June 17, 2024
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Can Office Depot and Dormify Win a Sizeable Share of the College Market?
In a move to ease the back-to-school shopping experience for college students, Office Depot OfficeMax has partnered with Dormify, a renowned leader in dorm room essentials. This collaboration aims to streamline the shopping and logistics process across 200 markets, providing students with a comprehensive range of dorm room necessities both in stores and online.
As the 2024–2025 school year approaches, Office Depot is expanding its collection of college dorm and school supplies. The new partnership with Dormify will offer students access to an array of stylish furniture and essential dorm room items. These products will be available for purchase online at officedepot.com and in 200 stores, ensuring that students can easily find everything they need for move-in week.
Kevin Moffitt, executive vice president of The ODP Corporation and president of Office Depot, expressed enthusiasm about the partnership. “We’re passionate about enabling our customers’ educational goals, and providing students with the tools to be successful is an essential part of that mission,” he said. By offering a wide selection of dorm supplies and providing versatile shopping and shipping options, Office Depot aims to empower college students and help them thrive in their academic endeavors.
Amanda Zuckerman, co-founder of Dormify, emphasized the importance of simplifying the college move-in process. “The preparation for college move-in is rife with to-do lists, errands, and tasks. We’re committed to making the process as easy as possible by simplifying the logistics and have found a great partner in Office Depot,” she said.
This collaboration allows students to see and experience Dormify products in person at Office Depot locations near their homes or campuses. Additionally, students can place orders at a store near their hometown during the summer and have them ready for pickup at a location near their school during move-in week, which is “a critical offering that we know our customers are requesting,” according to Zuckerman. Students who prefer online shopping can benefit from Office Depot’s free 20-minute in-store or curbside pickup, as well as free delivery on orders over $35.
The Dormify collection at Office Depot OfficeMax features a variety of storage and décor items, ranging in price from $15.99 to $309.99. Popular items include an eyelash fringe comforter and sham set, a velvet flower-shaped pillow, a three-drawer cart with USB ports, and a twin XL bedding bundle, among others.
However, the college demographic has tough competition. Market researcher Numerator revealed that Amazon and Walmart dominated the back-to-college shopping market in 2023, increasing their share of spending compared to 2022. According to the report “Back-to-College in a Shifting Retail Environment,” 70% of consumers shopping for themselves chose Amazon, while 54% opted for Walmart. For those shopping for someone else, 68% preferred Amazon and 67% chose Walmart.
In terms of spending share, Walmart led with 26.9%, an increase of 1.8 points year over year, while Amazon followed with 19%, up 2.8 points. Other notable retailers included Target at 12.4%, Costco at 11.5%, and Sam’s Club at 5.1%. The main reasons for choosing these retailers were good selection and competitive prices.
Earlier this year, ODP Corp., the parent company of Office Depot and OfficeMax, reported strong earnings in the fourth quarter, despite a net loss from continuing operations of $37 million. This compares to a net income of $36 million in the same period last year. Adjusted earnings were $35 million, surpassing analyst expectations. The company also announced Project Core, a new initiative to streamline operations, focus on core business activities, and enhance shareholder returns.
CEO Gerry Smith emphasized the company’s success in maintaining a low-cost business model and its capital allocation strategy, which supported nearly $300 million in share repurchases in 2023. Project Core aims to achieve annualized savings of $50 million to $60 million by improving cost efficiency across the enterprise. The plan also involves an expanded $1 billion share repurchase program.
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David Biernbaum
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Mark Self
President and CEO, Vector Textiles
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Discussion Questions
Given Amazon and Walmart’s dominance in the back-to-college market, how can traditional retailers like Office Depot OfficeMax leverage partnerships and unique in-store experiences to stay competitive?
How can initiatives like Project Core, aimed at streamlining operations and focusing on core business activities, impact the long-term sustainability and profitability of retailers in a changing market?
With the emphasis on convenient shopping and shipping, how can retailers balance operational efficiency with the demand for personalized, seamless shopping experiences both online and in stores?
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From our data, back to college spending was just shy of $80 billion last year. Around $14 billion of this was spent on dorm furnishings. So, it’s not surprising that Office Depot wants to try and cash in on the occasion. The problem is that Office Depot is way down the batting order when it comes to places people consider for dorm furnishings and, last year, usage was mostly confined to things like desks and chairs. A partnership with Dormify will certainly help round out Office Depot’s offer, but the challenge will be to make this visible to consumers who tend to automatically migrate to Target, Walmart, Amazon and other retailers out of habit. Interestingly, Dormify partnered with Container Store last year so I think from their perspective this is just about widening reach and awareness of their offer.
“Vichy..are they still in the League?” Sub “Office Depot” for “Vichy” in that quote, and you’ll get the idea: Are they still around? (And given that this is the college market, it may not be just a question of memory but rather “who?”) I hate to be such a buzzkill here – one can appreciate the strugggles of an (increasingly) off-brand-retailer – but the reality is very few college students even know the Office twins exist; so this is going to be (close to) 100% dependent on Dormify’s name recognition to work. How viable that is I don’t really know…when I was in college we were still ordering from back east and hoping the wagon train could get thru before the first snow. 🙂
I’m skeptical. In this area, IKEA is the undisputed king of back-to-college. It would take a considerable publicity campaign to dislodge the king.
Great catch. While Target and Amazon have an obvious appeal to Gen Z, IKEA holds a special place in their hearts – in product mix, affordable home fashion, and food offerings unlike any other. The IKEA brand has earned its keep.
Office Depot and Office Max, in partnership with Dormify, need first to recognize that a large portion of the collegiate residence marketplace is outside of “dorms.” At major universities, 61% of undergrad and grad students, combined, live in on campus and off campus apartments, and in “Greek” housing. Marketing to this larger base of students will enable Office Depot and Office Max to gain incremental market share against Amazon and Walmart, who also restrict their marketing energy to the “dorm” students.
The bigger challenge for Office Depot and Max, is that greater strategic marketing needs to be applied to achieving a greater presence of mind with students. Very few students think about “office stores” for collegiate furniture needs. There are way too many other choices that have greater presence of mind. Db
There is still a void in the retail market left by Bed Bath and Beyond, whose College program once had a strong hold on the market. Amazon and Walmart gained share during BBBY’s troubles. Dormify was a pioneer in this space that transformed basic needs into dorm decor and I believe they still can make an impact through style and design. Services like the once Pack and Hold Program that let shoppers make purchases and pick them up closer to their college destination during move-in were highly popular. Office Depot should look into a similar program as families don’t necessarily want to have everthing delivered to their homes only to transport them to the university at a later date.
Office Depot/Office Max can’t compete with Amazon in their regular business. They cannot compete with Amazon, Walmart, or Target against a target audience that rarely hears of them.
The market has different types of buyers: Those who plan ahead and those who need “it” now. Given the opportunity to plan ahead, you can buy from any retailer. For those that need it now, it makes sense for Office Depot to position itself with Dormify to give students the best of both worlds (online and in-store). The physical location of a store is also important. In any market, not just the college market, location and convenience is important. There is plenty of competition, and Office Depot is going to have to play with the best: Amazon, Walmart, IKEA, and more.
Last year Dormify also did a collaboration with Container Store. Now this shift to Office Depot may be further confusing to the customer. Although it may expand the overall brand awareness while allowing the brick and mortar retailer to dabble in other product categories, I don’t anticipate this moving the needle for either. I’d recommend a partnership with a retailer that is known for home. Kohl’s for example used to be one of the key destinations for BTC, however strategically the retailer shifted priorities. It’s now looking to refocus on home and BTC is a critical time period for this category. To be fully sustainable however, Dormify needs to look to extend its relevancy beyond just the short season.
The partnership with Office Depot/Max seems a bit off in terms of product and platform meaningful appeal to high school and college aged Gen Z’ers. This generation enjoys the simplicity and unending variety on Amazon, or inspired by fashionable brands and retailers in higher end shopping malls.
I’d bet if a Gen Z poll were taken, most would say they recall visiting an “Offices” store with mom or dad once in elementary school for notebooks, protractors, pens. If “Offices” wants meaningful marketshare with a younger customer base, they would be wise to undertake a brand evaluation and rebuild – in store design, product offerings, and communication.
Amazon, WalMart and I will add Target are too well entrenched here for “The Offices” to make much of a difference. I just don’t see it. They have to do something, I mean, how many yellow pads of paper and cheap office furniture. With traditional office market in flux (that is putting it mildly) these firms are needing new markets to chase–I noticed the local Staples is advertising the ability to “come in and work”….which sounds more than a little desperate to me.
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From our data, back to college spending was just shy of $80 billion last year. Around $14 billion of this was spent on dorm furnishings. So, it’s not surprising that Office Depot wants to try and cash in on the occasion. The problem is that Office Depot is way down the batting order when it comes to places people consider for dorm furnishings and, last year, usage was mostly confined to things like desks and chairs. A partnership with Dormify will certainly help round out Office Depot’s offer, but the challenge will be to make this visible to consumers who tend to automatically migrate to Target, Walmart, Amazon and other retailers out of habit. Interestingly, Dormify partnered with Container Store last year so I think from their perspective this is just about widening reach and awareness of their offer.
“Vichy..are they still in the League?” Sub “Office Depot” for “Vichy” in that quote, and you’ll get the idea: Are they still around? (And given that this is the college market, it may not be just a question of memory but rather “who?”) I hate to be such a buzzkill here – one can appreciate the strugggles of an (increasingly) off-brand-retailer – but the reality is very few college students even know the Office twins exist; so this is going to be (close to) 100% dependent on Dormify’s name recognition to work. How viable that is I don’t really know…when I was in college we were still ordering from back east and hoping the wagon train could get thru before the first snow. 🙂
I’m skeptical. In this area, IKEA is the undisputed king of back-to-college. It would take a considerable publicity campaign to dislodge the king.
Great catch. While Target and Amazon have an obvious appeal to Gen Z, IKEA holds a special place in their hearts – in product mix, affordable home fashion, and food offerings unlike any other. The IKEA brand has earned its keep.
Office Depot and Office Max, in partnership with Dormify, need first to recognize that a large portion of the collegiate residence marketplace is outside of “dorms.” At major universities, 61% of undergrad and grad students, combined, live in on campus and off campus apartments, and in “Greek” housing. Marketing to this larger base of students will enable Office Depot and Office Max to gain incremental market share against Amazon and Walmart, who also restrict their marketing energy to the “dorm” students.
The bigger challenge for Office Depot and Max, is that greater strategic marketing needs to be applied to achieving a greater presence of mind with students. Very few students think about “office stores” for collegiate furniture needs. There are way too many other choices that have greater presence of mind. Db
There is still a void in the retail market left by Bed Bath and Beyond, whose College program once had a strong hold on the market. Amazon and Walmart gained share during BBBY’s troubles. Dormify was a pioneer in this space that transformed basic needs into dorm decor and I believe they still can make an impact through style and design. Services like the once Pack and Hold Program that let shoppers make purchases and pick them up closer to their college destination during move-in were highly popular. Office Depot should look into a similar program as families don’t necessarily want to have everthing delivered to their homes only to transport them to the university at a later date.
Office Depot/Office Max can’t compete with Amazon in their regular business. They cannot compete with Amazon, Walmart, or Target against a target audience that rarely hears of them.
The market has different types of buyers: Those who plan ahead and those who need “it” now. Given the opportunity to plan ahead, you can buy from any retailer. For those that need it now, it makes sense for Office Depot to position itself with Dormify to give students the best of both worlds (online and in-store). The physical location of a store is also important. In any market, not just the college market, location and convenience is important. There is plenty of competition, and Office Depot is going to have to play with the best: Amazon, Walmart, IKEA, and more.
Last year Dormify also did a collaboration with Container Store. Now this shift to Office Depot may be further confusing to the customer. Although it may expand the overall brand awareness while allowing the brick and mortar retailer to dabble in other product categories, I don’t anticipate this moving the needle for either. I’d recommend a partnership with a retailer that is known for home. Kohl’s for example used to be one of the key destinations for BTC, however strategically the retailer shifted priorities. It’s now looking to refocus on home and BTC is a critical time period for this category. To be fully sustainable however, Dormify needs to look to extend its relevancy beyond just the short season.
The partnership with Office Depot/Max seems a bit off in terms of product and platform meaningful appeal to high school and college aged Gen Z’ers. This generation enjoys the simplicity and unending variety on Amazon, or inspired by fashionable brands and retailers in higher end shopping malls.
I’d bet if a Gen Z poll were taken, most would say they recall visiting an “Offices” store with mom or dad once in elementary school for notebooks, protractors, pens. If “Offices” wants meaningful marketshare with a younger customer base, they would be wise to undertake a brand evaluation and rebuild – in store design, product offerings, and communication.
Amazon, WalMart and I will add Target are too well entrenched here for “The Offices” to make much of a difference. I just don’t see it. They have to do something, I mean, how many yellow pads of paper and cheap office furniture. With traditional office market in flux (that is putting it mildly) these firms are needing new markets to chase–I noticed the local Staples is advertising the ability to “come in and work”….which sounds more than a little desperate to me.