The pandemic hit the German market for paper, office supplies and stationery hard. In the two years of coronavirus, 2020 and 2021, sales slumped by a total of 2 billion euros. Paper, as the largest sub-market, shows the strongest decline with a drop in sales of 14.3 per cent. But sales of office and school supplies, which were still on a slight upswing before the pandemic, also fell by double digits during the pandemic. Writing implements fared similarly, although fountain pens, pencils and coloured pencils as well as artificial colours and chalk were able to gain ground in this submarket.

Even though the situation caused by the pandemic is waning – at least for the time being – the general conditions for industry and the retail trade remain challenging, and are being further aggravated by the war being waged.

Online continues to grow

On average, every German spent 16.5 percent less on PBS products than 2016. And just against the backdrop of the pandemic, the calculations in the recently published “Industry REPORT paper, Office supplies and stationery 2022 However, the pandemic has proven to be a forward-looking factor despite its negative impact. However, coronavirus and now the war in particular are still affecting the consumer climate. The frequency decline in the inner cities remains noticeable, while online business in the industry is booming at the same time. market share has grown to 22.6 percent over the last five years. Retailers and more and more manufacturers had opted for B2C sales strategies during the coronavirus crisis. A trend without reversal.

Cost pressure is increasing

In addition, numerous supply chains remain disrupted, and the dynamic cost spirals are reinforcing the sales and earnings losses that are noticeable in many product ranges. As a result, overall profitability and thus investment capacity remain limited. On the other hand, transformation processes and digitization are being pursued more consistently. Among other things, because distance trading has proven its competitive strength before and during the pandemic. 2016 generated 2.5 billion euros of sales with PBS articles, until 2021 the increase in success amounts to more than 12 percent.

But action is needed not only on the marketing side, but also on the procurement side. Due to the tense availability of raw materials and incalculable procurement costs, the association of the PBS brand industry is worried about the future. It is said that you are struggling with increases at an unprecedented height.

The future will be sustainable

In addition to digitization, sustainability is one of the other market-relevant trends that will continue to influence the business models and assortments of the PBS industry in the future. Already during the pandemic, the demand for sustainable services became ever louder. Customers asked for more quality and individual products. That is why the PBS retailer adapted the assortments accordingly, even if sales figures are not always going the same way. Insiders estimate the revenue share of sustainable products to be at least 5 percent and a maximum of 15 percent. However, there is no way around a strategic sustainable orientation. Ecological forestry, for example, plays just as much a role in paper procurement as the elimination of plastic films.

The new way of working is proving to be a driving trend for PBS and the office industry as a whole. For Soennecken CEO Georg Mersmann, classic office supplies are a “crowding-out market, not a growth market”. But he is not the only one who sees opportunities to benefit from the market consolidation that this entails. Retail and industry are specifically targeting digital-savvy target groups.

Resource: Adapted from Internet