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Competition Deepens in Retail for Cut Size Paper

Press release from the issuing company

(Weymouth, MA) January 3, 2007 -- InfoTrends' new forecast on U.S. cut size paper distribution channels indicates that while paper merchants, office superstores, and contract stationer divisions will remain power houses for moving paper, the Internet, computer superstores, and mass merchandisers are expected to gain more presence as a source for paper. General merchandise stores and mass merchandisers will increase the amount of paper that they sell due to the sheer number of stores and the convenience of being able to purchase paper along with other goods. The Internet, however, is the only channel expected to show double-digit growth in terms of cut size tons distribution between 2005 and 2010. Quick printers have also emerged as a source of cut size paper. As a complement to their traditional business, quick printers including FedEx/Kinkos are emphasizing their ability to capture supplies business at retail and on-line due to their number of store locations and access to product. Staples is also opening stand-alone quick printer locations that stock a limited number of office products SKUs including paper. "Cut size paper is a low margin, high volume market which is very competitive and price sensitive," commented Cathy Martin, a consultant at InfoTrends. "Heavy cartons of paper can be expensive to move efficiently, and this has forced channels such as office machine dealers, forms distributors and manufacturers, and small storefronts to reconsider their roles in selling paper." InfoTrends' new forecast, U.S. Cut Size Paper Market Distribution Channels Forecast: 2005-2010, provides a five year forecast and considers how paper has evolved over the past 15 years in terms of channel availability and overall growth (revenue and tons). The forecast also examines distribution channels that are no longer strong for paper and the channels that will become important in the future. The complete forecast is available immediately to clients of InfoTrends' North American Communication Supplies Consulting Service. For more information about the report or to make a purchase, visit our online store or contact Nicole Shown at +1 781 616 2100 ext. 207 or [email protected]