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Specialty Retail Leah Constan-Tatos. Specialty Retail - Industry Overview Includes stores that sell stationery, school and office supplies Sub-industries.

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Presentation on theme: "Specialty Retail Leah Constan-Tatos. Specialty Retail - Industry Overview Includes stores that sell stationery, school and office supplies Sub-industries."— Presentation transcript:

1 Specialty Retail Leah Constan-Tatos

2 Specialty Retail - Industry Overview Includes stores that sell stationery, school and office supplies Sub-industries such as office stationery manufacturers and wholesalers provide goods to office supply stores in the U.S. Schools, universities and households demand these resources Products offered by this industry generally constitute normal goods

3 Industry Financials Revenue $20.3bn Profit $811.3m Wages $2.3bn Number of businesses involved 9,757

4 Industry Segmentation

5 Porters Five Forces Threat of Entry…..…………………………...Medium Threat of Substitution………………………Medium Bargaining Power of Buyers………………Medium Bargaining Power of Suppliers……………Low Industry Competition………….…………...Medium

6 Relationship between per capita disposable income and corporate profit

7 Office Depot Overview Second largest retailer of office supplies in the U.S. with 35.7% market share Consists of three segments: North American Retail(this is the only segment that is a part of the Specialty Retail Industry) – 42% revenue North American Business Solutions -30% revenue International Division – 28% revenue

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9 Office Depot Valuation Market Capitalization - $1.39B Versus industry leader Amazon $2.384B Beta - 3.5922 Beta coefficient > market (1), thus more volatility and risk is expected regarding returns

10 Office Depot Valuation Calculations 201220112010 EPAT -4035083632.1-68311.4 NEA 12505301446745 FCF -1290880-1363113 -68311.4

11 Office Depot Financials 201220112010 Net Earnings (Loss) -77,11195,694-44,623 Comprehensive Income (Loss) -58,91666,423-60,443 CF from Operating Activities 179,332199,667203,126 CF from Investing Activities -29,727-157,158-191,520 CF from Financing Activities -55,182-98,576-30,898

12 SWOT Analysis StrengthsOpportunities ODP hosts the second largest market share (approx. 36%) Expansion into other markets/industries ODP is multinational Merging with Staples, its largest competitor WeaknessesThreats Limited product scope/expansion Increased use of the internet to purchase items It is difficult to compensate for shifting consumer demand Recession/economic turmoil

13 Websites Accessed IBIS World http://clients1.ibisworld.com.proxy.library. nd.edu/reports/us/industry/default.aspx?e ntid=1098 http://clients1.ibisworld.com.proxy.library. nd.edu/reports/us/industry/default.aspx?e ntid=1098 Bloomberg - Office Depot Form 10-K, 2013 http://investing.businessweek.com/resear ch/stocks/financials/secfilings.asp?ticker= ODP http://investing.businessweek.com/resear ch/stocks/financials/secfilings.asp?ticker= ODP Yahoo Finance http://finance.yahoo.com/q/in?s=ODP+In dustry http://finance.yahoo.com/q/in?s=ODP+In dustry

14 S&P Capital IQ http://www.netadvantage.standardandp oors.com.proxy.library.nd.edu/NASApp/N etAdvantage/cp/companyValuation.do http://www.netadvantage.standardandp oors.com.proxy.library.nd.edu/NASApp/N etAdvantage/cp/companyValuation.do


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