and what might be in store

Paper manufacturers had a record year, but what about the resellers selling paper?

Steve Hilleard: I’ve been at industry events where paper manufacturers were sharing tables with some of their big reseller customers. Jokingly, over a few drinks, people started talking about price increases, and I heard resellers saying on more than one occasion: “Quite frankly, it doesn’t matter what you put the price up to, if you can’t supply me any paper, then the conversation is somewhat irrelevant.” Fair point.

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Perhaps we’ll get a surprise [with Staples], something a bit left-field we’re not forecasting

18

Predictions for 2023…

Andy Braithwaite: I’ll be really interested to see what happens now with Staples. It’s five years since the Sycamore Partners acquisition and I don’t see an obvious exit route for the businesses involved (US Retail, US B2B and Canada). So, perhaps we’ll get a surprise, something a bit left-field we’re not forecasting.

A couple of years ago, a group of independent dealers bought the Office Depot retail chain in France. Something along those lines maybe?

OPI’s Steve Hilleard and Andy Braithwaite discuss 2022 and what lies ahead

The issue of dealers and product content.

Charles Kennedy: Dealers want control of their content.

There’s so much we sell, and so much more we want to sell and promote, but how we do that currently is very clunky. I totally appreciate where the wholesalers stand – they’ve put the money and the time in to create the content.

But they also understand the need for us dealers to have our own content.

What I’m hearing is that they’re willing to be a part of [a new journey]. How far it will go is the big question. But they understand the necessity. This world is changing fast, and I hope they’ll work with us on that evolution. I also think it’s really interesting what ECI has done [acquiring ES Tech] – it’s a big shake-up.

Dealers want control of their content

Charles Kennedy of Kennedy Office accepting his Professional of the Year North American Office Products Award at Industry Week 2022

Return to the office – for coffee and perks Let’s say this company has 250 employees or so. It’s created a pantry to give away drinks and snacks because it made the announcement that, as of 1 January 2023, everyone must work in the office at least four days a week. The aim is to find extra perks for staff [to sweeten the pill].

An interesting snippet in this context is that the boldness of coffee brews is changing.

And this is because people from ‘the north’ like their coffee stronger. So, as they move down to North Carolina, they bring their coffee tastes with them. Roasters in our area are saying they’re selling bolder, stronger coffee blends than they used to.

BIG INTERVIEW

Poised for GROWTH

O

It’s been almost three years of first building, then steadying the OT Group ship, the past two under the captaincy of Andrew Jones. But now that ship is ready to sail, he says

www.opi.net

n a cold morning in early January, OPI CEO Steve Hilleard met up with Andrew Jones in Ashton-under-Lyne, just outside Manchester. Jones has been heading up OT Group for just over two years. He was drafted in from a division of parent company Paragon Group which bought OfficeTeam, ZenOffice and the assets of Spicers – formerly all part of the Spicers-OfficeTeam Group (SPOT Group) – for £2 million ($2.4 million) in May 2020.

The task? Bring them together, make them bigger and better and, of course, profitable.

With plenty of turnaround expertise but no industry experience, Jones surrounded himself with a leadership team that had this valuable background knowledge and, as he says, “knew what had to be done”.

One of these individuals is Group Sales Director Stuart Derbyshire who joined Jones and Hilleard part-way through their conversation. He started at OT Group roughly the same time as Jones, in January 2021, having previously worked at Office Depot Europe and Guilbert UK for 20+ years.

20

OPI: Andrew, you’re not what we call ‘an OP veteran’. Can you give a brief snapshot of your career pre-OT Group?

Andrew Jones: Sure. For many years – including my three-year stint as UK Managing Director of Paragon ID and before joining OT Group – my job had been to add value to the organisations I worked for or with.

I started out my career in the automotive industry, working for companies including

Photography by: Paul Fairbrother Toyoda Automotive and International Rectifier Automotive, where I was lucky enough to be able to work across most functions of an organisation. This provided me with the skills and knowledge of key areas of the value chain.

I began in engineering and spent a lot of time in Japan and China working closely with customers and contract manufacturers on product design, new product development and total quality management. Following this, my family and I moved to the Netherlands where I worked for TomTom, supporting the setup of its automotive division.

I moved back to the UK in 2012, working for an organisation that designed, developed and manufactured hydrogen fuel cells for the automotive, industrial power and consumer electronics industries. I headed up the global operations and supply chain, which sat across all three divisions.

Before Paragon, I worked as an Associate Director at financial consultancy firm Grant Thornton. That paved the way for working on M&As and the subsequent integration, consolidation and turnaround of businesses which were challenged with either growth or profitability – something I continued when

BIG INTERVIEW Andrew Jones

That was my goal at OT Group – stop the bleed of cash and focus on profitability joining Paragon in 2017. Then, at the end of 2020, I was approached by Group CEO Sean Shine about “another interesting project”. And, as they say, the rest is history...

OPI: In the middle of a pandemic.

AJ: Absolutely. When I joined in early 2021, we had just gone into another lockdown.

About 80% of the workforce were on furlough at that point and we had to make some very challenging decisions to maintain the longevity of the business.

Paragon had invested a significant amount and we needed to ensure we could stand on our own two feet and build a sustainable business for the future.

In hindsight, the lockdown probably helped us, as a lot of our customers were working from home or they were also furloughed.

This gave us the breathing space required to map out the business, develop our plans and initiate key action.

We were also able to support Paragon in rolling out COVID test kits for the entire UK. At one point, OT Group was delivering over 35% of all kits ordered online.

January/February 2023

OPI: Quite a high-flying career. And then you got ‘dumped’ into this industry.

AJ: (laughs) That’s one way of looking at it!

I saw it as a great opportunity to disrupt a sector perceived to be quite traditional and an organisation which certainly required significant change – this had been my sweet spot for the previous ten years.

I’ve always spent a lot of time building high-performing teams, along with focusing on redesigning organisations and developing new products and services which set up a business for future growth. That was my goal at OT Group – stop the bleed of cash and focus on

profitability, but also drive Paragon’s strategy, which is to double in size every three years and become the number one or two in the chosen market. This is what we’ve been trying to do relentlessly over the past two years.

21

Andrew Jones BIG INTERVIEW www.opi.net

OPI: Tell us about the make-up of the group.

AJ: Under OT Group now, you have OfficeTeam, Office Depot UK and Ireland, and Spicers UK and Ireland. Then there’s ZenOffice which is both a reseller of business supplies and an MPS provider. We have more than 7,000 contract customers and over 800 dealers, all serviced by a workforce of just over 500 OT Group employees.

In terms of physical footprint, we occupy about 700,000 sq ft (70,000 sq m) of warehousing space across three floors here at our HQ in Ashton-under-Lyne – that’s one of the biggest, if not the biggest, operations in the UK business supplies industry.

Over in Ireland, our 100,000 sq ft Dublin distribution centre services the Irish dealer community and contract customers. We also have several regional offices in the UK in addition to various satellite offices up and down the country that we share with Paragon.

22

OPI: What did you find when you first joined and what have been the core milestones in the almost three years since the demise of Spicers?

AJ: When Paragon acquired parts of SPOT in May 2020, we didn’t buy the UK wholesale business. But there was a real concern that the wholesale market could become uncompetitive and a resounding requirement within the dealer community to have choice and flexibility across the supply chain.

We introduced OT Wholesale as part of the newly formed OT Group and gradually built the business to where it is today. Had we gone out with a big marketing campaign to

say we’re open for business, we’d have failed quickly. We needed to focus on building the core foundations of the organisation in order to position ourselves for long-term growth.

This has included getting the right people in the right positions, extending the breadth and depth of our product ranges and investing in the appropriate technology. All in an effort to consistently get the right products at the right price and deliver them on time – which really is what a wholesaler should be focusing on.

This took us into early 2022. It was painful, particularly during a pandemic. Keeping the cash in the business and building up our reputation and relationships with strategic partners, be those dealers or vendors, was a challenge. But we had to earn back their trust – being honest and acknowledging what we can and can’t do – until we’re ready.

The acquisition of the Office Depot UK and Ireland contract business in September 2021 was certainly a milestone. One of the key elements of the purchase was Depot’s automation and the facility here which gives us the ability to grow. We closed down Smethwick and transferred almost 19,000 SKUs to Ashton.

All at a time when the sales organisation was going through a period of incredible flux.

It demonstrated intent and a commitment to grow our market share significantly, as did the relaunch of the Spicers brand in July last year – with the timing right to engage with the market at that point.

OPI: What about the longer term?

AJ: Since its inception, our wholesale business has grown from zero to 8% of total market

OPI: You mentioned ZenOffice earlier, which seems to be stuck out there on its own a bit.

What’s the plan for this operator?

AJ: ZenOffice is a great business with a great culture. Following the move of our HQ from Smethwick to Ashton – which is only five miles down the road from Zen – it was logical to bring the Zen team into this facility too.

OPI: Let’s talk about OfficeTeam and Depot.

You had a big win in late 2021 with the government long tail contract, which you were awarded alongside B2B platform Unite.

AJ: Yes, that was our most exciting opportunity last year, although we have been quite successful over the past six months with some other big contracts. The framework – the Crown Commercial Service Tail Spend Solution – is valued at over £1 billion and there’s been huge attention on this from the UK government.

It went live in February 2022, but due to the nature of public sector contracts, it doesn’t necessarily mean everyone joined it at that time. We essentially spent last year building up the solution and the appetite among government bodies and entities.

It’s a four-year award which is slightly unusual for the public sector – typically it’s three. There’s a strong vision from the government to take £1 billion of cost out of its supply chain, with this framework being seen as a key enabler. We want to engage with customers and show that, by moving onto this tail framework, they can reduce their costs.

It’s gathering a lot of momentum for us and we have dedicated teams focusing on it.

OPI: Stuart, you’ve just joined us and, I guess, you know Office Depot better than most. How is this particular entity trending and what are your plans and aspirations?

Stuart Derbyshire: When we acquired Depot’s UK & Ireland’s larger contract business, it hadn’t been a main focus for Aurelius – the Viking channel was the key emphasis – so it was a bit of a gamble. But it’s fared well, with the teams from both sides being supportive before and after the move to OT Group.

There were a few losses before the transition.

However, the OT and Office Depot teams, working closely together, have retained all the business that did move over and it has seen attractive growth.

I’d be very disappointed if we didn’t achieve significant [wholesale] growth within the next 18 months Our new contract operations in Ireland – somewhat of a sleeping giant in the old Depot, partially because it had no distribution centre in Ireland plus the COVID impact – are doing particularly well with double-digit growth. We have the benefit of the Citywest distribution centre in Dublin – a site occupied by Spicers Ireland, Paragon as well as Depot now.

OPI: Office Depot Ireland was a big operation a few years ago.

SD: It was – about €25-€26 million – but it had reduced quite significantly. We have a great team there, added to it and brought in additional resources – the inside sales team, for instance. We’ve also realigned the whole operation.

It’s doing extremely well and we have big ambitions for Ireland to grow further in several different verticals, including banking, retail, technology, manufacturing and the public sector.

We’re particularly keen to align with US FDI organisations because, as we all know, this is big business in Ireland. In the meantime, however, where we’ve been especially successful is in growing the smaller accounts with our inside sales organisation team.

OPI: What about Depot in the UK? SD: We’ve seen some good recovery post-COVID. Here

Stuart Derbyshire

January/February 2023

OPI: The contract will be serviced through your SmartPad solution, is that correct?

AJ: It is. As previously communicated in the press, we invested a seven-figure sum into the development of SmartPad and I would argue it was instrumental in us winning this framework.

The tender process was incredibly competitive and we were delighted to finish in the top two – despite well-known e-commerce players being part of the process.

BIG INTERVIEW Andrew Jones

share, with a customer base today of over 800 spending dealers. We have big ambitions and I’d be very disappointed if we didn’t achieve significant growth within the next 18 months.

We’ve invested a huge amount into our fully integrated ERP solution, which we’re currently bedding in and ironing out any final implementation issues. Massive investments have also gone into automation, product range expansion and stock we’re putting on the shelves.

23

Andrew Jones BIG INTERVIEW

too, we’ve redesigned our sales organisation, merging Depot and OfficeTeam just under a year ago. It was never a long-term strategy to run the teams independently. But we wanted to approach it carefully, without staff fearing for their jobs while we reviewed the customer base and market intelligence, and then aligned to implement a ‘go forward’ structure with a focus on both key verticals as well as a single national sales team.

We still trade as Office Depot and OfficeTeam. It’s a challenging sector where local needs to be balanced with national, so whatever we do has to be thought through carefully which typically involves a split approach. Ultimately you want to add value.

www.opi.net

OPI: Does it still make sense to have the two brands then?

AJ: In a word, no. We now have a number of contract brands that essentially deliver the same proposition. This causes confusion in the marketplace and with our customers, and it dilutes our presence in the market.

This year, we will be bringing our contract businesses together under a single brand, making us simpler to deal with, enabling a stronger brand awareness strategy and putting us in a better position for future acquisitions.

We can’t give any further details now, but we’re excited about the opportunities this brand development will bring soon.

24

OPI: What are your plans for the Spicers business, particularly here in the UK? AJ: Now that we’re nearing the end of implementing our improvements, our new ERP system, Dynamics 365, will give us the capability to provide the level of service we’ve been seeking. We’re going to be easier to do business with, we’re going to be competitive and we can provide a lot more in terms of service to customers – existing and new.

Meanwhile, our strategy around SmartPad and tail management offers access to more products than we’ve ever been able to sell before and we’re transitioning that capability into the wholesale business.

We are almost there – and when we are, we’ll be open for business, aggressively going after market support and then strategic partners.

SD: At our dealer forum in November, our objective was to find out what customers wanted today and needed for the future. We have to understand their challenges and pain points and shape our offering accordingly.

OPI: So what do they want?

SD: In a nutshell, they want the relationship to be simple and straightforward as well as

competitive. What do we mean by competitive?

They weren’t interested in incentives, for example, which was interesting and also a little surprising. Best cost, best solution and best service in a model that suits them and where we do as much of the heavy lifting as we possibly can. “Take the pain away from me” was the overriding takeaway.

On that note, we shouldn’t forget the strength of 5 Star. We believe we are unique in that we have our own product range, exclusive to UK and Irish dealers. It’s fully owned by OT Group which enables us to be agile when it comes to range expansions and providing margin enhancement opportunities to our dealers.

We want to extend this even further, working with our partners. But we can’t do that unless we really grow in the dealer sector.

It won’t be a one-model-fits-all, but we’re trying to keep our service offering simple so that we can keep our cost-to-serve low and don’t end up with an army in the back office.

OPI: You’ve made several references to your new ERP system. How disruptive has this been and what does it mean for your dealer partners?

AJ: We went live at the end of November and it’s been challenging, no doubt about it.

As with any project of this size and complexity, not to mention the timeframes in which we have delivered it, it was inevitable we would come across unknown factors and challenges during the implementation.

So yes, there has been disruption for some of our customers, but we have stayed close to them with open communication throughout the process. We’re almost back to pre-go-live sales and volume, and expect to drive out significant new features in the coming weeks.

I would like to thank our dealers and customers for their patience and support during this transitional period. I am confident that, with the continued focus our teams are giving to this project, they will very soon be able to enjoy some of the benefits the new ERP system will bring.

SD: As for your dealer question Steve, the new system makes us more cost-efficient because it strips a lot of complexity out of the business. But equally, it enables us to bolt on tools that we wouldn’t have been able to add with the old system.

Essentially, some fairly simple things like tracking or self-management of returns or billing. Not rocket science, but all functionality which creates a better customer experience.

OPI: How does this tie in with your relationship with your 3PL partners?

SD: The 3PL bit is a good example of the difference the new ERP makes – mainly to the dealer community, to be honest, although applicable within our contract business as well.

For example, dealers might want two or three different ways to have a delivery. It could be a fixed-time delivery, key drop delivery or we could be delivering direct to their customer – to a desk, to reception or to goods-in, etc.

Our old system couldn’t have coped with those details. Now the information is in the scanned label, which gives us more opportunities to be able to fulfil various levels of service, as well as being able to share this back via our technology, allowing for improved self-service and a better customer experience.

The timing is now right to take our business to the next level OPI: Your primary competitor EVO has recently bought a dealer that was on the brink of administration. There have been other changes too, including a move at the top. How poised are you to take advantage of any turmoil which may arise?

AJ: We understand turmoil – we’ve gone through plenty of it ourselves. The market is overcrowded and I’m sure this won’t be the last M&A we hear about this year.

We don’t spend too much time dwelling on what our competitors are doing, to be quite honest. Our focus has been solely on communicating our vision and mission so that the team fully understands the actions we need to take and work together to achieve our growth aspirations.

However, if businesses do find themselves looking for another option – we are now in a

strong position to provide a viable – better even – alternative supply chain solution.

OPI: That brings us nearly to the end.

To wrap up, what’s your vision?

AJ: OT Group’s vision is to double in size every three years. We’re looking at £350 million by 2025, more than a doubling of our revenues since 2022.

I believe what the team has done since the Paragon acquisition is nothing short of outstanding. We acquired and integrated Office Depot; closed down Smethwick; opened our national distribution centre in Ashton-under-Lyne; invested heavily in SmartPad, upped our product scope by 90,000 SKUs in the process; relaunched Spicers; invested in automation; and are just in the final stages of delivering a world-class ERP solution. We’ve effectively redesigned and restructured everything.

The timing is now right to take our business to the next level and focus on gaining significant market share over the coming months and years.

BIG INTERVIEW Andrew Jones

For much more from the interview, including topics such as OT Group’s relationship with dealer groups, the challenges of hybrid working as well as onshoring and sustainability, see our Xtra content in the January/ February issue on opi.net

OPI: You’re clearly very proud of your team and what you’ve achieved.

AJ: I am, absolutely. What we’ve done as a team is to simplify everything – day by day, week by week. We had a bold and broad vision, but you have to break that down into small steps to achieve it.

I don’t come from this industry, but I’ve had the incredible opportunity to build a team of people who know it inside out and have strong long-standing relationships with our customers.

They have demonstrated the ability to drive much-needed change across the business.

But of course, there’s plenty more to do – there’s no such thing as the finished article.

January/February 2023 25

FOCUS

More of

THE SAME?

The business supplies industry in 2022 was hit by high inflation, rising fuel costs, labour shortages and supply chain issues. Is there a reason to be more optimistic about 2023? OPI’s Andy Braithwaite finds out...

I

n a recent podcast, OPI CEO Steve Hilleard called 2022 a “chaotic” year for the business products sector. Few would argue with this description. As we kick off a new year, industry leaders will be hoping the budgets they have put in place will be met or exceeded over the coming months. Although, as we know, unpredictability has been something everyone has had to cope with in the past three years.

“At the end of 2019, no one could have foreseen the COVID-19 pandemic on the horizon, and I see 2023 shaping up similarly,” says Mark Leazer, Executive Director at US national accounts organisation AOPD. For Leazer, three factors come into play: the economy, the rate of back-to-office, and the global health situation.

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MACRO FACTORS DOMINATE Using what he describes as a combination of “the best intel possible” and his “gut” to plan ahead, Leazer believes that a) the economy will “putter along” and not fall into a severe recession; b) return-to-office trends will continue to improve but not return to 2019 levels; and c)

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“Economy will putter along” Mark Leazer

COVID or other health issues will “rear their ugly heads”, although not as severely as in 2020.

Avery President Mark Cooper broadly concurs. “The three big influencing factors remain inflation, the degree to which we will observe a recessionary economic environment and the impact of hybrid working on both office occupancy and consumer behaviour,” he states.

He adds: “In our sector, there’s a continuation of inflationary pressures, particularly in the paper-related segments, with input costs rising while we see further capacity constraints. On top of that, with the signs of a recession looming, we could witness more downward pressure on demand.

“One likely outcome from the move to hybrid and remote working has been the lower usage of office supplies. This has created changes in consumer behaviour, with higher levels of digitalisation – and this is unlikely to go back.

“On the positive side, while office occupancies have not reached more than 50% of their pre-pandemic levels, I am optimistic we will see this rise during 2023 – which could help create an upturn in demand for office supplies.”

“Continuation of inflationary pressures”

Mark Cooper

The Year Ahead FOCUS

“Cautiously optimistic” David Guernsey

Industry veteran David Guernsey notes that a “lack of stability in several key areas”, such as the impact of politics on the economy, is “an overarching concern”. To put it mildly, he states, “it’s difficult for CEOs to navigate through a level of unknown I don’t recall ever seeing before”.

Despite this, plans have to be made, of course, and Guernsey says he is “cautiously optimistic”. He adds: “In the main, we do forecast growth; we see economic activity turning up marginally and factored this into our expectations for 2023.”

This is based on several assumptions. These include: cost increases abating “considerably” as 2023 unfolds, with prices rolled back in some categories; the supply chain situation and access to product continuing to improve; end users being more reticent than in 2022 about accepting additional price increases; and improved return-to-work trends – although in Guernsey’s core market of Washington (DC), office occupancy is still relatively low.

However, in a nod to the “ever-growing uncertainty”, Guernsey adds the caveat that “all bets are off” if “supply chain chaos” makes a reappearance. At the time of writing this feature, it is still too early to say what impact the loosening of COVID restrictions in China will have on the country’s manufacturing and shipping sectors, but there certainly seems to be the potential of a curve ball being thrown at some stage.

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BLEAKNESS IN EUROPE While current economic indicators from the IMF point to the US avoiding a recession, the picture from Europe is somewhat bleaker as it bears the full brunt of soaring energy prices (see also Spotlight, page 30).

OP veteran and non-Executive Director at wholesaler soft-carrier, Peter Damman, for instance, warns that 2023 is “the year the recession will finally kick in”.

“Even experienced economists cannot explain today’s environment,” he argues. “Geopolitical issues, an energy and climate crisis, hyperinflation with rising interest rates, low consumer confidence, and governments which keep printing money like crazy. These are enough ingredients for an enormous economic downturn.

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“Yet companies are still reporting satisfying results and the high streets and restaurants are full of people joyfully spending money. The only outcome of this, in my view, is that we cannot avoid a recession coming in 2023.”

The business supplies industry, according to Damman, is “highly dependent on economic growth and stability”, with the number of white-collar workers – whether working in an office or in a hybrid model – still a “key element” of product demand. “A recession, large or small, will have a huge impact on the volumes sold.”

Denis Bonnet, Senior Manager of European Business Accounts at stationery vendor BIC, points to an era of “B2B disruption” that has developed due to COVID lockdowns, digitalisation, hybrid working, the shift to online, M&A activity – and now the entry of an inflationary cycle. As such, he is not forecasting growth in the B2B OP channel, at least for ‘traditional’ products for “the next few years”.

STEPPING INTO THE UNKNOWN For Nicolas Potier, CEO of leading European reseller Bruneau, there are still a lot of significant unknowns which could tip the market one way or the other. These include the level of resilience of the European consumer, the capabilities of local economies to circumvent the energy crisis and the evolution of the COVID situation in China.

“B2B disruption”

Denis Bonnet

However, what was known at the end of 2022 will “clearly negatively affect” economies in Europe, Potier believes. His predictions are: selling prices will rise, but not by enough to offset lower volumes; purchasing price changes will be varied and will lead to “very tense negotiations” between vendors and resellers; and businesses will face higher operating costs (due to wage increases, for example) and these will make a healthy bottom-line performance “a bigger challenge than ever”.

The greatest opportunities in the changing business supplies climate lie with the manufacturers, asserts Damman which – in his opinion – “control the market”.

“They are in a position to decide in which channel or to which customer they sell their products, or they can even go direct via an e-commerce platform,” he says.

“Recession “Significant is coming” unknowns” Peter Damman

Nicolas Poitier

“Consolidation will remain constant” Harry Dochelli

Dochelli further mentions the possibility of The ODP Corporation (ODP) “re-engaging in dealer acquisitions”, something the reseller pointed to at its investor conference last November (see Focus, OPI December 2022, page 26). How active ODP is with respect to this strategy might boost company valuations, particularly in certain secondary markets where it doesn’t have much coverage so far.

In Europe, Damman doesn’t predict such an exit route, especially given the “diminished interest in our industry” from private equity buyers. “There are many companies for sale at the moment, but they can’t seem to find a buyer,” he notes. “The valuation expectations are too high and we will not see multiples of the past in 2023. It will be time to become realistic again.

“Hopefully, there will still be more consolidation in the coming years. In a small and declining market, there is no room for many players. With fewer operators, the market will stabilise and pricing and margins can remain healthy,” he adds.

Danny Berendsen

as supporting diverse-owned businesses and improving sustainability in purchasing.”

Danny Berendsen, European Sales Director at visual communications specialist Bi-silque, concurs, saying many customers will be looking to source “sensibly and sustainably”. “Procurement is not just about the best price or best deal, but reducing the global carbon footprint as well,” he says. “We see these considerations more and more, especially from customers in Scandinavia, the Benelux, Germany and the UK.” As part of this, Berendsen highlights the trend of sourcing products locally, something he expects will increase in 2023. This would not only reduce the carbon footprint linked with transportation, but also help with supply chains. Therefore, purchasers need to find their sweet spot on a ‘procurement triangle’ that comprises sustainability, availability/lead times and price.

CATEGORY EXPANSION It’s not specific to 2023, but something which will arguably gain further traction in the business products reseller channel is category expansion – particularly as the decline in core OP accelerates due to fewer office workers and increased digitalisation.

For AOPD’s Leazer, dealers will continue to jump on this. “Categories will include safety, packaging supplies and a renewed emphasis on print and promo,” he says.

“Breakroom will continue to evolve with the changing in-office workspace, as will furniture. It will be interesting to see if furniture continues its torrid pace in 2023, but I think it will slow somewhat.”

The final words go to Tim Beaumont, Managing Director of UK dealer group Nemo Office Club: “Essentially, the direction of travel for the industry is unlikely to change fundamentally in 2023,” he states.

“There will be an industry move towards greener product and distribution options; e-commerce and web store solutions will need to evolve to keep up with competition from the marketplace; and there will be a need to protect profitability, either by taking cost out of the business, significantly increasing prices, or through M&A.”

“Direction of travel remains the same” Tim Beaumont

January/February 2023

FOCUS ON ESG Another topic likely to be in the spotlight this year is sustainability and the wider ESG agenda, which Dochelli believes “will grow in importance” in 2023.

Referring to companies’ procurement strategies, Chris Costello, EVP of Worldwide Strategic Accounts at Amazon Business, notes: “Buyers will likely continue to build purchasing strategies that assist ESG goals, such

“Source sensibly and sustainably”

FOCUS The Year Ahead

“Those in the middle of the distribution chain, such as wholesalers and buying groups, will be in a much more difficult situation, partly because manufacturers seem to have forgotten their value and do not always give them the best support. It’s then tricky to stay competitive and remain relevant to your dealers or customers.”

He adds: “Small resellers will also see challenges as they lack the volumes to be a force in the market. The only way to solve this is by merging with competitors to achieve at least an ‘interesting’ size.”

Indeed, further industry consolidation was something that executives on both sides of the Atlantic say would be a trend in 2023. In the US, Essendant President/CEO Harry Dochelli believes M&A in the jan/san segment – where the likes of Envoy Solutions, Imperial Dade and BradyIFS have brokered dozens of deals in the past 12 months – will remain active.

In the independent channel, meanwhile, he predicts that consolidation will “remain constant as dealers struggle to deal with the changing market and lack of technology investment”.

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SPOTLIGHT

Following COVID and supply chain pressures, Europe is now in the midst of a cost-of-living crisis fuelled by high energy prices. OPI’s Andy Braithwaite takes a look at the situation, with a special focus on his home country of France

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o say economies across Europe have been hugely challenged over the past three years would be quite an understatement.

COVID lockdowns – beginning in March 2020 – supply chain issues that first appeared in 2021 and continue to this day, and then the war in Ukraine which started in February 2022 have all played their part in stifling growth and fuelling soaring inflation. The latter also substantially contributed to a Europewide energy crisis, with ballooning gas and electricity prices.

According to recent numbers published by Eurostat, headline inflation in the eurozone dropped to 9.2% year on year in December 2022. It represented two consecutive months of declines from a peak of 10.6% in October. This is partly due to a steep drop in

benchmark natural gas prices, which stood at €76 ($82) per megawatt hour (MWh) at the end of the year compared with a staggering €350 per MWh in August (although still significantly higher than the price of around €18 at the beginning of 2021).

With relatively mild weather in Europe so far this winter, and consumers and businesses reducing their energy consumption to rein in costs, there is a feeling the worst is now over.

NO END IN SIGHT However, with the war in Ukraine still raging, Nicolas Potier, CEO of pan-European reseller Bruneau, does not see an end to economic pressures. “There is great uncertainty from a geopolitical standpoint and, as a consequence of sanctions, a lot of tension around energy raw materials,” he states.

“Therefore, Europe is probably going to continue to suffer from very high energy prices. This is a huge burden on all our economies, which will exist as long as the war and the sanctions continue.”

Potier says inflation is a direct consequence of the energy situation as well as the “ripple effect” of the COVID crisis. He also points to “ultra-expansionist” policies of central banks

Europe has been in a recession for several months and economic activity is decreasing everywhere

GOVERNMENT AID In France, it is impossible to switch on the news without hearing about the cost-of-living crisis. But overall, inflation has been slightly lower than in other European countries, standing at around 6% at the end of last year.

THE WEAK WILL GET WEAKER Looking ahead to 2023, he states: “First and foremost, the war in Ukraine is not over. In addition, Europe has been in a recession for several months and economic activity is decreasing everywhere. Businesses that were already weakened in 2022 are going to face financial challenges.”

Proy believes higher expenditure on energy will also be a factor. “Companies will double down on cost-reduction measures in non-strategic areas on their balance sheets.

What’s more, energy expenses are difficult to control, and reducing consumption will never offset the impact of price increases. The tariff shields do not apply to everyone and won’t absorb all the extra costs.

“Unfortunately, business supplies are not strategic purchases. We saw public and private sector organisations focus increasingly on digitalisation projects to overcome paper shortages and price surges in 2022,” he adds.

“Also, work-from-home is part of our daily lives now and I fear it will cause further reduction in the consumption of paper and paper-based products in favour of digitalisation. We must therefore find – and quickly – other growth opportunities.”

Looking ahead to the rest of the year, and particularly the all-important back-to-school period, Stéphanie Verrier, Chair of French stationery manufacturers association AIPB says there is still “a lot of uncertainty”.

She comments: “One thing is certain – making the same product today costs more than it did yesterday. Raw materials, energy, transportation, personnel – everything is going up. How, then, do you continue to manufacture while maintaining a price the market will accept? This is a real issue for vendors in our sector.”

January/February 2023

“Secondly, it will be vital to safeguard the margin levels we’ve achieved during the last 12 months. This is key in order to cover rising personnel costs which we might not be able to pass on fully to our customers as a result of the growing level of competition.”

This is partly due to the government pumping €24 billion into energy ‘tariff shields’ in 2022, with the figure set to rise to approximately €45 billion in 2023 after new measures were announced in December.

It does not mean that everything was rosy in the country’s office supplies market, however.

Summing up 2022 in his capacity as Chair of trade association UFIPA, Alkor Group Managing Director Laurent Proy says it was a “singular” year.

“We all remember successive double-digit price rises,” he notes. “The shortage of raw materials and breaks in the supply chain impacted our business models and led to clients – who were not always understanding – being dissatisfied.”

SPOTLIGHT Energy Crisis

over the past decade, with low interest rates combined with quantitative easing measures.

“For years, countries – especially France, Italy and the UK – have ‘bought’ their near-term functioning and have soothed their citizens with future taxpayers’ money in the form of huge debts. These are costing more and more to finance because central banks have started – albeit too late – to raise interest rates and decided not to buy state debt anymore.”

Nevertheless, Potier recognises that European economies had “an acceptable run in 2022”, although he urges caution: “This is largely due to financial interventions, which will have to stop.”

Richard Scharmann, who heads PBS Holding, another organisation operating in multiple European markets, adopts a pragmatic view regarding the impact of the energy crisis. “Rising fuel and energy prices hit us, of course, but we see it becoming a ‘new normal’ that we should be able to deal with,” he says. “Competition is still low and passing on these kinds of increases is somewhat possible.”

However, this may not be the case going forward, he suggests. “The picture might change when more suppliers start to reduce prices, as we are beginning to see in the paper industry. Players could fear being left with high stock levels and start selling off aggressively.”

He continues: “Firstly, I expect inflation to flatten out over the coming months for our industry. The big question will then be around top line and volume development. Inflation saved us as we saw double-digit [volume] declines over the past two years.

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CATEGORY UPDATE

Get it

IN WRITING

In an increasingly digital age, traditional writing instruments have nevertheless proved perennially popular. This, coupled with an innovative approach, has given the category resilience in difficult times – by David Holes

L

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ast year was a difficult one for the business supplies industry as the world emerged from COVID-19, leaving economic and geopolitical turmoil in its wake. The writing instruments category, however, remained broadly positive, with several key players reporting good results and a bullish outlook.

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EUROPEAN CAUTION Horst Brinkmann, CEO at Stabilo, says that over the past fiscal year (ending 30 June 2022) the company recorded revenues of €215.8 million ($227.4 million) despite commodity price increases, problems with supply chains and consumer restraint. Overall, sales went up by 3.1%, with a strong double-digit rise in Asia. Conversely, in Europe, a promising first half of the year was followed by a noticeable slowdown in consumption.

As such, looking ahead, he adds a note of caution: “After a good start in Q1 of the new financial year, global fluctuations in terms of demand and incoming orders could still be seen. While we detect growth in the US and Asian markets, there is constraint among buyers in Europe in particular. In Germany, for example, around 70% of retailers expected poor Christmas business.”

Similarly in the UK, Wendy Vickery, Marketing Manager at Pentel, says that the market continued to face challenges throughout 2022, with the B2C sector specifically struggling to regain its pre-COVID figures: “However, we have noticed heightened volumes and value in the B2B space and online sales have grown.

“The education category, for instance, has shown good growth for Pentel over the past year, as schools are reinvesting in equipment after lockdown,” she explains.

“We’re also observing encouraging signs from independent retail customers as they continue to demonstrate their resilience and ingenuity in the face of one of the biggest economic challenges in modern times.”

At Pilot Corporation of Europe, Brand Communication Coordinator Cécile Poirot-Crouvezier adds that the writing instruments segment as a whole is stable in value terms. However, the company has actually seen increases in specific sub-categories: ballpoint pens, fountain pens, highlighters, markers, mechanical pencils, rollerballs and writing felt pens, for example.

Of these, the top best sellers were ballpoint pens, markers and rollerballs, with the latter heavily influenced by thermosensitive ink models from its FriXion range.

As Poirot-Crouvezier explains: “This is an area where Pilot is a leading brand and we are committed to defending our territory here, backed by a strong communication plan across all European countries. This is especially important during the back-to-school (BTS) period, with 40% of our total annual sales concentrated over a three-month timescale.”

THE GLOBAL SITUATION BIC paints a promising picture of continued growth around the world, according to Astrid Canevet, Senior Communications Manager for Europe & Asia Pacific: “In our Human Expression category, this was mainly driven by the core writing and colouring segments.

While we detect growth in the US and Asian markets, there is constraint among buyers in Europe in particular

January/February 2023

Specifically in the US, BIC has recorded strong double-digit sales growth over the past year, according to Holly Baum, Director of Sales for Office Products: “Office occupancy increases have translated into greater purchases of all core business supplies, including writing instruments.

“That said, emerging macro trends have impacted the business. These comprise a highly competitive labour market, rising costs due to record-high inflation, the continued need to invest in technology resources for remote and hybrid employees, and organisations tightening their operating budgets. Improvements to our supply chain have made us more efficient this past year, however, allowing us to meet demand.”

Zebra Pen is a Japan-based organisation, but as the company expands its global

MOVING FORWARD Despite many of the sector’s products sitting firmly in the ‘traditional OP’ box, this is not a category resting on its laurels. Innovation and diversification into untapped areas are key to finding relevance in an increasingly technology-obsessed society.

BIC’s Canevet says that, as part of the vendor’s Horizon Strategy to drive sustainable growth, the business is moving to a more consumer-centric approach and embracing creativity in all its forms. “We are tapping into new categories. With the acquisitions of the temporary tattoo brands Inkbox and Tattly, for instance, we are developing our ‘skin creative’ offers for which we see a lot of momentum.

“Additionally, we bought the reusable notebook Rocketbook brand which allows you to take notes, digitise them and then wipe them clear once no longer needed, so you can reuse the pages. It combines the advantages of handwriting with the opportunities of the digital world.”

In the US, BIC is reacting to the demand for value in the face of skyrocketing inflation levels.

Its Intensity Permanent Markers meet this remit, with their snap-cap design which locks them firmly in place, plus they’re resistant to drying out even if the lid is left off for over eight hours.

This saves money on having to frequently replace dried-out markers.

Stabilo has also been successful with items that work in both the analogue and digital worlds. One example is the EduPen Neo – a digital pen and app for the training of graphomotor and fine motor skills.

Coming up with the right new model is all down to understanding the end user better, says uni-ball’s Director of Product and Channel Marketing Jim Holland. As such, the company aims to directly communicate

CATEGORY UPDATE Writing Instruments

“The 2022 BTS season was solid in Europe, North America and Mexico, and we gained market share in all key countries. India and Africa continued to recover from the pandemic and we achieved high double-digit rises in these geographies. In Brazil, meanwhile, the strong recovery of the stationery sector should support a sound 2023 BTS period.

“In Europe, our results were boosted both by southern (Italy, Spain) and eastern (Poland, Romania) countries, supported by strong promotional activities. In France, we consolidated our leadership position, outperforming the market for the 16th consecutive year. We also maintained our number one brand status in the UK thanks to the robust performance of the pens segment, plus colouring felt pens and pencils.”

footprint, it’s a achieving growing market presence across North and South America, China, continental Europe and the UK. Director of Marketing Ken Newman refers to the US BTS period as softer than usual, with consumers conscious of inflation and focused more on critical needs and making very strategic purchases.

In general, sales have been soft over the past year in both dollars and, more specifically, units. However, as Newman explains: “These results are in comparison to 2021 where we saw a sharp surge as the market rebounded from the pandemic due to pent-up demand.

In my opinion, we should analyse the market relative to 2019, in which case unit sales are virtually flat, while dollar sales show growth caused by price increases.”

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Writing Instruments CATEGORY UPDATE

with the audiences it serves through its Consumer Insights programme. Interaction such as this enabled the business to, for example, react swiftly to increasing interest in ‘mindfulness’ activities during lockdown and ensure creative products including its POSCA Paint Marker were available in the places that mattered most.

He adds: “Specific to writing instruments, we are targeting a younger audience and wanted to develop something distinct from our ever-popular 207 Gel brand. By researching these opportunities, we arrived at a more minimalistic, thoughtful writing instrument design which has proven key to targeting a largely female audience. The outcome is our uni-ball ONE line that has stormed out of the gate in 2022 and we expect to see even better results this year.”

Instant success – the minimalist uni-ball ONE

KEEN FOR GREEN As in all business supplies categories, a focus on ecological issues is now vital and there are some key initiatives in this context. According to Pentel’s Vickery, sustainable stationery is probably the most influential movement

in the industry for many years: “What we’re witnessing is an irreversible course of action by manufacturers to reduce the impact their products have on the environment to an absolute minimum.”

In terms of specific models with eco-friendly credentials, BIC’s Ecolutions line of writing instruments is made from at least 50% recycled materials, with packaging coming from 100% recycled content. One example from this range is the Ocean Retractable Ballpoint Pen, made from recycled ocean-bound plastic collected within 50km of a coastline or waterway leading to the sea.

Ecologically sound packaging has become a key focus across the vendor community, with many companies aiming for recyclable, reusable or compostable materials in varying timeframes – it’s typically the most visible component to the consumer at first sight.

Refillable writing instruments are another point of emphasis, eliminating the throwing away of perfectly good items simply because they’ve run out of ink.

The ultimate goal, of course, is to be green and socially responsible across the board. Pilot, for example, won the 2022 European Office Product Award for Sustainability Excellence (see Event, OPI April/May 2022, page 42). This was based on its comprehensive strategy across the full spectrum of sustainability which went well beyond best practice while still preserving high standards of quality and innovation.

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HANDWRITING REMAINS KEY

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The demise of handwriting has long been predicted, yet – just like the paperless office – this hasn’t come to pass. Indeed, recent consumer research from Opinonway in France revealed that handwriting is far from obsolete, with eight out of ten consumers confirming it still plays an important role in their daily lives.

Only 4% said they never write manually, with 90% of respondents also confirming that handwritten notes allow them to better retain the information they contain.

Pilot’s Brand Communication Coordinator Cécile Poirot-Crouvezier refers to the countless virtues of handwriting: “It’s a powerful driver, enabling anyone to improve themselves, take a break during hurried lives and connect with others. Recent brain research shows that writing by hand helps children learn more effectively, while retaining information better afterwards.

“Our mission is not to compete with the digital technology which is now part of normal life, but to support and encourage the important act of handwriting as we move forward.”

Holly Baum, Director of Sales for Office Products at BIC in the US, takes a similar view, stressing that writing by hand should still play a key role in the classroom

as studies show that it activates complex motor and cognitive skills, while promoting and supporting reading fluency in younger children.

But it’s not just learning environments where manual writing instruments still have a role. While Wendy Vickery, Marketing Manager at Pentel, concedes volumes of everyday pens used in office settings have decreased, she adds that the convenience of writing a quick note by hand, demonstrating a point on a whiteboard or marking a cardboard box are not easily replicated digitally.

“Pens, pencils and markers combine creativity with practicality, and making a mark on paper or board remains a fundamental human instinct. Ask anyone if they’d prefer to receive a handwritten birthday card or an electronic message and they’d tell you without hesitation which one demonstrates the most thoughtfulness.”

CATEGORY UPDATE

Global education

AT A GLANCE

As economic woes and budgetary constraints tighten their grip, those that supply the education sector around the globe are seeing significant shifts in purchasing behaviour – by David Holes

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ith education budgets frozen or cut, and with parental wallets coming under increasing pressure, spending patterns in this category are changing.

From a US perspective, figures from The NPD Group’s Commercial Tracking data show that, for 2022, dollar sales in Q2 – the education buying season – grew 10% year on year. Similarly, sales during the traditional back-to-school (BTS) period in Q3 have grown 8% compared to the previous year.

However, while this sounds positive, these revenue increases were largely driven by higher average sales prices (ASPs), rather than a boost in volumes, with ASPs up 15% and 17% in Q2 and Q3 respectively.

These inflationary stresses are having noticeable effects according to ClassKit, a software company which supplies dealerships with the technological means to capture the market for educational products set down on the ‘parental supply lists’ sent out by schools.

As such, it has a unique insight into the trends currently playing out in this sector.

As President Jan Kilies notes: “There’s a move away from more expensive items – ring binders with index dividers and paper, for example – in favour of using several notebooks. Possibly because teachers realise reverting to cheaper options that worked in the past can still be relevant today. Additionally, schools are no longer asking for named brands for many items, with a focus instead on quality products that represent good value.

“Federal funds, particularly for the upper grades, are now increasingly being spent on classroom and student technology.

Laptops are replacing paper products, with a consequential shift away from traditional items which will likely impact the amount spent on pens, markers, erasers, etc. There’s even a move away from teaching cursive writing which will accelerate this effect.”

POST-PANDEMIC PRESSURES Operating out of Charlotte, North Carolina, FSIoffice has found that the education market continues to be strong. However, there have been significant changes in the types of product being purchased in a post-pandemic world, with items such as hand sanitiser, wipes and facemasks no longer in high demand.

The dealer’s CEO Kim Leazer further reports that additional COVID-related funds injected into the sector have dwindled and will be gone over the coming year. She says: “The areas still growing as a result of these funds are generally the larger ticket items like air purification systems, plus school and college furniture.”

At Independent Suppliers Group, EVP of Marketing Charles Forman agrees that recovery from the global pandemic continues to impact many facets of the education market.

It’s recognised there was a significant amount of learning loss, and school districts are looking for ways to help students catch up.

The US government, meanwhile, has invested billions in health and safety in school facilities, and new technologies are being used

The Nature View Collection by Whitney Brothers

WELLNESS AT SCHOOL Workplace furniture vendor HNI, for instance, is seeing an uptick in requests from the education vertical for wellness rooms and the products which support those areas. The US-based firm – owner of the HON brand – says these facilities are looking for soft seating that is comfortable and relaxed.

According to Senior Category Manager Whitney Potratz, these spaces are aimed at making students feel at ease and secure: “Using a soft colour palette within a warm, inviting and soothing environment creates a place for students to come and decompress throughout their day.

“The inclusion of technology within educational furniture is also rapidly changing in this sector and we have to be on board with it in smart, intuitive ways. An example would be the need to charge devices. Power is required everywhere to keep tablets and laptops topped up and functioning, so we’ve included outlets in our products at critical work points where students most need them.”

The classroom of today is not static – it shifts and adapts

Class-ifi by HON

She adds: “The classroom of today is not static – it shifts and adapts with students as their preferred learning styles change or expand. As such, we’ve introduced our Class-ifi range of mobile storage solutions designed to maximise space and encourage healthy movement. Additionally, our Confetti floor cushions and lounge chairs provide

portable, customisable seating solutions for schools. These encourage young learners to sit where they please, while staying connected and creative in their learning environment.”

New Hampshire-based Whitney Brothers makes wooden educational furniture for early years children. 2022 has been good for the company, with sales up 25% year on year.

Looking ahead, the business is forecast to grow in the high single digits in 2023, despite the headwinds of a global slowdown and turbulence in supply chains.

VP of Sales and Marketing, Brian Vaillancourt, says innovation is at the heart of this success, pointing to its Nature View Collection as an example: “This is biophilia-inspired furniture for early learning environments and follows the concept of bringing nature indoors which is particularly important to our littlest learners. We will continue to introduce innovative pieces into the collection every quarter.”

January/February 2023

THE EUROPEAN PICTURE Exacompta Clairefontaine is headquartered in Paris, but supplies educational equipment globally. UK Marketing Manager Lawrence Savage says forecasts predict that the global school stationery supplies market will continue with a moderate CAGR of 2.11%, with a projected increase of $10.8 billion between 2022 and 2026.

Germany is anticipated to account for around 30% of the growth across Europe.

Additionally, the UK is expected to benefit from recent government budget commitments to invest a further £2.3 billion ($2.8 billion) in education over the next two years, with primary and secondary schools likely to be the top beneficiaries of this additional funding.

Despite growing digital trends, Savage affirms that the company’s UK-based ExaClair subsidiary has actually seen a burgeoning uptake in its traditional desktop accessories and organisation categories.

He puts this down to a greater emphasis on collective and holistic learning within classes, with items such as elasticated ring binders and folders along with multipart files being used for collaborative project work among student groups. In addition, the company is witnessing more demand for modular stationery solutions, as well as tools like revision cards, which help children break down their learning into digestible segments.

Savage adds: “There’s also a focus on sustainable products. This continues to be a priority as both members of Gen Z and Alpha mature and develop their ecological awareness. However, as these individuals

CATEGORY UPDATE Education

to try and remedy the situation. A proportion of the Elementary and Secondary School Emergency Relief funds have not yet been spent and continue to provide opportunities to companies with solutions to offer.

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Education CATEGORY UPDATE www.opi.net 38

are more exposed to digital communications than any previous generation, the use of gamification and nano-learning techniques will continue to intensify.”

MIXED BAG DOWN SOUTH Moving to the southern hemisphere, in South Africa, Craig Noyle, Director and co-founder of independent marketing group Inovocom comments that the BTS period seemed poised for growth in January – the start of the new school year in the country. But here too, higher revenue figures disguise lower unit volumes.

While education remains a high priority for parents, they are typically under huge financial pressure, meaning purchases are left until the last minute, payments are often delayed or parents are looking for longer-term credit.

He adds: “The transformation to the use of digital devices in schools remains problematic, especially in rural areas where access to internet services is challenging, compounded by unreliable mains power and theft issues.

As such, traditional stationery is still desirable.

That said, the growth of EdTech products is happening. My concern is that OP dealers are not embracing this opportunity and are being bypassed by new entrants into the sector.”

In Australia, meanwhile, Sarah Hunter, Managing Director of Officeworks, says it’s vital to deliver value to schools, parents and students with affordable products and services, particularly given the cost of living crisis.

As in other parts of the world, schools face rising costs for utilities. They try to offset this by shopping around for the best options, especially on pricier items such as calculators.

Hunter says initiatives like the launch of the company’s ‘Bring Your Own Device’ purchase assistant tool can be useful for families. “It helps parents get the best value for their children’s schooling as it makes it easy to compare products on our website to ensure they meet a child’s particular school technology requirements.”

In terms of the main educational trends, educators are telling Officeworks that they

Art and education aisles at an Officeworks store

want to do more person-to-person activities with students after two years of hybrid learning forced by the pandemic. This is affecting the types of product they are purchasing.

STEM subjects in particular are seen as key learning areas, with demand for associated products on the rise. Lessons in engineering, for example, might include building model bridges, to complement the technical skills learned on a laptop.

Greener choices are also in high demand and Officeworks has responded by making its paint and craft supplies more sustainable.

Packaging increasingly comprises recyclable material and schools are being encouraged to return used pens so they can be repurposed.

EDUCATION POST LOCKDOWN Overall, the sector is still recovering from the effects of lockdowns and remote learning, according to Australian dealer group Office Brands. And while both benefitted the technology category, companies supplying more traditional products struggled, says Craig Matthews, Head of Procurement and Merchandise. “This year will see more institutions offer remote and hybrid learning, and the continuation of professionals in this sector working remotely.

This year will see more institutions offer remote and hybrid learning

For much more industry feedback on topics such as the back-to-school season, EdTech and the supply chain, read our Xtra content in the January/February issue on opi.net

“As such, we’ll have ongoing demand for home-based office and student equipment, and other accessories that assist with connectivity. Plus, there will be a focus on updating home study facilities and the products necessary to achieve this.”

He adds: “There’s also a spike in the sale of sporting equipment for primary and high school-aged children. This is a trend off the back of lockdown and is understandable as society in general returns to its outdoor lifestyle.

“In Australia, the single biggest challenge in this vertical is the inconsistency in the curriculum across the country. Education is governed by individual states, so different territories have different requirements. This makes things challenging – just ensuring we can cover all the various required book lists is complicated, for example.”

Looking at the big picture across the globe, while some obstacles and opportunities are pretty much shared by all operators, others are regional or country-specific. But anyone playing in this particular playground realises the need to adapt to the new status quo.

Standing still really means going backwards.

“The OPI European Forum is designed to help you better understand and analyse the changes to our sector in the post-pandemic era. Practical takeaways will enable you to make informed strategic decisions to ensure your business continues to succeed”

BOOK NOW FOR DISCOUNTED RATES

22-24 MAY

EUROPEAN Forum 2023

PESTANA AMSTERDAM RIVERSIDE

The only senior Executive Forum for the business supplies industry addressing our unique challenges alongside matchless networking opportunities.

SPEAKERS INCLUDE:

TOPICS INCLUDE:

James Brown, Senior Partner, Managing Director UK, Simon-Kucher & Partners

State of the industry panel

Gordon Christiansen, Partner, Highlands Juriaan Deumer, Partner, Simon-Kucher & Partners Paddy Donnelly, Managing Director, ES Tech Group

The future of the office and its implications for growth in the workplace channel How to attract younger people with fresh perspectives as the industry pivots and adapts to new opportunities

Mick Hays, Vice President, Imaging & Future of WorkSpace Practice Lead, IDC

Managing price in an inflationary market

Adrian Hands, SVP, Head of Sales, Skuuudle

How ‘Everywhere Commerce’ can drive sales and loyalty

Christian Horn, Chief Product and Supply Chain Officer, RS Group Alain Josse, Managing Director, Office Supplies Europe, Raja Group Christian Langvad, Vice President Operations, Schäfer Shop Group

The consumerisation of B2B e-commerce and what that means for your business Understanding and using competitor pricing analysis

Lee Mellor, Vice President Europe, SC Johnson Professional Perry Timms, Founder & Chief Energy Officer - People and Transformational HR

For more information and to book, visit www.opi.net/ef2023

ADVERTORIAL

Rocada UK:

AT YOUR SERVICE

The UK has been on Rocada’s map for some time. But only last October did it make a concerted effort to be logistically very close to its customers in this market – with a new, dedicated UK Director to boot

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ounded in 1976, Rocada is a second-generation, family-owned Spanish manufacturer of presentation, workplace and furniture products. The company – headquartered north of Barcelona and run by CEO Marc Roca – distributes its products around the world.

It has subsidiaries in Germany, Japan and, since recently, the UK, each with their own warehousing and logistics facilities.

Ken Trenberth – a familiar face in the UK business supplies space – leads the new operation from a Birmingham base as its Director. He talks to OPI about directly launching the Rocada brand in the market and the vendor’s value and service proposition.

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OPI: You officially began trading in the UK last October. What motivated the company to have a direct presence in the country?

Ken Trenberth: Rocada has been successfully developing its European presence for several years. We launched in Germany in 2018 and this subsidiary now accounts for over 25% of total group revenues.

The model of having local stock for the German as well as adjacent markets has driven closer relationships and opened up a

new set of reseller partners that want a fast and efficient logistics solution.

Our UK customer base was previously serviced directly from Barcelona and this will continue for clients that are able to take in stock and benefit from bulk pricing. But the growing scope of Rocada products, particularly in the office furniture category, has resulted in more interest from a broader range of customers.

Many of them ask for fast delivery on a next-day basis which is obviously a challenge in terms of logistics from Spain.

The prospect of having more stock locally has opened up a lot of positive conversations and Rocada felt it was ready for this next stage.

Investing locally will bring exceptional service to our partners and we’re pulling out all the stops to build trust in Rocada UK OPI: You clearly have plenty of experience in the market to lead the effort.

KT: I have enjoyed working in the UK business supplies industry for over 30 years and during that time have built many close relationships.

So for me personally – and by extension Rocada – it’s great to re-establish partnerships with many dealers, specialist furniture suppliers and dealer groups in what is a new product category for me.

The market has evolved and the current challenges are forcing us to work more closely with key customer channels, offering expertise

OPI: What’s your target audience?

KT: The whole Rocada range is selling well into large corporates as well as traditional offices, into the education sector and the SOHO market. As I mentioned, we have been working with resellers to offer those lines that are stocked in the UK for quick delivery. There’s also continual replenishment from Barcelona to ensure high availability.

We are discussing having larger projects fulfilled directly from our Spanish factory and central warehouse, usually within two weeks of order. Our team will be travelling to the UK to support customer visits and training sessions, on top of regular, virtual Teams calls.

OPI: From a content perspective, I believe you’ve partnered with FusionPlus Data.

KT: Yes, we have. Our products are available through a variety of resellers that are targeting both B2B and B2C customers through their online portals.

To facilitate this, we are working with experts such as FusionPlus to ensure content is readily available for resellers, as is information on product availability through stock feeds supplied into the various software houses.

OPI: Let’s talk about those products. What can customers expect from Rocada UK? KT: Our viscom portfolio has historically represented the core of our sales and we strive to offer a full ‘good, better, best’ solution.

Ranges under this broad umbrella include Skin, Visualline and Natural.

Most recently, we launched an eco range of easels and mounts which are produced in our European factories using locally

Ken Trenberth

sourced materials. On this note, I would like to highlight that a focus on the environment is hugely important to us. We are proud to be ISO14001-certified and we are active members of Spanish technology institute AIDIMME which promotes sustainable materials, manufacturing and logistics.

We’ve also seen a lot of interest in our office furniture category. This includes Ergoline office seating, Set desking and our Be Soft furniture which offers solutions for open plan, meeting, reception and breakout environments. These items, again, are available for same-day dispatch from UK stock.

Combined, our full range comprises approximately 5,000 SKUs, with a selection now stocked in the UK.

ADVERTORIAL Rocada

and innovative products to meet consumer expectations. I have visited many resellers to discuss their needs and what we can offer – investing locally will bring exceptional service to our partners and we’re pulling out all the stops to build trust in Rocada UK.

OPI: Where is Rocada UK – and the group as a whole – hoping to go from here?

KT: Our initial, short-term plan was to increase awareness of the company and its products.

Several UK dealer groups, for example, have been supporting us through regular communications to their members. We have also been attending their conferences and exhibitions where we had the opportunity to speak to many proactive dealers.

Our partnership with FusionPlus Data has definitely accelerated our direct foray into the market. We will continue to build close relationships, support dealers and look to add more products to be locally available to reflect customer demand.

Internationally, Rocada is committed to further venturing into new geographies. To that effect, we’ve been attending a number of global trade shows, such as Orgatec in Germany and Paperworld in Dubai. Both have resulted in new distribution partners. We will also be exhibiting at Ambiente in Germany in early February and at the Stockholm Furniture Fair, also held in February 2023.

I most definitely see an exciting future ahead for both Rocada UK as well as the whole group.

January/February 2023 41

RESEARCH

EMERGING FROM TURMOIL

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the state of the industry report

STATE OF THE INDUSTRY PREVIEW

ast year was another turbulent one for the business products industry.

As the world gradually emerged from the restrictions of the COVID pandemic, it was hit by global raw material shortages, inflation and major currency fluctuations – not to mention the far-reaching effects of the war in Ukraine.

As all the various sector participants look at 2023 and beyond and what it may bring, they are evaluating a long list of questions:

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• Although prices have been increasing in 2022, what has been happening with volume demand and what strategies are being put in place to lessen the impact of any falling sales and market volumes?

• What has been the fallout from the ongoing war in Ukraine?

• What has been the impact of the fall of the euro and pound against the US dollar?

• What is the current market penetration of Amazon and Amazon Business; what can resellers do to respond to this giant?

• Which new product areas have emerged as opportunities in 2022?

• Are there any new potential channels/ distributors worth investigating?

• How important are online marketplaces and platforms; what are the main players?

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Where can they find the answers to these questions? Look no further than The State Of The BP Industry 2022-2023, the tenth edition of the annual research study by Martin Wilde Associates (MWA) and OPI. The report is based on approximately 45 in-depth and online interviews with some of the best minds in the industry in seven geographies – the senior executives of core business products companies in Australia, Benelux, Canada, France, Germany, the UK and the US.

As in previous editions, the survey will also focus on some crucial KPIs for the industry.

What were respondents’ overall revenue and margin trends in 2022, for instance, and what lies in store for 2023? What share of distributors’ sales were accounted for by jan/san supplies, breakroom and catering products, workwear/PPE and MPS in the same period?

[Leaders] have to arm themselves with as much business intelligence as possible to find a way through the turmoil

The State of the BP Industry 2022-2023 will be published in April/May 2023.

The report is available for £690 (approx. $850) if ordered before 31 March 2023, and for £950 ($1,150) thereafter. To order your copy, go to www.opi. net/soti2023

ESTABLISHING MARKET VALUES E-commerce has become hugely important, but what were the real revenue figures last year and how will they alter in 2023? And what about average order values – how are they changing in this new – and persistent – era of hybrid working? Finally, what is the value of the core OP market, last year and going forward?

The study will report on respondents’ perceptions of the main growth – as well as declining – product categories and channels in 2022 and 2023. It will further detail the 2022 financial performance of the key 15 distributors in our sector in the US, Europe and Australia.

More than ever, leaders in our industry need a yardstick to measure against as they seek comprehensive answers to the aforementioned questions. Quite simply, they have to arm themselves with as much business intelligence as possible to find a way through the turmoil in order to emerge alive and thriving at the other end. The State of the BP Industry 2022-2023 provides just that.

The winners of the 22nd European Office Products Awards will be announced at a presentation dinner on Monday 13 March 2023 View this year’s shortlist at www.opi.net/ EOPA2023

PRESENTATION DINNER MONDAY 13 MARCH 2023 HOTEL OKURA, AMSTERDAM

Join colleagues, friends and the cream of the European business supplies industry for a glittering evening of celebration and find out who will take home a coveted EOPA trophy!

WE WOULD LOVE TO SEE YOU THERE!

Book your tickets now at www.opi.net/EOPA2023 or email awards@opi.net for more information Sponsored by:

EVENT

Facilitating

GROWTH F OPI PARTNERSHIP 2023 PREVIEW

or the ninth time, resellers and manufacturers from across Europe will have the chance to get together for OPI Partnership, the annual ‘top–to-top’ strategic networking event. The venue is once again the exclusive Hotel Okura in Amsterdam, the Netherlands, and the date 12-14 March 2023.

The macro landscape remains difficult: COVID has become a manageable fact of life, but soaring inflation, unprecedented challenges around energy costs and an ongoing war paint a dark picture.

For organisations in the workplace supplies industry, growth – and how to generate it – is top of the agenda. And opportunities remain for operators across all channels. Sales of existing or new products – through different verticals or into new end consumers – are key. OPI Partnership facilitates this in a unique way.

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30% of attendees – from across the channels – are new this year due to the popularity of this senior-level strategic gathering

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THE PERSONAL TOUCH Where else do approximately 60 of Europe’s finest and most progressive companies come together for back-to-back strategic, confidential one-hour meetings that would typically take months to organise and, logistically, cost a fortune? Zoom and Teams are great and have become part and parcel of doing business, but they are not ideally suited to ‘branching out’, creating new or cementing existing relationships.

That’s the real power of this event – face-to-face, direct contact with senior executives and business partners in an efficiently time-managed way. Then there’s the invaluable networking in the coffee breaks, over breakfast or lunch, and during the culinary and entertaining evening functions

(see also 2023 European Office Products Awards, below). Whether attendees strike up conversations with vendors or resellers they’ve never dealt with before, or reignite relationships over a cup of coffee or glass of wine – the ease of connecting is always rated highly in the feedback OPI receives.

PROVIDING A SERVICE This year, Partnership delegates will also have the chance to talk to a selection of service providers and learn about how they can make their business operate more efficiently, venture into new verticals and geographical territories, and maximise their growth potential.

Partnership Expo – kept small to maintain quality and avoid overload – will run throughout the two days of scheduled meetings in the general networking area and is intended as a ‘drop in’ education and training opportunity for both resellers and vendors.

Chris Exner, OPI’s Chief Commercial Officer, comments: “Partnership is an event that remains an absolute must-have in our sector. This year, the line-up of resellers and manufacturers is quite simply the best we’ve ever had, with the key companies from all over Europe expected to be present. Better even, 30% of attendees – from across the channels – are new this year due to the popularity of this senior-level strategic gathering and its ongoing business-boosting takeaways.

“This time, we’re adding extra value through our Partnership Expo which will hopefully become a regular and in-demand feature.”

2023 EUROPEAN OFFICE PRODUCTS AWARDS The European Office Products Awards (EOPA) will once again be part of the Partnership schedule, recognising the most exceptional products, companies and people in our industry. All EOPA winners will be announced during a special celebration dinner after the first full day of meetings on 13 March.

To find out more about the EOPA and book your place – OPI Partnership delegates are automatically enrolled – contact Lisa Haywood at lisa.haywood@opi.net or go to opi.net/eopa2023

EVENT

AMBIENTE 2023 PREVIEW

A work in PROGRESS

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OVID has often been viewed as an accelerator of many trends that were already well underway by early 2020. Arguably, one of those was the necessity for Messe Frankfurt to put the annual Paperworld show in its German hometown to bed and come up with a different concept.

That came to pass after last year’s eleventh-hour cancellation of Paperworld sounded its death knell. The trade fair organiser quickly moved to consolidate its consumer goods-focused exhibitions around three co-located events – Ambiente, Christmasworld and Creativeworld – taking place from 3-7 February 2023.

In challenging market conditions, it becomes more important to share thoughts, so that we may work together to make the recovery happen sooner

www.opi.net

While this might not be a bad thing for suppliers targeting the B2C paper-based hobby, crafting and social stationery sectors, where does it leave the B2B office products channel? A new ‘Working’ theme has been added to Ambiente, with Messe Frankfurt’s sales pitch very much based on the blurring of the lines between home and office environments. This is something that makes sense given the rise in hybrid and remote working over the past three years.

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THE FUTURE OF WORK Workplaces are also increasingly changing into social places where interaction and social exchange happen, according to Yvonne Engelmann, Director of Ambiente Living, Giving and Working. “The establishment of

coworking spaces as a new form of office organisation meets the urgent need for flexibility and mobility. This requires adequate rooms and equipment for (co)working as well as professional, attractive communal sections.”

With this in mind, a Future of Work area will sit in Hall 3.1, close to the interior design product space. A handful of manufacturers have secured booths in the Future of Work zone: German brands König + Neurath and Country Living, Spanish supplier Work Anywhere and France’s Bloon Paris. They will provide presentations on the topics of office space, collaboration and the home office.

A complementary programme of lectures and guided tours will take place during the first four days of the show. This is chiefly aimed at architects, interior and office designers/ planners, buyers and facility managers. On 6 February, for example, there will be talks on purchasing in the modern workplace, the use of AI and document management – all points of interest to OPI readers.

The final day of the event sees Sustainable Office Day taking over the Future of Work area. This is another topic close to OPI’s heart and many European operators in our sector in particular. Run by German sustainability organisation BAUM, it will include practical examples of what a ‘green’ office looks like, how sustainable procurement can be implemented in the workplace, and the promotion of the circular economy in the office.

LACK OF OP FOCUS For those who remember business products suppliers taking up three floors of the Messe Frankfurt showground, the new Office area, meaning the section dedicated to the OP B2B sector, may come as a bit of a surprise. This will occupy a fraction of Hall 4.2, although it will feature several well-known brands such

EVENT Ambiente 2023

as Acme United, Durable, HSM, Hopax, Novus-Dahle, Rocada, Shiny and Trodat.

Indeed, Hopax’s European Sales and Marketing Director Stuart Seymour says he is looking forward to Ambiente. “The industry needs events where manufacturers, importers, wholesalers and distributors can get together,” he states. “Of course, I expect it will be different to Paperworld, but this may mean we meet some new contacts.”

He adds: “Personally, I am excited to renew old acquaintances because I am sure we will have lots to discuss. In challenging market conditions, it becomes more important to

share thoughts, so that we may work together to make the recovery happen sooner. The ‘creative’ spirit of the Ambiente fair should stimulate discussion and make this event an interesting experience.”

A regular visitor to Paperworld over the years – and a proponent of the networking opportunities it affords – has been Geoffrey Betts, Managing Director of UK supplier Stewart Superior. However, he won’t be making the trip this year.

“We are very focused on programmes and expenditure and can’t justify the expense,” he notes. “The market continues to change and the collapse of Paperworld demonstrates the fundamental shift perfectly. I may look at going next year, but I would regard it as unlikely.”

Betts isn’t the only one looking at the return on investment of going to Frankfurt. Gerwald van de Gijp, CEO of Armor Print Solutions, confirms this is a key reason his company won’t be exhibiting at the Remanexpo event taking place at the same time. It’s a show, he says, that is becoming increasingly focused on Chinese newbuild products.

OPI will keep an open mind on the relevancy of the new Ambiente Working format. Look out for our feedback in the next issue.

January/February 2023 47

5 MINUTES WITH...

CAREER Q&A Describe your current job.

I serve as President of Perry Office Plus, a large dealer in Central Texas. My wife Lynnsay and I purchased the company from my parents at the beginning of 2022. I also head up the sales team on the supply side of the business.

H.B. Macey What’s your life philosophy?

Work hard, play hard.

What scares you?

Failure.

What makes you happy?

Enjoying a cold beverage while watching my kids feed our cows.

H.B. Macey, Perry Office Plus

What do you do in your spare time?

Working on the farm, hunting, golfing or relaxing on our porch.

Best compliment you’ve received?

A family friend has always called me ‘legs’. I agree – my calves are nice.

If you could trade places with someone for a day, who would it be?

Neil Armstrong. I wonder what it’s like to be the first man to walk on the moon.

Where would you most like to visit?

I want to stay in a place over the ocean.

No particular destination, just a hut on the water.

What’s your worst character trait?

Always having an answer. It may or may not be right, but I have confidence.

Favourite time of the year?

November to January – hunting season.

If the world had a President, who would you vote for?

Ronald Reagan. My favourite quote: “The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help’.” A close second would be football coach Mike Leach.

Think about his press conferences. RIP. What is humankind’s greatest invention?

The refrigerator.

Your childhood ambition?

Drive the pickup trucks in the Ford, GMC and Chevy commercials. They got to rip around in the mud, climb hills and go fast in the snow. If they broke the trucks, no one yelled at them – it was their job!

What’s not to like?

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Who is your biggest inspiration?

My dad – my mentor and best friend.

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What song puts you in a good mood?

Callin’ Baton Rouge by Garth Brooks. I am not a fan of the LSU Tigers, but would go to a game for that experience.

Your worst ever job?

In high school, I had a coach who had a side business that cleaned up job site rubbish receptacles. We would go to these sites on weekends and clean up contractors’ rubbish.

It definitely made me focus on school more.

If you weren’t doing your present job, what would you like to be doing?

I went into college with the career path of becoming a game warden; it switched to sales during my time there. Out of college, I wanted to pursue a career in heavy equipment sales. I’d say either of those.

Best moment in your career?

There are two. The day my wife started to work for the family company. Talking her into quitting her job and begin working at Perry Office Plus was one of my greatest accomplishments.

The other was becoming the second-generation owner of the business.

Who in your team do you most admire?

I have never worked on the furniture side of the business.

I’m not creative enough.

Our designers and installers complete some of the coolest projects and bring customers’ thoughts and dreams to life.

Your best bit of advice to someone new to our sector?

It isn’t sexy, but it pays the bills.

Focus on relationships, not price. Take care of customers and they will take care of you.

FINAL WORD – TRIBUTE

Inspirational LEADER

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n 26 December 2022, a much-loved personality in the UK business supplies sector passed away after a short battle with cancer – Tim Holmes.

Tim had spent the past eight years of his long career in our industry at Exertis Supplies, most recently as Director of Commercial – Office Products. There, he helped build a wholesaling business based on an ethos of partnership with manufacturers and customers.

Prior to that, he had had spells at Staples, Lyreco, Fellowes Brands and, dating back to 1998, ACCO Brands.

The love, respect and admiration everyone had for Tim was aptly shown at the BOSS Awards which took place in Manchester in November last year. He received not only the Business Leader of the Year award (see picture below), but also a rousing and very emotional standing ovation from his peers.

As Stewart Superior Managing Director Geoffrey Betts says: “His industry stood for him in Manchester, and it was the perfect response to a life and career of distinction.”

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KEEPING IT SIMPLE Tributes have been pouring in for Tim over the past few weeks – many of which can be found on LinkedIn – but the final word goes to Raj Advani, Commercial Director and Tim’s colleague at Exertis Supplies:

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“Despite Exertis Supplies having been in existence since 1990 and Tim having entered the industry in the 1990s, our paths never crossed until 2014 when, by way of recommendation, we recruited him to head our office products division. We had a clear vision to disrupt the status quo, but hadn’t yet formulated a plan as to how we would achieve our ambitions.

“From the start, Tim’s mantra was to “keep it simple”. It’s something you might hear in a training course, but Tim’s vision was to make the whole supply chain straightforward, honest and cost effective. With this strategy, we exceeded our goals every year and everyone in the chain knew what was expected of them to help perfect this model.

“With thousands of new products and dozens of new suppliers, staff had to learn quickly and Tim always made time to help anyone with difficulties or questions, no matter how minor. He had a multitude of qualities and I could write a book about them all but, as a tribute to our dear friend and colleague, have decided to ‘keep it simple’ and stop here.

“Rest in peace great man, I – and all the team at Exertis Supplies – feel so privileged to have known you.”

Tim Holmes