Industry Analysis and Industry Trends
The School Supplies Wholesaling industry has struggled over the past five years as a number of trends have worked against the industry's core business model. In fact, the industry has been contracting for at least a decade and this decline shows no sign of abating. Over the past decade the role of wholesalers has been diminished since large retailers such as Wal-Mart and Target have been successful integrating the wholesale function into their supply chains, especially for low-end products like school supplies. Additionally, the growing prevalence of online shopping has also reduced demand of the industry.
Increased integration among school supplies manufacturers, distributors and retailers is dampening demand for the School Supplies Wholesaling industry. This industry has been undergoing structural decline since the early 2000s. Greater buying power by the nation's largest retailers of school supplies, as well as declining demand for many of the industry's products has contributed to the industry's decline. Over the 10 years to 2019, industry value added, which measures the industry's contribution to the overall economy, is expected to remain flat, increasing at just 0.1% per year.