OPI APP March/April 2021 A

30 Celebrating

thirty years

S U C O F S SUPPLIE

BIG INTERVIEW

Matthew Hebert, Office Partners March/April 2021

Y FA C I L I TE FETY & PP /SA

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INSIDE THIS ISSUE l ODP/Staples developments l Consolidation in Europe l Industry Week ’21 confirmed l Schӓfer Shop in focus l OP retail revival? l PPE post COVID l Disruption and how to deal with it l Work-from-home impact l EOPA winners revealed l Global Forum preview

CONTENTS 14 Big Interview Matthew Hebert: improvise, adapt and overcome 22 Hot Topic A new lease of life for OP retail? There’s hope yet 26 Interview Data and service: at the heart of Germany’s Schӓfer Shop 38 Category Update Viscom: all change, but more important than ever 40 How to... ...identify disruption and respond to it 42 Research The impact of homeworking on employee well-being

Big Interview: Matthew Hebert, Office Partners

44 Research State of the Industry: standing at the crossroads

Office Partners is a veritable David to the Goliath that is Independent Suppliers Group. Yet the two US dealer groups 46 Preview: Global happily coexist. With Matthew Hebert, son of the group’s late Forum Online A look at OPI’s forthcoming founder Jim Hebert, at the helm, Office Partners is a family virtual global event business run with a simple mission: to help independent 48 Review: EOPA dealers across the US survive, succeed and thrive.

The winners of a quite The past year hasn’t been easy, but thanks to the relentless different 2021 European Office Products Awards pursuit of products – many COVID-related – as well as good freight terms, competitive pricing and low minimum orders, F O C U Hebert and his team have ensured dealers were in the best S position possible to weather the storm and make themselves FA C IL IT Y S U & P P E /S A FP P L IE S as indispensable as possible to their customers.

ETY HOT TOPIC: RETAIL REVIVAL?

32 Category Update Where next for Facility Supplies & PPE/Safety?

REGULARS 5 Comment 6 News 52 5 minutes with...

Margee Witt 54 Final Word Don Lewis

March/April 2021

Our omnichannel strategy is crucial for the company’s future success. We learned from the lockdown impact that our online sales could offset lower revenue from ‘classic’ retail.

However, the rebound in sales and demand in our retail stores after lockdown indicates that the customer is still looking to interact in person with the brand. This is proof all channels have their part to play in our overall strategy. Physical locations will remain relevant in the future, but the role of stores will continue to change.

For example, personal service and advice, as well as the integration of digital tools, will become even more important. We believe in our store business and want to meet all customer needs.

30 Spotlight When demand for its core products collapsed in 2020, Durable sprang into action

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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 1462 422 143 heike.dieckmann@opi.net Deputy Editor Michelle Sturman michelle.sturman@opi.net News Editor Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood events@opi.net Event Programmer Sophie Carus sophie.carus@opi.net

PRODUCTION & FINANCE Studio Joel Mitchell joel.mitchell@opi.net Finance & Operations Kelly Hilleard kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 7799 891000 steve.hilleard@opi.net Director Janet Bell +44 7771 658130 janet.bell@opi.net Executive Assistant Debbie Garrand +44 7718 660249 debbie.garrand@opi.net

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Connecting the business products world

he eagle-eyed among you will have spotted that something looks a little different on the cover of this magazine. Yes, it’s OPI’s 30th birthday this year. The actual month of the first-ever issue of OPI is not until November, but we thought we’d get the celebratory ball rolling very slowly.

Over the next few months, you’ll see this logo on all manner of OPI communications. And there’s no doubt we’ll be in touch with many of our readers for our commemorative September/October issue of OPI. COVID-permitting, we’re also hoping to raise a glass (or several) in person at a number of events across the world – watch out for announcements on opi.net and in these pages.

Talking of celebrations, we would very much like to personally congratulate the winners of the 2021 European Office Products Awards (EOPA) at some point too. Another milestone, incidentally – the EOPA are 20 years old this year. So far, the extraordinary achievements of all winners have been marked and honoured in a virtual fashion with the OPI team and the EOPA judges (page 48).

Despite a distinctly rocky start for many, there’s finally hope that 2021 will ultimately turn out to be a much better year than 2020 Despite a distinctly rocky start for many, there’s finally hope that 2021 will ultimately turn out to be a much better year than 2020 as vaccines are being rolled out globally and infection rates are going down. Plenty of uncertainty remains, of course: what will happen when financial support schemes are withdrawn, when staff are asked to return to the office (in some capacity at least), when product categories which have provided a lifeline over the past year lose a bit of their impetus (page 32)? How do you deal with so much disruption – again (page 40)?

These types of questions will be debated at the forthcoming OPI Global Forum Online, to be held from 5-6 May (page 46). A sign of the times, it's another virtual event, but that should in no way detract from the value it aims to create and the answers it hopes to provide.

I take my cue from this issue’s Big Interviewee Matthew Hebert – and indeed his late father Jim: improvise, adapt and overcome (page 14). It’s all anyone can do.

OPI’s mission over the past 30 years has been to “connect the business products world”. And that is what we will continue to do – in whichever way possible.

HEIKE DIECKMANN, EDITOR

Twitter: @opinews Linkedin: opi.net/linkedin Facebook: facebook.com/opimagazine Podcasts: opi.net/podcast App: opi.net/app

30 Celebrating

thirty years

Office Products International Ltd (OPI) Focus7 House, Fairclough Hall, Halls Green, Hertfordshire SG4 7DP, UK Tel: +44 20 7841 2950

No part of this magazine may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with provision of the copyright designs and patents act of 1988. Stringent efforts have been made by Office Products International to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur. Office Products International cannot accept responsibility for such errors or omissions. Office Products International accepts no responsibility for comments made by contributing authors or interviewees that may offend.

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March/April 2021

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NEWS

There is certainly an opportunity for independent dealers in the new entity to increase their online presence. Another “crucial factor” is the scale the combination will bring in terms of purchasing terms. While each business will still be run separately, overall responsibility for OWG lies with MTH Retail CEO Matthias Baumann, himself a former CEO of Office World (see page 12).

Analysis: More reseller consolidation in Europe It has been a busy first couple of months of 2021 on the ‘old continent’ in terms of reseller M&A activity

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At the end of January, two leading players in the Swiss office products market – Office World Holding (OWH) and OFFIX Holding – announced the establishment of a joint venture to be known as Office World Group (OWG).

OWH is the majority shareholder in the new entity, which has almost 600 employees and sales of around CHF400 million ($440 million).

OWH, based in Bolligen, near Bern, operates 19 locations in Switzerland, generated revenues of around CHF170 million in 2019 and employs a total of 359 staff. It includes the Office World retail chain, B2B reseller iba and managed print business Tramondi.

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STRONGER TOGETHER OWH is part of the Austrian MTH Retail Group, which achieved consolidated group sales of around €730 million ($870 million) in 2019.

MTH acquired Office World/iba from Swiss group Migros in 2017.

OFFIX, meanwhile, has been an umbrella organisation of Aarburg-based cooperative PEG since 2015 following its phased acquisition of technology distributor Ecomedia. The company is one of the leading stationery and office products players in Switzerland, with sales of around CHF240 million and 235 employees. It includes the Papedis and Ecomedia wholesaling businesses, retail services firm Oridis, B2B reseller Office Leader and managed print company DocuServ.

The rationale behind the transaction lies in the challenges facing the business supplies sector, including the effects of digitisation on filing and archiving product needs, the hybrid workplace trend and the rapid shift towards online sales channels.

DISRUPTION CONTINUES Elsewhere, the dismantling of the European Office Depot and Staples networks continues. In early February, Office Depot France (OD France) filed for voluntary administration after its owner – private equity firm Aurelius – chose not to provide funds (estimated at around €10 million) or provide guarantees that would have helped the reseller obtain a €30 million government loan.

Faced with an impending cash crisis, OD France CEO Guillaume de Feydeau and his advisors chose to file for administration. This created the breathing room to be able to come up with a viable, long-term solution for the company.

Aurelius confirmed this would happen via a sale of assets and interested parties had until 19 March (shortly after this issue of OPI went to press) to submit bids.

OD France operates a multichannel model, with 60 stores plus contract and direct units, and employs some 1,750 people. Its sales in 2020 were around €280 million, down by about 20% versus 2019, with the contract arm, in particular, hit by COVID-related lockdowns.

The dismantling of the European Office Depot and Staples networks continues The question now is whether anyone will come in for the company as a whole, or if it will be acquired in parts. That should be known fairly rapidly, with the court-appointed administrators expected to announce their preferred option(s) in the weeks following the 19 March deadline.

Over at Office Depot’s European rival Staples Solutions, its Global Accounts Team (GAT) was sold to multichannel operator PBS Holding, effective 19 February.

GAT comprises around 24 staff members under the leadership of Ian Kirton and was based at the company’s shared services centre in Gdansk, Poland. The entire group has now transferred to PBS, along with several key local account managers.

Staples Solutions said the transaction formed part of its localisation strategy, with GAT actually being the last centralised business at the company. As regards PBS, it now has 85 contracts with large enterprise customers and a foothold in a European contract channel where it sees plenty of market opportunities.

M&A activity in Europe is unlikely to stop there, with expectations of further transactions in countries such as the UK and Italy, for example.

NEWS

Analysis: ODP hones strategy despite Staples shadow ODP is ploughing ahead with its strategic transformation, but will it be able to fend off the advances of Sycamore Partners-owned Staples?

In the January/February 2021 issue of OPI (page 6), we expected further developments in Staples’ latest attempt to acquire Office Depot – now known as The ODP Corporation (ODP) – and so it has proved. At the end of February, it was confirmed that the US Federal Trade Commission (FTC) was investigating the proposed transaction and had sent ODP a Civil Investigatory Demand (CID).

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The inclusion of Grand & Toy in Canada is bound to face close scrutiny from the CCB

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Explaining the situation during the company’s 24 February earnings conference call, ODP’s Chief Legal and Administrative Officer David Bleisch stated: “The CID makes clear the FTC is not only reviewing the proposal’s potential impact on competition with respect to the B2B businesses, regardless of any proposed divestiture, but is also conducting a thorough and broad review extending into every aspect of our businesses across every distribution channel.”

That, and the information that Staples did “not want to engage in substantive discussions until the regulatory process is completed”, suggested a prolonged pause in proceedings. After all, an FTC investigation of this nature can take up to six months. However, there was optimism that a deal for a retail/e-commerce tie-up would be agreed.

In a client note, UBS analyst Michael Lasser said ODP’s share price of around $41 (on 25 February) “likely reflects the possibility that a deal can be worked out”. He also pointed to the importance of ODP’s willingness to engage with Staples, including its suggestion of forming a joint venture.

NEW DEVELOPMENTS The tale took another twist on 10 March when, instead of grasping ODP’s olive branch, Staples sent a revised proposal to the ODP board in the form of a letter of intent (LOI).

In this document, it laid out plans to acquire the following ODP assets: the retail stores and consumer-facing e-commerce businesses; Canadian subsidiary Grand & Toy; the network of acquired ‘Federation’ dealers; all US company-owned distribution centres; and ODP’s global headquarters in Boca Raton, Florida. In other words, the whole of ODP minus its B2B contract division and IT services unit CompuCom (the latter of which ODP is trying to sell anyway).

Against the backdrop of the overtures from Staples Inc, ODP has made some key moves that confirm its strategic direction towards becoming a stronger player in the $8 trillion US B2B commerce market.

In mid-February, it announced the hire of Prentis Wilson – the man who launched Amazon Business in 2015 and turned it into a $10 billion business in just three years. Wilson has been recruited as President, New Technology Prentis Wilson, an Business, with a goal eye-catching hire for ODP to “further drive the company’s digital transformation, leading a new technology business focused on transforming B2B sourcing, purchasing, and supply chain for suppliers and buyers”.

Wilson joins another former Amazonian, Terry Leeper, at ODP. The former Head of Product and Technology at Amazon Business was named ODP’s Chief Technology Officer last July. Both appointments show the reseller’s ability to attract star performers and, arguably, validate its technology aspirations.

Shortly after the announcement of Wilson’s appointment, ODP confirmed it had acquired highly respected P2P (procure-to-pay) software company BuyerQuest – with regulatory documents later showing a purchase price of around $62 million. BuyerQuest is a provider of cloud-based P2P software, private marketplaces and B2B marketplace hubs.

Our digital transformation focuses on providing our customers a complete B2B commerce platform designed to meet the needs of both buyers and suppliers ODP also announced a strategic partnership with Microsoft, essentially involving two projects. Firstly, ODP is to migrate its legacy IT systems onto Microsoft’s Azure cloud platform; secondly, BuyerQuest will be the P2P element of businesses that use the Microsoft Dynamics 365 Business Central ERP system – this will be a boost to ODP’s new digital procurement platform.

“Our digital transformation focuses on providing our customers a complete B2B commerce platform designed to meet the needs of both buyers and suppliers,” said ODP CEO Gerry Smith during the company’s Q4 2020 earnings call in February. Details are still sketchy, but the strategy is set to revolve around P2P, e-commerce and supply chain capabilities. Smith called the marketplace “a curated platform defined by contractual agreements […] connecting B2B buyers and sellers”.

ODP has said it will reveal more at its 2021 Investor Day. That event was due to take place in March, but was postponed due to the ongoing Staples situation. It is now unlikely to happen until talks with Staples have been concluded, especially given the uncertainty over ODP’s supply chain assets – a cornerstone of its marketplace strategy.

March/April 2021

REJECTION It was therefore not a surprise the ODP board unanimously rejected Staples’ 10 March proposal.

Instead, it urged its rival to engage in talks about a merger of the retail operations and direct web businesses as per its January response.

However, Staples shows every sign that it wants any potential discussions to focus on all parts of the LOI and not just retail and consumer-facing e-commerce.

If the reseller is trying to disrupt ODP’s ‘Maximize B2B’ strategy, it seems to be doing a good job so far. ODP’s plan is built on its North American supply chain and it’s difficult to imagine it moving ahead on a network that was owned by Staples.

The situation is certainly an unwanted distraction for ODP CEO Gerry Smith and his team as they try to build out a digital B2B platform. In addition, the prospect of a drawn-out regulatory process could increase the possibility of ODP losing key talent, something that has happened in the past.

As this issue went to press, there was no sign of any flexibility from Staples, and it was still due to launch its tender offer for the whole of ODP. Undoubtedly, there will be another instalment of this unfolding saga in the next issue of OPI!

ODP PURSUES MARKETPLACE STRATEGY

NEWS

Unlike its earlier $40 a share proposal, Staples did not specify a purchase price for the assets it wants to acquire. It said this would be negotiated once the FTC and the Canadian Competition Bureau (CCB) had made their positions clear.

The LOI also contained provisions for the leaseback of the ODP head office and its distribution centres, and for ODP to opt out of selling the Boca Raton premises and the Federation business if the parties could not agree on a mutually acceptable price for these assets.

According to Staples, this “simplified proposed transaction” would reduce antitrust risk, remove uncertainty surrounding Staples’ intended tender offer to acquire all ODP’s common shares and provide clarity on the future of ODP’s B2B contract unit.

At least two of those reasons are questionable.

Firstly, while not including ODP’s contract operations in the LOI might make things easier with the FTC, the inclusion of Grand & Toy in Canada is bound to face close scrutiny from the CCB. Indeed, in its 15 March response to Staples, ODP noted: “Grand & Toy customers and suppliers have raised serious concerns with the proposed transaction and no significant change to the competitive landscape appears to have occurred since the prior review of the proposed transaction in 2016 which would meaningfully mitigate those concerns.”

Secondly, the future of ODP’s contract unit would be far from certain. If the proposed transaction was consummated according to the LOI, ODP would just be left with B2B contracts and (it appears) its recent BuyerQuest acquisition (see right, ‘ODP pursues marketplace strategy’). It would even be renting its distribution network from its nearest direct competitor. It’s hard to see this as a long-term, viable business model for ODP.

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NEWS

ISG confirms Industry Week ’21

OPI Partnership announced for September

Independent Suppliers Group (ISG) has announced the dates and location of its highly anticipated Industry Week ’21 later this year.

The event will take place from 7-12 November 2021 at the Orlando World Center Marriott in Orlando, Florida.

The dealer organisation is promising the largest business products industry event of the year by bringing together its members, suppliers and partners for a week-long agenda.

Industry Week ’21 will include, among other things, a general session, educational seminars, member-to-member peer networking, a NEXT young leaders peer exchange, one-on-one member/supplier meetings, as well as an exhibitor tradeshow.

“I believe this groundbreaking event will allow ISG members and vendors to collaborate at an even higher level,” said ISG Chairman Jordan Kudler. “Members are anxious to spend some quality time together and engage in some good old-fashioned networking. While video conferencing served as an adequate bridge for communicating, there is nothing like some live face-to-face time.”

Given the cancellation of Industry Week 2020 and a rescheduled gathering in March 2021, ISG developed a series of virtual events to connect with its members but, as Kudler said, it will be a welcome breath of fresh air for many to be able to meet in person once again.

OPI is pleased to announce that Partnership, the strategic meeting event for vendors and resellers/distributors, will now take place from 19-21 September 2021. While the OPI team was still comfortable with the previously scheduled dates at the end of June, it believes the extra three months will make Partnership even more secure.

It is hoped that the COVID-19 vaccine rollout across Europe will soon start to accelerate, making it more likely that some semblance of normality will return over the next few months. “I am pleased to report that we are almost fully booked and have a very exciting list of vendors and resellers lined up,” said OPI Commercial Director Chris Exner.

“Delegates will spend valuable time with the 50 most prominent companies in Europe, have at least 12 formal one-hour meetings and network with over100 influential executives over two days. It is a perfect opportunity to build and deepen strategic relationships with key European players and grow your business profitably.”

The venue for Partnership has not changed, meaning it will take place once again at the Hotel Okura in Amsterdam, Netherlands (for more information, please contact the OPI team on events@opi.net).

US dealer joins Office Depot fold

Well-known US independent office products dealer Twist Office Partners has been acquired by The ODP Corporation as part of its Federation strategy.

Unlike previous Office Depot Federation acquisitions, Twist is no longer running under its own name. Instead, its customers – since 1 February – are being serviced through the operations of three other Federation dealers: Garvey’s in Illinois and Indiana, Business Essentials in Minnesota, and Complete Office in Wisconsin. Office Depot has now acquired almost 20 dealers as part of its Federation programme.

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Amazon Business hits $25 billion

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For the first time in two and a half years, Amazon Business has officially updated its global revenue number. In September 2018, Amazon Business was tracking at more than $10 billion in annualised sales.

In March 2021, the e-commerce giant revealed that this figure has more than doubled to $25 billion.

It was also confirmed there are currently more than five million registered Amazon Business accounts worldwide and that the platform offers “hundreds of millions” of products. Just over 50% of revenue comes from third-party sellers.

Amazon Business – which now operates in nine markets – also provided details on the customers it serves in various countries: UK: More than 50% of FTSE 100 companies, all of the 15 largest

universities, 13 of the 15 biggest cities and six of the largest 15 hospitals across the country.

US: 45 states, 90 of the 100 largest cities and counties, more than 75,000 non-profit organisations and 92 of the country’s 100 largest hospital systems.

More than 80 of the Fortune 100 companies, including Citigroup, Intel, Cisco and ExxonMobil.

Germany: 25 of the DAX 30, 54 of the MDAX 60 and 39 of the SDAX 70 listed companies, plus 74 of the top 100 German SMBs. In the public sector, 96 of the 100 largest German cities, 13 of its 15 biggest universities and 10 of the 15 largest hospitals.

France: 90% of CAC 40-listed companies, more than 3,000 schools and universities, and 300 medical institutions

(including 130 hospitals, 70 clinics and 80 state-run retirement homes).

Italy: 53 of the 100 companies listed on Italy’s FTSE MIB exchange and 20 of the country’s leading universities.

Spain: 54% of companies on the IBEX 35 index and around 1,650 Spanish schools and universities.

GP MAKES AFH APPOINTMENTS Georgia-Pacific (GP) has promoted Kim Price (pictured) to the role of VP of Market Sales for its Consumer Products group. In her new position, she will oversee the away-from-home (AFH) sales teams for the GP PRO B2B division. Price has been with GP for 15 years.

In addition, GP said Erin Beckman has been promoted to VP of AFH National Sales.

LYRECO NAMES CLIENT RELATIONS DIRECTOR David Lameirinhas has made the switch from Lyreco Group management to lead its client relations department in the company’s largest subsidiary, France. He joined the reseller in September 2019 as Global Customer Care Director, and will now devise a strategic roadmap to ensure an optimal customer experience across the various touchpoints at the 200-strong call centre in France.

EXECUTIVE CHANGE AT ANTALIS UK Antalis UK has named Simon Fisher (pictured) as new Commercial Director for its print, publishing, office and visual communications units following the retirement of Bruce Munro.

Munro is retiring from the distributor after 29 years, although he will be staying on until October to support the transition. Fisher himself is a company veteran, having been with the firm – and paper merchant James McNaughton, which Antalis acquired in 2010 – for 18 years, most recently serving as National Sales Director.

MARCO CEO TO RETIRE Jeff Gau (pictured), CEO of leading print and IT services dealer Marco, is stepping down from his current role and will become Chairman as of 1 April. Marco President Doug Albregts – a respected print industry executive and former CEO of Sharp USA – will step up to the role of CEO. He joined the company as President in 2019.

COLOP MAKES LEADERSHIP ANNOUNCEMENT The son of COLOP’s founder Karl Skopek has been appointed as a Managing Director at the Austria-based vendor. Christoph Skopek (pictured) will jointly carry out the overall management duties of the company with longstanding CEO Ernst Faber.

Christoph Skopek has been with the family business since 2003 in various roles of responsibility. Since 2018, he has overseen key areas such as IT, e-business, and software and app development.

NESPRESSO NAMES B2B DIRECTOR Nespresso has named Beth Langley as Out-of-Home Director for its UK and Republic of Ireland division. She joins Nespresso Professional from UCC Coffee, where she spent the past eight and a half years and gained an in-depth knowledge of the coffee business.

Hawley leaving Office Friendly

NEWS

ON THE MOVE

UK dealer group Office Friendly has announced that its popular Managing Director Julie Hawley will be leaving the organisation. Hawley is stepping down from her role at the end of April to become Executive Director of Finance at leading UK group purchasing organisation YPO. Hawley joined Office Friendly in 2006 from wholesaler Kingfield Heath, where she had been Financial Controller. After becoming Finance Director at the dealer group in 2012, she was promoted to the role of Managing Director in 2016.

Since then, she has been credited with overseeing many successful initiatives at the Sheffield-based dealer group, something which earned her the Professional of the Year prize at the 2019 European Office Products Awards.

“I have spent 15 great years at Office Friendly and this has not been an easy decision to make; however, I leave the business in rude health,” she commented. “I am first and foremost from a finance background and this opportunity was too good to turn down.”

Chairman Gordon Profit will lead the Office Friendly team on an interim basis until a permanent successor to Hawley has been appointed.

NEW CEO AT MAC PAPERS AND PACKAGING US distributor Mac Papers and Packaging has named Charles Paquin (pictured) as its new CEO, succeeding the retiring Rick Mitchell.

Paquin was most recently CEO of ModSpace, a provider of modular space and portable storage solutions with 80 branch locations throughout the US and Canada. He left the company in 2018 after leading its sale to competitor WillScot.

Julie Hawley

March/April 2021

BUSINESS SOLUTIONS APPOINTMENT AT WINC Australian reseller Winc has hired Simon Lane (pictured) as General Manager of its Solutions organisation. He took over from Drew Fairnham, who has left the company to join former Winc CEO Darren Fullerton at drinks giant Frucor Suntory.

Winc’s Solutions contract business includes technology, furniture, print and marketing, MPS, health, hygiene and safety. Lane said one of his first priorities is to grow Winc’s share of customer wallet.

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NEWS

TOP 100 – NEW ENTRY

Matthias Baumann, CEO, MTH Retail Group

Matthias Baumann has returned to OPI’s radar with a bang. The former Managing Director of Swiss retailer Office World and Young Professional of the Year winner at the 2004 European Office Products Award was Matthias appointed as CEO Baumann of Austria-based MTH Retail Group in September 2020.

The company was already the owner of OWiba (comprising Office World and iba) and is now behind the creation of Office World Group (see Analysis, page 6).

After leaving Office World in 2008, Baumann spent three years as CEO of Swiss furniture company Interio followed by five years as Managing Director as Managing Director Switzerland for online pharmaceutical group Zur Rose. In 2015, he returned to the furniture industry as CEO of another Swiss company, Möbel Pfister, overseeing its digital transformation. While there, he had the opportunity to join the MTH Retail Group board of directors, and this eventually led to him being offered the CEO role.

MTH Retail has historically operated in the DACH (Germany, Austria and Switzerland) region – both in the B2B and B2C space – but Baumann has not ruled out making acquisitions outside these markets.

ehl

PICTURE OF THE MONTH

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This month’s photo may not seem unusual, just a bunch of guys standing in an office – but we are not living in ordinary times.

After 12 months of Zoom calls, the board of directors and executive team at Australian dealer group Office Choice were finally able to gather for an in-person meeting in March.

Hopefully, many OPI readers will be experiencing the thrill of similar ‘real-life’ get-togethers in the coming weeks or months.

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Leadership changes at ECI

ECI Software Solutions has promoted COO Trevor Gruenewald to CEO. He succeeds long-time CEO Ron Books, who has transitioned to the role of Chairman. Meanwhile, former CFO Sarah Hagan has been appointed COO. Gruenewald and Hagan will be responsible for the day-to-day operations of ECI, while Books will continue to work closely with both the ECI leadership team and its board of directors on driving the strategic mission and vision of the company.

Gruenewald – who has been at the software company since 2009 – will also be in charge of ECI’s overall product Trevor and M&A strategy. He has helped Gruenewald complete and integrate more than 25 acquisitions in the past 11 years. Hagan, meanwhile, will be responsible for overseeing all of ECI’s business units.

UK groups in ‘buy local’ move

UK dealer groups Nemo and Office Club have teamed up with a marketing agency for the launch of a website called Office Circle. The aim of the initiative is to “create a national network of office supplies dealers offering local delivery from one central website”.

Managing Director Tim Beaumont commented: “The new venture with Office Circle is ready to provide a custom, local service at a national level.

It’s a one-stop-shop for B2B supplies and equipment to be delivered straight to offices or homes for people working remotely.”

The Office Circle website features more than 20,000 products that are offered at “competitive prices”. Delivery is free of charge and fulfilment is done by Nemo and Office Club’s network of local dealers.

Essendant announces distribution milestone

US business products wholesaler Essendant has said its customers will have “a whole new way to compete” after completing its distribution centre network project with Staples.

Essendant’s Market ADOT (Automated Distribution Order Transfer) initiative means that its resellers have the option of having orders fulfilled through one of 19 Staples distribution centres – effectively adding almost ten Harry million sq ft (one million sq m) of floor Dochelli space. This is now live, with the last Staples distribution centres having been added in the middle of March.

Market ADOT is a programme that both Essendant and Staples have been working on for some time and which enables their warehouses to ‘talk’ to each other. It has been in pilot phase for the past several months to allow the project team to validate the offering and prove it in real-life market conditions.

Essendant CEO Harry Dochelli commented: “Our goal for Market ADOT was to make the experience seamless for our resellers while maximising the benefits. Achieving this goal took time but I’m proud to say we delivered against it.”

BIG INTERVIEW

Here to

HELP Improvise, adapt and overcome was Jim Hebert’s motto in business. His son Matthew – now running US dealer group Office Partners – couldn’t agree more

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www.opi.net

denville, Alabama-based dealer group Office Partners is a veritable David to Independent Suppliers Group’s (ISG) Goliath. But the two – four prior to the merger of ISG with TriMega Purchasing Association and Pinnacle Associates in 2019 – have happily coexisted for well over 20 years now.

With the exception of TriMega spin-off Pinnacle (in 2008), Office Partners was the last into the fold, having been created by the late Jim Hebert in 1998 (ISG was founded in 1977, TriMega in 1987). It has always been run as a family business and when Jim passed away in 2018, his son Matthew – who had been in the group since 2005, most recently as Director of Marketing and Dealer Development – took on the mantle of President.

Titles mean little to the man in the top job, however, as OPI’s Heike Dieckmann found out when she spoke to Hebert. Now working closely with his mother Diane, wife Bobbi and his brother-in-law Kevin McEntyre, Office Partners remains a lean outfit where, despite fixed roles, everyone constantly wears multiple hats.

And while Office Partners itself is a small entity, what it refers to as its family is huge – encompassing all its 125 dealer members. The group’s mission is quite simple: to help that family stay alive and thrive.

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OPI: Matthew, we talked to your father Jim a few years ago for the Big Interview, after he had won Industry Achievement at the North American Office Products Awards in 2015 at S.P. Richards’ (SPR) ABC show in Las Vegas. You were on stage with him I remember, presenting Jim with the award. Let’s start with your recollection of Office Partners in its early days.

Matthew Hebert: Well, we started from nothing.

When my Dad set up the group, we had 100 vendors willing to provide competitive programmes but without

a single dealer signed up. The numbers went up and down a bit over the years as dealerships merged or simply disappeared, but we are now standing at 125 members.

Our dealers are nationwide – from the East Coast of the US all the way to Hawaii. The only state in which we have no presence is Alaska.

OPI: You are not a cooperative, are you, so your dealers do not own the group?

MH: That is correct. When my Dad started Office Partners, he had managed and developed other groups. What was then the National Purchasing Association and National Office Buyers, for example. They were co-ops. He was asked to run the merged entity which became TriMega and turned it down.

So this is how Office Partners started. But he did not want to operate it as a co-op. He always said he did not want dealers to have to worry about the state of another dealer on the other side of the country – if one operator goes under, others would have to pay the debt. My father did not like the idea of them having that responsibility.

We run our group quite efficiently and simply, and what we do now is no different to what my Dad did all those years ago. Office Partners does not go after large rebates the way other groups

BIG INTERVIEW Matthew Hebert

Office Partners does not go after large rebates the way other groups do; that is not our aim do; that is not our aim. Our priorities are different: we want to help dealers with shipping, so we ask vendors for lower or free freight terms. And we ask for lower minimum order values and for better pricing. Those are the three key areas for our group of dealers. Getting better negotiated terms on these key things is going to help our dealer base sell more products, rather than waiting 90 days or a year for any type of rebate.

OPI: Do you have any stockless dealers?

MH: Many dealers now stock a small percentage of what they offer. One of the few exceptions is Indoff which is a non-stocking dealer. This is because it’s a franchise model, with representation nationwide and no distribution facilities.

Our dealer base relies on lower minimums from the manufacturing community as well as national wholesale support.

OPI: You mentioned Indoff a couple of times.

This is one of the dealers in OP Direct, the direct-buy subgroup you set up for larger independents last year, isn’t it?

MH: Correct. We now have four independents in that group – Hawaii-based HSC Office Products,

March/April 2021

OPI: Is there such a thing as a typical Office Partners dealer?

MH: There is. Start-ups all the way up to players worth $10 million in revenue comprise many dealers we have. But we have a few considerably larger ones too, including our biggest member Indoff, which is a $160 million operator.

You might remember that MyOfficeProducts was a member when it was in its prime and one of the biggest dealers in the country.

But the sweet spot for us certainly is the small to medium-sized dealer because these independents value the personal touch as much as we do. Most dealers are family-owned businesses. We take calls from them 24/7 and we have an intuitive website so they can find exactly what they need very easily. We keep it simple and help them wherever and whenever we can – that is what we have always been good at.

The same goes for the vendors – we do not beat them up, we work with them.

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Matthew Hebert BIG INTERVIEW

these items went to the healthcare sector, to the frontline where they were needed the most, which was completely understandable.

Wholesalers, as well as many of our vendors, improvised, adapted and overcame, and helped to develop and get to market the necessary PPE. Now you can get pretty much anything if you are not too fixated on branded product like Clorox or GOJO. These are still limited through our channel.

School Toolbox in Illinois, Business Essentials in Texas, and Indoff in Missouri.

OPI: Was there a need for this separate group?

MH: Yes. Necessary and warranted to survive the competitive landscape in the marketplace.

The independent dealer channel (IDC) as a whole already had the Direct Purchasing Catalog Group (DPCG), Pinnacle and the Dealer Supplier Collaborative (DSC).

Again, all we aim to do is help dealers. HSC joined Office Partners last year. We wanted to ensure this independent stayed whole and didn’t lose out in the transfer from DPCG to us. When a large dealer contacts Office Partners, we need to be able to offer a strong solution to be competitive.

We had not planned OP Direct, but we felt dealers had to have options.

OPI: Did dealers get burnt by non-branded items and products they did not have any experience with? Or surplus goods that now cannot be shifted?

MH: There were some quality issues, certainly, especially for hand sanitiser. Dealers were ordering pallets of it and now they are stuck with those products that smell like tequila or vodka.

Many of the players in our industry, and Office Partners members like I said, are small to medium-sized operators. As such, they typically have excellent relationships with local companies.

Small distilleries, for example, which started making all these hand sanitisers.

It was something that was really supported by the local authorities too. But they smell horrendous and the main vendors like GOJO today have better availability of Purell again. Dealers, meanwhile, cannot get rid of those pallets. I had a lot of samples sent to me and some of them were bad.

OPI: What has the past, pandemic-dominated year been like for you?

MH: It has been interesting. I have been on the phone constantly trying to find the next PPE item, unique masks, special gloves, and so forth. One dealer wanted a face scanner, so we signed a vendor which does facial recognition products that read your temperature, etc.

Everybody has really pulled together and done what they could. The ink and toner remanufacturers have done a phenomenal job, for instance. Clover, Liberty Laser Solutions, Arlington, NSA – they helped with a lot of PPE product our dealers just could not get elsewhere.

The highlight was that they also knew how to ship small quantities which is important to dealers.

www.opi.net

OPI: What about the wholesalers? I think there was some early criticism because they could not get enough of the much-needed PPE either.

MH: But nobody could because nobody was ready for what was about to unfold last March. All

16

Standing (l-r): Bobbi and Matthew Hebert; Kevin McEntyre.

Sitting (m): Diane Hebert

OPI: How did dealers respond to the need to deliver to customers’ home addresses? Were they able to do it?

MH: Some did. A lot of them asked the wholesalers to do their shipping for them. Several of the manufacturers also came out with drop-ship programmes. And a few customers would just come and pick orders up from a dealer’s front door – this is obviously particularly relevant in small communities.

OPI: So overall, have your members suffered financially in this past year?

MH: It sounds terrible, under the circumstances, but some dealers had their best year ever. We have not had a single dealer close because of COVID yet.

PPE has certainly allowed them to have their numbers in the same ballpark as 2019. There has been light demand for domestic furniture – chairs, tables and desks for the home office, etc, and obviously for any electronic and technology products associated with that environment.

There has not been a lot of call for office supplies, as you can imagine. Commercial furniture is also down, as is demand for breakroom products. Even when staff must be in their usual place of work – typically not in an office environment – they are not allowed to be in a group setting anywhere.

The one thing I heard in this context is some demand for TV tray-type tables. A large dealer customer I know bought several of these items so staff can eat lunch in their own area.

Overall, I believe dealers are really starting to broaden their scope and reach in the marketplace OPI: I guess the strife or success of independents has depended to a large extent on the demographic they are in, the level of restrictions in place and their particular customer base. Those catering for the large, corporate customer, I imagine, wouldn’t have done so well?

MH: They adapted, providing more deliverables to homes and thereby directly competing with the likes of Walmart.com and Amazon, for example.

In most instances, dealers would typically never have had the opportunity to compete in this segment. Because many manufacturers supported drop-ship programmes, they could.

OPI: On the jan/san note, you entered a relationship with The United Group (TUG) about four years ago. How is that going?

MH: Yes, we did. TUG is a purchasing organisation with more than 500 independent jan/ san, foodservice, safety, and industrial packaging supplies dealers in the US. Our groups overlap in several ways, so it made perfect sense to work together in some capacity.

TUG has over 200 vendor partners that we do not carry, and we have 120 vendors they don’t have. It’s easier to work together than starting from the beginning.

TUG dealers can buy through our programmes and Office Partners members have the same opportunity with TUG vendors. We collectively have excellent relationships with our vendors. Why try to understand those new categories when one party already has the expertise?

OPI: Are you looking for other relationships that would help your dealers tap into different product categories?

MH: Absolutely. We are always looking at new ideas or areas we can help our dealers get into. I love having dealers call me and tell me about an opportunity they got which we can then investigate.

I have a group comprising both dealers and vendors – kind of an advisory sounding board – that I’m in touch with regularly to ask questions about new ideas.

March/April 2021

OPI: You referred to furniture a moment ago.

Has your GSA furniture contract been a slow burner over the past year?

MH: Very slow. But it does not cost us anything and we still have the contract. There is a bit of transactional business right now, but definitely no large orders.

We are constantly enlisting our vendors to better define and build the government sector – strategically and methodically.

OPI: PPE will continue in some way, but not on the same level. What are dealers doing to prepare for when the pandemic situation eases again, bit by bit?

MH: They are asking their customers so many questions. What are you going to be doing when any kind of normalcy returns? Will staff return to the office? Will you offer a hybrid working scenario?

What equipment do employees need? How can we help facilitate any changes? Can any equipment be retrofitted?

But they are also going to the vendors, saying: “Hey, this is the new norm for my customer; what can I do to prepare for that?” We have been liaising with a lot of vendors asking them to help our members with additional information.

Overall, I believe dealers are really starting to broaden their scope and reach in the marketplace.

Jan/san has been an adjacent category for them for years, supported by the wholesalers. But it’s not adjacent anymore and they need to take a much bigger step into it.

BIG INTERVIEW Matthew Hebert

Fundraising and networking with industry peers

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Matthew Hebert BIG INTERVIEW www.opi.net 18

OPI: Do you work with both wholesalers in equal measure?

MH: We do. Both have a great and vested interest in the dealer community. As a group, we are flexible and adapt to today’s marketplace demands – and our national wholesalers help us tremendously in this regard.

Office Partners’ members are split in terms of which wholesaler is first call and which is the back-up supplier – that seems to work very well.

OPI: COVID aside, both the wholesalers have been through some fundamental changes in the past couple of years. What is your verdict on their current state of play?

MH: I feel for those guys. How many new programmes and initiatives can you really implement when people are not physically in one place, and when they have also had to do so much pandemic firefighting?

I think we will only truly see what both these operators have up their sleeves and are capable of in terms of helping dealers when some form of normalcy returns. More collaboration and transparency will be needed to achieve a true partnership with the IDC. Right now, both Essendant and SPR are doing exactly what I am doing: seeing how much Clorox product they can get, and then how they can manage the fulfilment for dealers. They do not have time to figure out what new types of programmes they can come up with or whether and when they are going to host their annual shows again. We are all in the same predicament.

It is not the wholesalers’ fault they cannot get product. They are doing what they can; the problem is the likes of Clorox only designate a certain amount that is allocated for our industry and distributed through our channel.

The wholesalers are never going to lose their dealer business, but the past year has opened some of our members’ eyes to the fact they also have to look elsewhere to pick up items and customers outside of the traditional office products channel. And I’m not just referring to PPE or jan/san items.

OPI: What else?

MH: Furniture. When people were sent home to work and needed home office furniture, our members could not get enough of it from the wholesalers – small desks, different types of tables, outdoor casual furniture you can work from – they just did not have it.

On a different note, I signed up a company called ScentLok – it sells hunting-related gear.

My dealers thought I was crazy, but it also sells a product called Ozone which, among other things and for its typical customer, cleans hunting clothes and removes odour from them. It also kills or reduces the spread of viruses and bacteria.

ScentLok makes all these products like cigarette lighters and wall plug-ins that people can use in their cars, in offices, and so on. I get asked about this type of merchandise by our members every day.

Douglas Stewart Company is another company we are dealing with which has helped us find unique school items and PPE that customers are looking for currently.

OPI: And you deal directly with these vendors?

MH: Yes, because my dealers need the products immediately. I can call SPR or Essendant and tell them about these companies, but it takes too long for them to bring these on board – I can just review and refine the programme with them, set up the billing and go.

We will only truly see what both [wholesalers] have up their sleeves and are capable of in terms of helping dealers when some form of normalcy returns It is exactly what my Dad had in mind when he set up Office Partners. He wanted the group to be like a small dealer: the customer – dealers in our case – needs something? We can get it. Quickly.

You go to a Staples or Depot and it is a different story: this is what we have – take it or leave it.

OPI: What do you think Office Partners excels at?

MH: Let me start by saying that I have never sold an office product in my life. I am all about

OPI: That is just a few weeks before the planned Industry Week. Is that something that interests you?

MH: I have never been asked to be involved. My feeling is that it will still be ISG’s show. And the group will do it extremely well, no doubt. Ours is quite different and very much a one-on-one collaborative effort.

When Avery’s Barry Lane initially worked on Industry Week with the Business Solutions Association (BSA), prior to the collapse of the show, he and the BSA team were doing a great job of getting both wholesalers involved and we were extremely interested in the concept. This is essential in my view – the cohesive partnership with Essendant and SPR. Both combined have a much broader dealer list than any of the groups – ISG, DPCG or Office Partners.

When Barry and BSA were planning Industry Week, with wholesalers and the manufacturing community involved, we were going to participate in the event, along with all entities.

OPI: As regards Amazon: some of your dealers I presume are on its marketplace?

MH: Some sell on it, yes, and it works for them.

Others have dropped out because it is just too expensive. To me, it is almost like working with GSA contracts – you are either in or you are out.

You are probably never going to make a lot of money out of it, but there’s no point fighting it.

My father had the same issues, but with different operators. Initially, it was Walmart, then Staples and Depot with their stores. Small independent dealers are protected to some extent, because they are typically supported by their local communities. And many people still advocate and like that personal attention and care you get with these companies.

OPI: But that advantage surely is at risk of disappearing or at least diminishing with new generations of buyers.

MH: Absolutely. The problem is twofold. First, younger generations are buying differently, as you rightly mention, so small businesses are losing out unless they can cater to all audiences well. Secondly, our industry is getting older and without a big push of the younger generation coming in, a lot of family-run operations will simply disappear.

There are plenty of dealer principals in their 60s and 70s – the age my Dad would have been now. Many don’t have a succession plan, so they will be thinking of selling and consolidating their businesses at some stage. Of course, some of this will happen within the independent channel, but as we know very well, not all of it. And there will be new platforms and marketplaces – Amazon-style perhaps – where years of customer contacts and data will be deployed and perhaps lost to independents.

All that said, I prefer to stay positive. The products we all sell will never truly go away. So, envelopes are in decline – ok, but online parcel sales are booming and so are the materials and products that facilitate that. There are plenty of opportunities.

My Dad was a US Marine and the one thing he always told me was to improvise, adapt and overcome, just like the Marines must. That advice will always stay with me, so let us figure out what the next solution is – for whatever problem. And I would be delighted if I was able to pass on any of these solutions to our dealer members. This is what we do: we are here to help.

March/April 2021

OPI: There has long been the overriding aim to bring the industry together to jointly fight the big enemy of Amazon, but also Staples and Depot. Let’s stick with the big boxes for a moment: do you think it will be third time lucky in terms of Staples/Depot coming together in some capacity?

MH: Good question. Referring to retail and the big boxes, as you say, they are nowhere near as grand as they used to be 15-20 years ago. They might

pull it off, but what then, what would they do? The big stores do not work like they used to, but there are a lot of long-term retail leases from what I have been researching.

Because of the presence of Walmart.com, Amazon, Boxed and others, I believe the government may very well view the merger differently than before. No matter what the decision is, independent dealers will have to become more flexible and improvise, adapt and overcome market conditions, mergers and acquisitions to move forward.

BIG INTERVIEW Matthew Hebert

marketing – and about keeping it simple. I take our flyers to friends, for example – everybody is a potential office supplies customer in some way – and ask them: how does this look to you? Would you buy from me? Why or why not?

We produce theme-orientated promotional Solutions flyers and a Solutions Book. So, say, a customer wants binders, we have a flyer containing our bestselling binders. Not the least expensive ones necessarily, but those that will make it easy for customers to make an informed buying decision.

Another one is a flyer for people who work in small cubicles or from home. We went directly to our vendors and asked for specific products they recommend, that are in high demand and fulfil all the criteria that workers are concerned about in their working environment.

Obviously, the current in-demand category is PPE, so we have made a PPE flyer. We did not produce it last year because we did not want to put any marketing material out there when we were not sure dealers could actually get any product.

I work very closely with the dealers and manufacturers in finding key areas for marketing pieces. We have our yearly event too which is always very popular for future planning and cooperation. This year’s event will be from 24-26 October in Tampa, Florida. I am very hopeful for this opportunity to have dealers and manufacturers – spanning all categories – collaborate in person again.

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HOT TOPIC

T

Has the COVID-19 pandemic breathed a new lease of life into the office products retailing segment? OPI’s Andy Braithwaite takes a look…

here is little doubt that the bricks-and-mortar retail channel has been under huge pressure over the past few years, and still is. The term ‘retail apocalypse’ has become part of everyday language. Global research firm Coresight has predicted 10,000 store closures will happen in 2021 in the US alone.

But it is not all doom and gloom. Despite, or perhaps because of, the COVID-19 pandemic, some areas of retail have actually been performing well – or have at least demonstrated resiliency – over the past 12 months. You could certainly include the office supplies retail segment in that, with sellers recognised as essential businesses by many governments and therefore allowed to keep their outlets open while others around them were forced to close for often extended periods.

www.opi.net

The pandemic may have offered potential for a short-term rebound and brighter overall future

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For years now, the ‘jewel in the crown’ of speciality OP retailing has been Australia’s Officeworks. Sure, it has not faced some of the competitive pressures seen elsewhere – particularly online. But it has nevertheless fully embraced evolving customer shopping habits and the need to drive efficiencies in its operating model, while keeping stores central to its proposition.

Once again, its most recent results bear testament to the success of its strategy. In the six months to 31 December 2020, the company’s revenue was up 23.7% year on year to A$1.52

billion (US$1.18 billion). EBITDA grew by almost 14% to A$156 million, while pre-tax profit increased 22% to A$100 million.

Those results included strong sales growth both in stores and online. E-commerce – including click and collect – represented 37% of total revenue, up from 29.7% in the previous H1 period. In stores, the technology sections have been completely revamped, while more space has been devoted to categories such as gaming and work-from-home (WFH). Officeworks also introduced a new art brand called Born as it caters to the growing popularity of at-home activities.

DEPOT RETAIL: BEST PERFORMING DIVISION In the US, The ODP Corporation’s (ODP) North American Retail (NAR) unit – comprising the Office Depot and OfficeMax brands – was the group’s best-performing division in 2020. It even achieved comparable same-store sales growth in the fourth quarter.

Again, a key to this was NAR’s growing digital presence and omnichannel offering – with buy online, pick up in store (BOPIS) sales increasing by 50% year on year. For the year as a whole, BOPIS revenue was $358 million, up by 75% versus 2019.

NAR was also boosted by demand for essential items such as furniture, technology equipment, cleaning supplies, PPE and WFH/learn-from-home products. The growth in these categories, taken together, was $361 million in 2020, helping to offset declines in paper-based OP. Although there are still uncertainties about how purchasing habits might evolve post-COVID, there are signs that speciality retail has found a new lease of life.

MORE CONFIDENCE Chernofsky also sheds some light on why Staples and ODP are keen on combining their US retail operations. Placer.ai visitor numbers from the end of last year and early 2021 show improving trends at both brands following the COVID-19-related declines seen in November 2020.

“While Staples holds a larger visit share (see chart below), the rate of return may be giving [it] confidence it can, in fact, compete with digital pressures from Amazon and [push back] a wider consensus that the overall sector could be in trouble,” he notes.

The potential merger of the Staples and ODP US stores (more than 2,000 locations in total) is a story which is likely to develop during 2021. The US Federal Trade Commission is currently conducting an investigation into a wider combination of the two companies (retail and B2B), and this could still take a few months. Staples’ US Retail division declined to contribute to this article, but said it can hopefully share further details of its initiatives in

a few weeks – so look out for that on all of OPI’s platforms.

In Europe, the OP retail segment also appears to have been holding its own, despite the challenges of COVID lockdowns. Matthias Baumann, CEO 36% of Austria-based group MTH Retail, has provided OPI with some details of the performance of its Swiss chain Office World.

“Our fiscal year started on 1 March 2020 with a stable like-for-like sales level,” he states.

“Then we were hit by the first lockdown with more than 40 days of imposed shop closures. After reopening, we again enjoyed a solid top line, with higher sales compared to 2019 for the rest of the year. Top categories were furniture and home office equipment.”

He continues: “In mid-January 2021, the second lockdown was implemented by the Swiss government. As a large part of our assortment was considered essential, we were able to keep stores open, but revenues were impacted up to 50% due to the general restrictions on customer mobility and products we were not allowed to display or sell.

Nevertheless, with a strong online sales channel, cost measures and government support – such as a short-term allowance – we managed to secure FY bottom-line results.”

64%

opi.net poll

Is there a future for speciality office supplies retailers?

HOT TOPIC The State of Retail

As Ethan Chernofsky, VP of Marketing at retail location tracking company Placer.ai explains to OPI: “The wider office supplies sector was struggling significantly to find its place in the face of Amazon’s rising strength, yet the pandemic may have offered potential for a short-term rebound and brighter overall future.

"The rise of WFH meant many people had to upgrade their home office capabilities, and few brands were as well positioned to fill that need as Staples and Office Depot. While they likely have to undergo some degree of rightsizing their offline footprint, they are facing a unique opportunity to drive a significant long-term rebound.”

He continues: “The potential sustainability of greater levels of WFH should help these companies over time, but the combined reimagination of many retail and office spaces could aid even more. With concepts like in-mall co-working spaces rising and a greater appreciation for mixed use of retail and office, there are new formats operators could use to get close to professionals. These will increase the perception they are the most convenient and timely solution to help them in their moment of need.

“In addition, taking pages out of Best Buy’s playbook [see also Best Buy box, page 24], such as Geek Squads and appointment shopping, could provide longer-term boosts to help these brands and others cement their role as the primary players in the OP sector.”

n Yes n No

OMNICHANNEL IS CRUCIAL Baumann points to the importance of a combined digital and physical offering. “Our omnichannel strategy is crucial for the company's future success. We learned from the lockdown impact that our online sales could offset lower revenue from ‘classic’ retail,” he says.

“However, the rebound in sales and demand in our retail stores after lockdown indicates that the customer is still looking to interact in person with the brand. This is proof all channels have their part to play in our overall strategy. Physical locations will remain relevant in the future, but the role of stores will continue to change.

"For example, personal service and advice, as well as the integration of digital tools, will become even more important. We believe in our store business and want to meet all customer needs.”

Maintaining relevancy is a crucial point too for Francesco Villa, General Manager at Italian franchise chain Buffetti, where revenues have only been down between 5-10% in the past year. He notes: “We have seen a great increase in online sales, but customers are still looking for personal,

Source: Placer.ai

March/April 2021

Staples versus Office Depot store visits n Staples n Office Depot

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The State of Retail HOT TOPIC

‘live’ consultants in the shop. We see three pillars to survive and have success: immediate product availability, consulting, and store ambience.”

European omnichannel operator PBS Holding provides wholesaling services to retailers, among other things. In relation to these customers in Germany and Austria, CEO Richard Scharmann says their performance has been steady overall, despite the various lockdowns. However, he adds the caveat that government financial support over the past 12 months or so has had a lot to do with this stability.

“At the end of the day, retailers were not in a very difficult situation and were able to close the year in a fairly normal way,” he says. “In that respect, you could say they are lucky for the time being.”

A WORD OF CAUTION When government assistance comes to an end, it might change the landscape somewhat, however.

“On the positive side, retailers are adding fashion items and changing their assortments,” states Scharmann, “but after COVID, it will be very challenging; certainly more difficult than it is at the moment. As such, I believe we will continue to see a natural decline in the number of shops in the market, at least in Austria and Germany.”

One person hoping that new workplace trends will boost his retail business is Elliot Jacobs, Managing Director of UOE, which comprises retail, post office and co-working locations near London, UK. The company has even opened a standalone co-working space in the town of St Albans as it

BEST BUY: FROM BIG BOX RETAILER TO OMNICHANNEL RETAILER The results of US consumer electronics operator Best Buy have been impressive over the past 12 months. In its financial year ended 30 January 2021, comparable sales in its US network rose by more than 9% to $43.3 billion. The bottom line grew too. Adjusted operating profit in FY2021 was up by around 20% to $2.54 billion, while adjusted operating margin improved by 90 basis points to 5.9%.

Best Buy’s success goes back to a strategy it formulated in 2019, and which came very much to life in an accelerated way in 2020. Key aspects of that strategy include a couple of concepts it believes to be permanent and structural implications of the COVID-19 pandemic: Shopping behaviour will be permanently changed in a way that is even more digital: Best Buy’s online sales in the US grew by 144% in 2020 and represented 43% of total revenue – compared with 19% in the prior fiscal year and just 5% ten years ago. The company is forecasting the online mix to be 40% in the current fiscal year.

The workforce will need to evolve so it meets the needs of all its customers: Best Buy is retraining and reskilling its in-store staff to be more flexible and adaptable. This means they will be expected to perform a wider range of duties, such as call centre phone answering, live video chat, kerbside pickup, fulfilment, providing more in-depth product expertise and advice.

Best Buy CEO Corie Barry (centre)

omnichannel presence to an omnichannel retailer with a large store footprint for support and fulfilment.”

One example of deploying the retail footprint differently is Best Buy’s ship-from-store hub pilot it has been testing for the past few months. In its most recent quarter, it used 340 stores (about 35% of total locations) to handle around 70% of its total ship-from-store product units. Over time, it believes it can achieve similar results by consolidating volume using a smaller group of stores.

As the role of the store shifts, this has led to some “difficult decisions” regarding staffing levels in order to achieve a low cost base. In fiscal 2021, Best Buy let go roughly 21,000

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[We are moving] from being a big box retailer with a strong omnichannel presence to an omnichannel retailer with a large store footprint for support and fulfilment

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DIGITAL SHIFT The reality of the digital shift is that footfall in the final quarter of the year fell by 15% while, at the same time, uptake of the company’s mobile app grew by 80%. While this was partly due to COVID restrictions, Best Buy is not expecting store visits to return to prior levels. This means fundamental changes to its retail and labour models.

“Customers expect to be able to seamlessly interact with physical and digital channels and we must be ready to serve these needs at all times in all channels,” said CEO Corie Barry during a recent earnings conference call. She continued: “We are building our experiences around meeting these needs as we move from being a big box retailer with a strong

employees (ending the year with 102,000 staff), and has since eliminated a further 5,000 full-time positions as it increases its mix of part-time workers.

While this may not be good news, Barrie affirmed that the stores and staff “will always be central to our strategy”, adding: “We are simply looking at how we can best deploy our team and our physical assets to meet customer expectations and needs.”

The swiftness with which Best Buy has acted during the pandemic, positioning itself for the future of retail within an omnichannel strategy while still growing sales and profits, may well become a case study one day. It took full advantage of the US furlough scheme, and then used this breathing room to greatly accelerate its transformation strategy.

Retailers like UOE are capitalising on the work-near-home trend

If you’re working from or near home more, supporting your community has never been easier lockdown saw a big bump in crafting and jigsaw puzzles. We’ve seen an increase in packaging, as you’d expect, and, somewhat surprisingly, greetings cards – I think the power of words on paper means a lot right now.

“We also added a range of sanitisers, masks and other related items which has helped our sales performance. An uptick in home printing

has resulted in rising paper and inkjet supplies.

That said, the big drops have been in gifts, travel-related products, presentation, printing and binding and related services, as well as in filing and paper storage items.”

On a more positive note, Jacobs points to a heightened desire among consumers to support local businesses. “I think ‘shop local’ has strengthened through the pandemic – and I hope this will remain – as people realise having a vibrant high street, filled with fantastic shops that are operated by local people is what makes the centre of every community. If you’re working from or near home more, supporting your community has never been easier.”

This is the kind of entrepreneurial ethos and enthusiasm that is going to be needed in bucketloads as retail rises to meet the challenges it faces. But there is no reason to believe success cannot be achieved with the correct combination of location, assortment, customer service and experience, digital tools and the right cost base.

HOT TOPIC The State of Retail

invests in suburban areas where there is a growing demand for work-near-home (WNH).

“My team has been brave and outstanding in its commitment, ensuring all our branches stayed open every day and serving over 25,000 customers a week in a COVID-safe environment,” he states. “There has obviously been a shift in retail purchasing through that time – the first

March/April 2021 25

INTERVIEW

A BRAND

new promise Data and service – these are the two core concepts at the heart of Germany’s Schäfer Shop. Everything else around is just nice padding, says CEO Andreas Reuter

I

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n the grand scheme of things, Schäfer Shop is not an old company. It was founded in 1970 as a mail order and catalogue firm by the entrepreneurial Schäfer family, who already owned two other, unrelated businesses, the first one dating back to 1937.

But it has certainly achieved plenty in a relatively short period and is particularly well known in its home nation of Germany, first as a pioneer in the B2B mail order sector and then as an e-commerce expert with a digital go-to-market strategy.

With a reach across nine European nations, Schäfer Shop is currently in the midst of an overall brand restructuring and strategic review, due to be completed in March. When Heike Dieckmann caught up with CEO Andreas Reuter in this first-ever Schäfer Shop interview with OPI, the conversation quickly turned to the importance of data and service – and how best to use both – in our commodity-driven industry.

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OPI: Let’s begin with your OP career. Some of our readers might know you, as you had quite a long stint at Staples in Germany, I believe, before joining Schäfer Shop in 2012.

Andreas Reuter: Yes, I’ve been in the business supplies B2B space for 20 years now. I started in 2001 as District Manager of Staples Germany.

I then worked in several roles in the company before becoming Managing Director of first Retail at Staples Germany, then of all of Staples in the country, and finally Managing Director of the reseller’s German and Austrian operations.

I really enjoyed working for Staples, but as you know there was plenty going on at the parent company, and in 2012 I decided I wanted a

change. When I had the first conversation with Schäfer Shop about the CEO role, I asked them what exactly they expected of me. The answer was simple: make this business successful again.

OPI: Again?

AR: The firm had been going through a large-scale restructuring process and changed its outlook from a B2C focused organisation with quite a different product portfolio to a predominantly B2B orientated operator. That’s the nutshell version.

OPI: Quite a vague remit, wouldn’t you say?

AR: Absolutely. But I said, yes sure, I will do that. I haven’t regretted it for one moment. Schäfer Shop is a family-owned business. As such, my team and I have an enormous amount of freedom to do what we think is right for the company.

OPI: That must be quite different from your Staples experience.

AR: Definitely. I reported to Mike Miles, President of Staples Europe at the time. He was based in Framingham, Massachusetts, so not exactly the office next door, which gives you some indication.

But it wasn’t just the fact that working for a family business is more personal or that there is time to develop and implement ideas because you’re not tied to quarterly results. In terms of digitisation, Schäfer Shop was streets ahead of Staples and, to be honest, a lot of companies in our sector.

OPI: Why is that?

AR: Much of it has to do with data, the company’s biggest asset I would argue, and also the long-term employment of staff. We’ve been collecting data since 1995 when we first established a digital presence, so we have amassed a vast pool of customer behaviour information. We use this data differently now than we did back in 1995 or even in 2012 when I joined, but that’s not really the point.

OPI: Before we talk more about the present, could you just give a quick rundown of your major milestones? You’ve just mentioned 1995.

AR: Sure. The company was founded just over 40 years ago by two members of the Schäfer family with a focus on the catalogue. Sometime in the 1970s, they started opening some stores. I think at its peak, we had about 32 stores in Germany. The last one was closed in 2016.

As I said, we began our digital activities in 1995 and opened the first online store later that decade.

Another milestone I would say came when we set up our key account management and sales force team in 2010. We now have 60 to 70 account managers in the field across Europe.

In 2018, we founded our premium service business. That’s become a huge differentiator for the company as we offer customers complete turnkey solutions, not just products. The next milestone is definitely our current rebranding and restructuring project.

OPI: What are your total revenues?

AR: About €250 million ($304 million).

Schäfer Shop CEO Andreas Reuter

We’ve been collecting data since 1995 [...] so we have amassed a vast pool of customer behaviour information OPI: I’d like to hear more about your premium service proposition. But beforehand and perhaps to give some context, can you tell me where your core product focus lies?

AR: I would segment it into three categories.

In terms of revenue split, the biggest group is warehouse and industrial goods – shelves, racking, waste disposal, maintenance and cleaning products, and so on. The second is furniture. These two categories combined account for about two thirds of our revenues.

The remaining third is office supplies. But while office products is the smaller part, it’s nevertheless vital and strategically very important to us because of the repeat business. It allows us to stay in regular contact with our customers.

OPI: So the German-speaking side is the largest part. Is the language a big issue?

OPI: What are these products you’ve just mentioned that you were able to supply? The whole gamut of PPE? AR: Partly. We had most of these items before, but not in a broad scope. A selection of our product portfolio comprises industry goods – masks, gloves and signage are part of this. Our range is much bigger now, but more importantly perhaps, a year ago, we weren’t known for selling PPE to anyone outside the industrial setting. Our office-based customers would likely not have known that they can get nitrile gloves from Schäfer Shop – now they do.

And because these items were already part of our range, sourcing wasn’t a big issue.

OPI: You said furniture is one of your core ranges. Demand in this category must have fallen off a cliff outside small home office orders.

AR: It’s not actually so black and white. In the first few months, starting last March, demand was very low, absolutely. But by August, home office needs were ramping up and we adapted our assortment with these kinds of products.

At the same time, we saw another growing trend for equipping new office buildings. By that, I mean empty buildings where we would start from scratch with our premium service.

OPI: Tell me a bit more about that.

AR: The competitive landscape has changed fundamentally in the past few years. The reality is that an operator like Amazon can offer far more products – we can’t compete with its sheer range.

We also typically can’t compete on price.

March/April 2021

OPI: You are a German company, but your coverage is much broader, I believe.

AR: Yes, we are in nine European countries currently. Germany is by far the biggest, accounting for about 66% of revenues, followed

by Austria and Switzerland. We also have a direct presence in Belgium, Luxembourg and the Netherlands, while we use agencies in three countries – Poland, Portugal and Spain. We are hoping to set up direct businesses there in the short to medium term too.

OPI: What has the past year been like for you?

Has demand dipped considerably?

AR: It hasn’t, thankfully. We haven’t achieved our targets, for sure, but 2020 was on a par with 2019, so we’re fine with that. The reason for this consistently good performance is that we’re supplying such a broad customer base – predominantly in the mid-sized range – across many different sectors.

Obviously, demand from verticals such as gastronomy and the retail space is hugely down, but we also service factories in various industries, and here demand has been growing. In fact, we acquired plenty of new customers over the past year, due to our flexibility and ability to offer products they needed.

Looking ahead, I expect that many operators will go out of business as a result of the pandemic which may of course have an impact on us. We will see this in the coming months, as financial support schemes are withdrawn and companies have to fend for themselves again.

Schäfer Shop

AR: It is. We know there’s great potential in many of the markets we’re in – and several we’re not in yet, such as the Nordics – but language can be a bit of a stumbling block.

INTERVIEW

By comparison, at Staples, we had all these ideas about how to work with customer information, but didn’t actually have the data to start with.

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Schäfer Shop INTERVIEW

But we stand for high quality. From a furniture perspective, we figured out a few years ago that there was a real gap between what customers expected and what the market could deliver. We decided to hire interior designers and architects, project managers, a dedicated sales force – all in an effort to bring this premium service to the customer demographic of mid-sized businesses.

We started in Germany and are now finalising the rollout in the remaining European locations.

This service has been the fastest-growing revenue part of the company in the past couple of years.

The next big project for us is to replicate this premium service in the industrial and warehouse space with all the products it comprises.

OPI: Your background is in mail order and the focus used to be on the catalogue. Do you still have a physical publication?

AR: We do and it’s important. But the role of catalogues – or let me just say print – is changing dramatically. More than 50% of our turnover is generated through e-commerce. But print is often the marketing vehicle. We don’t send out a 1,500-page catalogue anymore; instead, we have direct mailshots, smaller catalogues, etc, to motivate customers to buy from our shop.

The catalogue is no longer a channel to buy from, it’s a motivator for customers to go online.

OPI: You’re often hailed for your e-commerce expertise. Is that a big differentiator for you?

AR: It isn’t actually. The biggest differentiator, as I said, is the data we have. A lot of operators sell the same products in our space. It’s how you use customer behaviour data and how you create an experience for them – that is what we’re good at.

We haven’t just bought a ready-made web shop from SAP or IBM, but created our own shop based on artificial intelligence and all the data we have.

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OPI: Talking of e-commerce and doing something very well brings me to one of your main competitors in Germany – Böttcher. That company passed the half a billion euro mark recently. What’s the secret sauce there?

AR: Well, it didn’t get this far through sheer luck, that’s for sure. Böttcher worked very hard for these results. The team knows what the market needs; they know their customers, are extremely good at service, realise when they need to slightly change their model, assortment, etc. And they do all this with a great deal of passion.

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OPI: What about Lyreco? Germany has been a challenging market for this operator.

AR: Lyreco is very well known in Germany and one of the top players in office supplies in the country.

But 2020 was a difficult year for anyone with a core focus on OP and a substantial direct sales force.

Diversification and digitisation are big topics now – Lyreco knows this as much as anybody else.

OPI: Staples Solutions – Office Centre now for its former retail part, of course – and Office Depot Europe: what’s your view on these former giants you’re very familiar with?

AR: All I would say is that a permanent restructuring process is typically not in the best interest of the customer.

OPI: On the topic of restructuring, Schäfer Shop is going through that process too, isn’t it?

AR: We are, in terms of branding and assortment.

Our own brands, for instance, are hugely important to us. About a third of the company’s total sales comes from these brands which are classified as good, better and best.

For office supplies specifically, it’s under 20% – that’s comparatively low, certainly a lot lower than what Staples had many years ago. We see plenty of potential here, across the entire range. It’s one of our largest projects this year.

Another big focus is our rebranding, due to be completed in March. We’ve not just created a new logo and corporate design, but concentrated more than ever on the core of what we stand for.

Our brand promise is to create positive working environments that make our customers more successful, with a passion for quality products and services. Every touchpoint to Schäfer Shop will be affected by that brand promise.

Founded: In 1970 by Hans and Gerhard Schäfer Ownership: Schäfer family, dating back to Fritz Schäfer and his first company founded in 1937 Leadership: Andreas Reuter, CEO Andreas Dietz, CFO Headquartered: Betzdorf (near Cologne), Germany Revenues: €250 million ($304 million) Staff: 650 Geographical coverage: Austria, Belgium, Germany, Luxembourg, Netherlands, Poland, Portugal, Spain and Switzerland

OPI: As an overall assessment and to wrap up: where are the best growth opportunities?

AR: Internationalisation. We are in just nine countries now, but have a business model which can be adopted in many more, so that’s definitely the biggest opportunity. We talked about the Nordics earlier – that’s potentially a very interesting market for us.

OPI: Are you thinking beyond Europe too?

AR: Let’s start with Europe – there are plenty of white flags left for us here. Even the UK could be part of Europe again, from a Schäfer Shop point of view at least!

Members of the Schäfer Shop team in their various verticals and settings

SPOTLIGHT

The secret to DURABILITY

F O C U S

FA CI LI TY SU PP LI ES & PP E/ SA FE TY

German office products manufacturer is Durable by name, and most certainly durable by nature – by Michelle Sturman

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he traditional office products industry has been called many things over the years, but fast-moving and experimental are unlikely terms to top the list. Until COVID-19 that is.

For a sector more akin to a carthorse than a racing car, the pandemic caused some OP manufacturers to suddenly switch into top gear and rev into action to protect their business.

Germany-based Durable was one such vendor.

Like many other companies, Durable saw demand and sales swiftly collapse from Q2 2020 onwards as coronavirus began to sweep around the world. Simultaneously, customer interest shifted to solutions and products for infection control, hygiene measures and the containment of the spread of COVID-19.

Charged with navigating the firm through the crisis was newcomer Rolf Schifferens, who took up the Managing Director position in early 2020.

Having said ‘newcomer’, Schifferens is in fact a veteran of the traditional OP world – he had spent the previous 18 years at writing instruments vendor Faber-Castell, among them as Managing Director of its distribution subsidiary and as a board member.

Preparing to build on Durable’s existing “very healthy pillars”, Schifferens had assigned himself the task of revising certain internal processes and undertaking some restructuring.

He says: “A year ago, the effects of the pandemic were unforeseeable, so the challenges

brought about by COVID-19 caught Durable and myself out just as they did everyone else.

“Needless to say, the mandate I had set myself had to wait as the focus shifted to mastering the crisis and being flexible in our response to the new circumstances. Hopefully, we will be able to work on the original goals this year.”

THINKING OUTSIDE THE BOX The pandemic induced unparalleled disruption for businesses, which created remarkable inventiveness at breakneck speeds rarely seen beforehand. Durable definitely fits into this category as it sought to stem the flow of sales flooding away.

Referring to the company’s core strengths of flexibility and innovation, Schifferens explains that the venture into manufacturing PPE was indeed an idea hatched by a colleague.

“In a very unbureaucratic move, we decided to pursue the concept. What followed was a creative and extremely efficient project. An agile team of experts from various areas such as product development and management, production and sales were put together at short notice to create a face visor.”

Swiftly swinging into action, it took the Durable team just two weeks from proposal to prototype.

Manufacturing then immediately commenced in Germany, making an urgently needed product from existing supplies. “Instead of folders and name badges, we were manufacturing face visors. They can be used as attachable shields to support those

DURABLE IN NUMBERS Office and manufacturing facilities: 15 Staff: about 700 Revenues: €100 million ($119 million) Portfolio: office supplies & filing; information & orientation; facility & warehouse equipment; new work solutions Product distribution: 80+ locations worldwide

Instead of folders and name badges, we were manufacturing face visors

THE SECRET TO SUCCESS Durable celebrated its 100th anniversary on 7 February 2020. OPI asked Managing Director Rolf Schifferens about the formula for the company’s longevity and success.

“The secret is consistency and diligence.

Importantly, we have constantly developed as a business. With an ear to the ground, we take notice of the needs of the market and implement them. This has enabled Durable to enjoy robust growth which, as a result, means we are financially in a solid position.

“Absolutely vital too, we treat our staff fairly and enjoy a high level of employee satisfaction.

However, we are not fooling ourselves: the pace of change has never been so fast. The challenges are continuously growing.”

March/April 2021

BOOSTING SALES Face visors are considered essential equipment in the fight against coronavirus and are used in a wide range of environments – from doctors’ surgeries, retail and beauty salons to academic institutions and workshops. This demand helped offset declines in Durable’s traditional product set. It also offered the vendor inroads into different distribution channels, access to new customers, and the ability to participate in relevant public tenders.

For its dealer customers, meanwhile, the COVID-19 hygiene range, which includes signage, bins and disinfectant dispensers, has been a real boost. And although the selection has been primarily distributed through its established trade network, online channels have also been an

SPOTLIGHT Durable

not protected by fixed plexiglass walls in direct customer contact,” explains Schifferens.

Durable’s face visors are EU certified (CE-compliant PPE according to EU 2016/425 category II and EN 166:2001) with Optical Class 1 – the highest level of visual clarity because of the highly transparent polycarbonate. This enabled the visors to be sold throughout the European market. Such was the demand for PPE items last year that part of the vendor’s production facility in Poland also had to be adapted to make the visors.

The global procurement of PPE has for many been fraught with difficulties which included the supply of raw materials, shipments and appropriate certification. By switching existing resources that would otherwise have produced binders and folders to be used for manufacturing PPE, Durable and its customers bypassed these obstacles with relative ease.

important route to market. While Schifferens did not reveal explicit numbers, he says e-commerce represents a “relevant sales share”.

And work hasn’t stopped. According to Schifferens, the material used has been revised over the past few months resulting in improvements to the visors. While the face shield is able to be disinfected and reused, replacement foils can also be sold, thus providing recurring revenue streams for resellers.

Importantly too, the face visor is completely recyclable, a critical element in the fight against the rising mountain of single-use PPE now littering the planet.

Aside from the success of the visor, other items in Durable’s portfolio have been adapted to meet COVID-secure workplace requirements. A prime example is its Duraframe product which provides safety and other relevant information. “In this way, we were able to make up for at least part of last year’s lost turnover,” Schifferens adds.

He expects the current hygiene range to remain relevant even after the pandemic subsides as employees begin to return to their offices and efforts to ensure a safe and hygienic working environment ramp up.

That said, Schifferens does not believe the category will increase beyond its present, albeit high, sales level. But there will be other growth opportunities as initiatives for new and flexible workplace models and logistics get underway.

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CATEGORY UPDATE

F O C UL IESS P FA C IL IT Y S UFPE T Y & P P E /S A

Prevention

IS BETTER THAN CURE

2020 was a stellar year for those involved in the PPE, safety and facility supplies arena due to COVID-19. But as vaccines are being rolled out across the world, what does this mean for 2021? – by Michelle Sturman

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he outlook for the PPE, safety and facility supplies sector appears to be a mixed bag. As the saying goes – or at least a variant thereof: “What one hand giveth, the other taketh away.” This pretty much sums up the general picture for 2021.

As the pandemic hopefully relents over the next few months, lockdown restrictions ease, and workplaces begin to fully open again, the supersonic boost that PPE in particular has enjoyed will lessen.

Frank Hoard, Director of the Facility Supply Channel at US-based Independent Suppliers Group (ISG), remarks: “As we’ve learnt more about the way the SARS-CoV-2 virus is transmitted and subsequent vaccines are made available, we expect to see much of the pandemic-related products demand to dwindle outside of the frontline healthcare channel.”

UK-based CTS Toner Supplies is a distributor that quickly added PPE lines as part of its standard product supply last year. Commercial Manager Nick Brooks says the company learnt not to have any expectations related to PPE as supply and demand is difficult to predict. However, in terms of core PPE, he forecasts a purchasing uplift when the retail and hospitality sectors reopen.

CTS recently introduced Panodyne antigen and antibody testing kits. “Our COVID test sales will subside when the vaccines deliver a national impact, but other items such as anti-bac and face masks will be here for a long time to come.

As for future growth, who knows, but we remain

equipped to take on new products – oximeters, for instance – if there is dealer demand,” he adds.

While distributors and resellers rapidly added items to their available line-up in a bid to retain revenue and aid in the fight against the virus, vendors have equally seen a swing in product mix.

Take Spectrum Industrial, for example. The UK-based firm experienced a “considerable shift” in Q2 2020 as safety product sales – its mainstay range – declined. This was more than offset by rapid revenue growth in social distancing signage, which the firm quickly created and launched in late March 2020.

PRODUCT MIX SHIFTS Periods of lockdown have created ups and downs, as the company’s Channel Manager Steve Plaistowe explains: “As we came out of ‘lockdown 1’ in the summer of 2020, core safety ranges rebounded as offices, manufacturing and construction sites reopened. As the year progressed, this category continued to recover, and social distancing signage stabilised somewhat. This pattern followed through to the end of 2020.”

According to Plaistowe, the latest lockdown, which began at the start of 2021, challenged its core market once again, although outbound sales recovered strongly in February, with ongoing expansion expected for the remainder of the year.

“We’ve also seen a resurgence of more bespoke signage used as part of interior redesigns, which encouragingly shows some

The past 12 months have certainly increased awareness of and demand for effective PPE across a number of industry sectors

Spectrum Industrial’s floor graphic

March/April 2021

INCREASED AWARENESS Stationery manufacturer ExaClair – part of the Exacompta Clairefontaine group – saw excellent demand for its ExaScreen range of PPE when this launched during the start of the global pandemic.

So much so the company has seen it account for over 40% of its growth categories.

Marketing Manager Lawrence Savage told OPI that the anticipation is for the category to remain an area of strength throughout 2021. He says: “The past 12 months have certainly increased awareness of and demand for effective PPE across a number of industry sectors, especially those which fall outside of the industries traditionally associated with its use.

“Forecasts show the global PPE market will more than double over the next five years, with an estimated value of over $33 billion by 2026. Items that feature innovative technological elements, known as ‘smart PPE’, are also predicted to produce a significant impact in the next few years.”

In fact, the global smart PPE sector is expected to reach almost $8 billion by 2027, with a CAGR of 15.9% during this period, according to research firm Fortune Business Insights. But what exactly is smart PPE? EU-OSHA, the European Union information agency for occupational safety and health, states that in most cases, smart PPE is traditional PPE combined with electronics such as sensors, detectors, data transfer modules, batteries, cables and other elements.

With the advent of AI, industrial IoT and 5G, data can be used to provide real-time critical information to ensure safer working environments.

For example, during the past year in the battle against COVID-19, smart helmets with thermo/

HIGHER STANDARDS As the varying responses to the coronavirus crisis from governments dictate the reopening of society, a return to the office and the reduction of PPE, certain subcategories within the PPE, safety and facilities supplies sector will undoubtedly fare better than others.

Safety and cleaning will become imperative as offices begin to reopen and businesses require a COVID-secure operating environment. One school of thought suggests there will be no ‘new normal’ as regards significant workplace enhancements in terms of safety, health and hygiene once the pandemic is over. Most experts and industry spokespeople wholeheartedly disagree.

While there may be fewer employees in the office at any one time as hybrid working takes off, it will still be necessary to maintain a hygienic and safe work setting. Perhaps even more so if hotdesking becomes prevalent and staff object to sharing workspaces that haven’t been thoroughly cleaned, sanitised and disinfected.

The potential for COVID-related products – especially hand sanitiser, safety signs and sneeze guards – in the office looks set to increase as employees will demand better working conditions going forward.

A recent global survey undertaken by health and hygiene manufacturer Essity highlights the fact that almost half (47%) of respondents said they have higher expectations of hygiene standards in the workplace after COVID-19 (see ‘Essity Essentials Initiative Survey 2020-2021’ on page 36 for more coronavirus-related information).

CATEGORY UPDATE Facility Supplies & PPE/Safety

infrared cameras have been utilised by law enforcement to scan body temperatures.

While specialist smart PPE may be beyond the realm of many dealers in the near term, ISG’s Hoard believes more technology-based products are being adopted within the channel. Here, he refers to items like touchless thermometers, temperature station technology, hydrogen peroxide-based disinfectants and metal ion surface barriers, which have been available for years.

confidence for the future. As for social distancing range sales, they remain stable and at a rate that provides good value, though we do expect a gradual rundown of these as the UK, hopefully and finally, exits lockdown.”

Avery is another vendor that has experienced an uptick in some safety-related products such as its GHS Chemical Labels for labelling secondary containers of cleaners and workplace chemicals.

Group Product Manager Colwin Chan expects the COVID-related spike in sales will continue for the first half of 2021.

The company also introduced new products to aid in the fight against coronavirus. “In the early days of the pandemic, we worked with our sister companies to offer PPE, including 3-ply and KN95 masks, to help alleviate the shortage at the time. In addition, we quickly launched adhesive floor signage to assist with the need for COVID-19 social distancing communication.”

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Facility Supplies & PPE/Safety CATEGORY UPDATE

Julia Vorley, Marketing Manager of specialist cleaning solutions manufacturer AF International, says the company is still experiencing a high volume of sales. Fortunately, AF already had a full range of antibacterial certified and registered products to respond to demand.

“I believe a heightened awareness of a good sanitising routine has been taken on by a large chunk of the population, and this will persist and become normal. For instance, nurses wearing face masks in hospitals. Individuals will be a lot more mindful of their behaviour as there has been such attention on this topic.

“I don’t think sales will maintain the frenetic rate experienced last year in terms of panic buying, but people will still be conscious of the requirement,” she adds.

ISG’s Hoard concurs, adding that hand sanitiser will continue to be purchased well above pre-COVID levels. But he says there is a push to move to a bulk system so end users aren’t at the mercy of proprietary systems where refills are unobtainable in a time of crisis.

“There is definitely a focus on pandemic products and safety items now within the workplace. We’ll equally see more individually wrapped breakroom items and personal cleaning products, like disinfecting wipes, being used to clean not only the individual employee workspace, but also common areas like lobbies, boardrooms and cafeterias,” he adds.

ExaClair’s Savage notes high interest in its Clean’Safe range, which incorporates a collection of filing and desktop accessories that have been treated with an antimicrobial additive to stop the spread of viruses and bacteria.

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DO THE RIGHT THING The popularity of the aforementioned products is unlikely to reduce in the near future as people are more keenly aware of the necessity for higher hygiene levels. Additionally, many countries have introduced legislation to bolster health, hygiene and safety measures.

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ExaClair’s Clean’Safe antimicrobial range

Says Peter Cowan, Procurement Director of UK-based distributor Data Direct: “Due to the pandemic, many safety manuals have been updated to include elevated levels of PPE requirement, and this will not be easily reversed. It does mean increased demand will remain due to legislation alone.

“The hope is that individuals, as well as companies, will take it upon themselves to ‘do the right thing’. They will increase hygiene levels as a matter of course, and get used to applying PPE and cleaning solutions more readily than before.”

There is definitely a focus on pandemic products and safety items now within the workplace

Avery’s Surface Safe sign labels

Getting up to speed on mandatory requirements may take time and resources, but Cowan believes opportunities lie within. “Dealers need to understand the legislation and make certain anything they are offering meets all of the required standards. There is definitely the potential of a consultative role as part of the service, which could easily be done without having to burden end users with extra cost.

“Supporting customers to create/rewrite their internal hygiene manual would be a real statement of support from the side of the dealer, and thus breed trust and loyalty,” he comments.

Savage echoes this sentiment, adding: “As with the successful supply of any product category, it’s not just about sourcing the most popular stock. The key is for dealers to take on a greater consultancy role, advising the consumer on where and how to best utilise its PPE equipment. In relation to this, more dealers are now expanding their support services to incorporate personalised office design layout solutions.”

As Essity North America Brand Activation Director Thomas Borrmann points out, the requirement for higher hygiene standards in workplaces, combined with new laws across all countries in Europe, has resulted in customers looking for an even broader offering.

Facility Supplies & PPE/Safety CATEGORY UPDATE

opi.net poll What are your sales expectations for COVID-related products in 2021?

ESSITY ESSENTIALS INITIATIVE SURVEY 2020-2021

20% 58%

22% n Worse than last year n Same as last year n Better than last year “During the crisis, legislation has been introduced at a unique pace, mainly focused on hygiene practices and PPE products, with rules differing based on the location, setting or even stage of the pandemic. The most obvious is the requirement for people to wear a face mask indoors.

“Regulations have recently shifted to a focus on approved medical device masks. For some countries, it relates to Type II or Type IIR face masks, and even in parts of Central Europe like Austria and Germany, FFP2 respirators are the legal requirement in public,” he adds.

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HERE TO STAY By all accounts, even with the current vaccination programmes rolling out – albeit to varying degrees of success globally – COVID-19 is likely to stay with us just as the flu and common cold are. Says CTS Toner’s Brooks: “For this reason, I think people will continue to be vigilant of social distancing, sanitising and wearing face coverings.”

Until the whole world has had the jab, the expectation is for intermittent coronavirus flare-ups, which means for the foreseeable future a continued heightened interest in PPE, safety and facilities supplies. “Enhanced cleaning protocols and safety measures will likely remain the norm moving forward due to the threat of new COVID strains and mutations,” agrees Avery’s Chan.

While the supply chain is still struggling in many regions with lots of PPE products unobtainable from pre-pandemic sourcing channels, the business supplies industry has demonstrated it can rapidly adjust and continues to pull together.

ISG, for example, has developed the Discover Your Next Move programme to assist members in navigating the ever-changing business environment being impacted by COVID-19 and other significant industry developments.

Explaining the rationale behind the strategy, Hoard says: “ISG doesn’t do this alone. We’ve incorporated members, vendors and various outside speakers to help ISG dealers adjust to the ‘new normal’, with valuable tools and information specifically dedicated to anticipating change.

Our goal is to help our members think and act in a proactive manner.”

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For more opinions on topics such as hybrid working, sustainability, the gloves market and new product developments, look out for our Xtra content in the March/April 2021 issue on opi.net

Every two years, global health and hygiene company Essity conducts its Essentials Initiative Survey, providing valuable information on attitudes, preferences and habits from around the world. The latest questionnaire was conducted digitally with about 15,000 respondents from 15 countries between December 2019 and January 2020.

A supplementary survey carried out in July 2020 involved hygiene and health questions concerning COVID-19. There were over 10,000 respondents in ten countries – France, Germany, Italy, Mexico, the Netherlands, Russia, Spain, Sweden, the UK and the US. Concerning the COVID-19 survey, some valuable key takeaways emerged. Since the spread of the virus, 68% have changed the way they wash their hands, seven in ten respondents said COVID would spread less quickly if people were better at washing their hands, and six in ten do not shake hands with others anymore.

However, the way people wash their hands differs quite substantially.

83% wet their entire hands with running water, and 82% apply enough soap to cover wet hands, but only 36% rub under their nails and 62% wash for 20 seconds or more (the recommended time to thoroughly clean hands). Meanwhile, 24% turn off a tap with a clean cloth or single-use towel, 55% dry their hands with a clean cloth or single-use towel, and 24% apply hand sanitiser after washing hands.

Staying with hand sanitiser, 33% of global respondents said it is more effective than washing hands, 21% don’t wash their hands but use sanitiser instead, while over two-thirds (69%) believe it is a good complement to handwashing.

Interestingly, when asked the main reason for not washing hands more often, 41% said they did wash their hands enough, but for those that didn’t, a lack of soap or hygienic soap dispensers in facilities was the top answer (15%). Next was access to proper handwashing facilities in public spaces (14%), then forgetting to wash hands and hand dryness (both 11%).

Overall, people have become more aware of health and hygiene in society over the past year. One in two survey respondents said their view of what products are essential in daily life has changed since coronavirus, with six in ten placing higher standards on the hygiene products they use. 61% stated product quality as the most important factor, while 55% considered the ability to reduce the risk of infection when buying hygiene products. Three in ten believe global hygiene standards need to be raised to prevent new pandemics.

To read the full report, visit https://reports.essity.com/2020-21/ essentials-initiative-survey.

CATEGORY UPDATE

Physical collaboration has taken a backseat over the past year. But communication has been as visual as ever – by Heike Dieckmann

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everal product categories in our industry have been catapulted to astonishing heights during COVID-19. Previously unsung heroes such as PPE and jan/ san firmly fall under that umbrella (see also ‘Prevention is better than cure’, page 32). Other segments, particularly traditional office supplies including filing, desktop accessories or paper, have seen steep declines.

Visual communications (viscom) sit somewhere in the middle. This is a sector that prior to the pandemic had enjoyed buoyant growth for some time. From a focus on better collaborative solutions in the workplace as well as in education settings – many of them increasingly interactive – to more environmental awareness and evolving style and fashion trends, a whole set of drivers propelled that growth.

But from Q2 2020, viscom quite literally had to go back to the drawing board and adjust to some new realities. Bizarre though it sounds, the category now comprises items that, in their vaguest remit, are part of the PPE and hygiene stable. Boards with surfaces which have antimicrobial properties, can withstand harsh cleaning materials or, quite simply, double up as space dividers, may not be new, but they’ve certainly enjoyed a phenomenal rise in popularity and have become standard requests among customers in the workplace.

As Susan Claus, Director of Marketing of the Ghent, Waddell and VividBoard brands at GMi

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Companies in the US, explains: “For years, our brand tagline has been ‘communicate, collaborate and learn’. That philosophy has not changed. Our products are still vital to communication, never more so than during times of crisis. A year ago, no one had heard of an acrylic desktop divider, a thermoplastic screen, or have a need to divide space as much as they do now.

“These items might not be what you call traditional communication products, but they all allow people to be in the same room and have face-to-face conversations safely. They have enabled employees to return to their offices and students to classrooms.”

MIXED FORTUNES How the various manufacturers – and their channel partners – in this segment have fared very much depends on who you talk to and the markets you’re talking about. Danny Berendsen, European Sales Director at Portuguese viscom vendor Bi-silque, says: “Overall, we had a 20% decrease in sales in 2020, driven by a significant decline within the traditional contract stationery and dealer channels.

“We saw a clear shift to digital, partly with pure online players and DIY stores that have been growing exponentially as they are more B2C focused; but also with wholesalers which have been focusing mainly on online dealers and directly drop-shipping to end users on their behalf.”

Elaborating on specific locations, he adds: “Scandinavia, the DACH region [Germany, Austria, Switzerland] and Benelux have suffered the

Above and bottom left: Bi-silque’s Magnetic Drywipe Safety Floor Signs

VISCOM TRENDS But while specifics differ vastly, some core trends can be applied fairly broadly. Demand for viscom products in the homeworking environment has soared, for example. As such, many operators have expanded their ranges to include more items catering for this sector.

Suzanne Tiernan, Head of Sales UK & Ireland at Dutch viscom mounting specialist NewStar, says: “We moved quickly to enrich our existing products to support the home and flexible worker. Laptop stands, phone holders as well as additional items in our core desk and wall mounting ranges all complement the mix in NewStar’s existing portfolio.”

Berendsen also refers to the home office market and the opportunities it brings: “Work-from-home is here to stay, even after the pandemic. Solutions like personal boards will therefore remain an important category. People need to organise and plan, and they use boards to do that. Most employees had to create a new working space at home, so this particular sub-segment has had a growth rate of 300-400% over the past year.”

As a result of viscom being used in personal spaces such as the home, product preferences have also changed, with wood frame boards, natural and coloured frames as well as chalkboards being popular. Interestingly – and to the detriment of B2B distribution – these products are predominantly bought through online and retail channels.

CHANGING NEEDS Other items that have witnessed record sales are display and signage products which communicate the new rules everyone has to follow. They are prolific in a wide variety of environments, among them factory floors, essential retail outlets and

ACCO SET TO GROW VISCOM FOOTPRINT Global vendor ACCO Brands has agreed to acquire leading Germany-based brand Franken through its Leitz subsidiary. Franken is a supplier of viscom products, boards, planning, creative and training items and, subject to the transaction being approved in early April by the German antitrust authorities among others, will join ACCO’s already well-known viscom brands Nobo and Quartet.

“In a reinvented post-pandemic Office 2.0, where there will be an increased focus on a physical ‘get-together’ for collaboration, meetings, brainstorming and co-creativity, [Franken] will give us a stronger position in the markets and categories where we operate,” stated Ard-Jen Spijkervet, Managing Director of Leitz ACCO Brands.

CATEGORY UPDATE Viscom

least from the lockdowns in the first wave of the pandemic as most businesses were operative and people could still go to the office if needed.

“On the other hand, Italy, Iberia and France have seen severe lockdowns where companies were urged to close their doors by the government.

It appears that these countries, however, were more cautious in the second wave in order to keep businesses and schools open.

“Our number one market is the UK, and here – on top of everything else – Brexit has complicated exports from Portugal into the UK, putting pressure on the required lead times and availability levels.”

education settings. And here, OP B2B resellers have benefitted too.

As the world begins to return to something approaching normality, demand for these viscom ranges will only accelerate, particularly in office spaces where historically popular items such as large boards – revolvers and flipcharts – have seen severe declines due to less physical collaboration in the workplace.

Demand has started to pick up again as customers have spaces they are committed to finishing due to back-to-the-office plans

Middle and below: NewStar’s NeoMounts Pro AV product & Ghent’s desk to floor partition

For more feedback on the viscom sector, see Xtra content in the March/April 2021 issue on opi.net

March/April 2021

Driven by the change in how employees operate and communicate now, NewStar’s Tiernan instead refers to growing interest in audiovisual (AV) communications. She says: “Last year, we launched the new NeoMounts Pro series, offering a complete AV range. The next step from this is to encompass LED solutions as part of the next generation of Pro AV.” Paul Kaminski, Director of Technology at US independent Innovative Office Solutions, agrees.

In this new age of virtual meetings, what customers have been asking for, he explains, is help with setting up video capabilities in conference and training rooms, and huddle spaces.

The future certainly looks positive, he comments: “Viscom is a category that is growing 8-10% per year. Demand has started to pick up again as customers have spaces they are committed to finishing due to back-to-the-office plans. There is not one remodel which does not include this category.

“The challenge is to keep it simple for customers to understand the solutions.

Importantly also, we work closely with our sales teams so they can introduce this category and bridge the relationship from office supplies buyers to IT buyers. Innovative Office Solutions has the ability to offer a single source and one project manager – that is a distinct advantage over our competitors.”

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HOW TO...

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In this How To… guide, Matthijs Rosman identifies the signs to look out for when your industry is being disrupted, and reveals some of the response tactics

t’s a time of unprecedented change.

In many respects, it is unchartered territory, as never in our lifetime have we experienced this kind of transformation with such impact. Our ability to adapt is being tested, and it’s not difficult to find ourselves exposed to some fundamental existential issues. We are truly encountering a reset.

What I like about the word ‘reset’ is that it embodies an opportunity. It allows us to take a hard look at who we are and what we want and can be – in life and as a business. COVID-19 is turning out to be a great disruptor. I believe in the mantra ‘never waste a good crisis’, and companies that are willing to use this reboot will come out on top.

We have the power to reinvent ourselves. To decode what we are and to recode ourselves to be fit for the future. The next couple of pages are dedicated to understanding the process of disruption and what to do about it.

relevant in the face of altered industry dynamics.

We often hear about turmoil related to start-ups, with seemingly insignificant players upsetting large companies – either forcing them out of business or leading a notable change in course.

Disruptors start by gnawing away at market share and then eating into profitability. Innovators establish a hold on a market while existing firms focus on improving their products and services for their most demanding clients.

The entrant taps into overlooked segments and gains a foothold by offering a proposition with more suitable functionality. When mainstream customers start to adopt the newcomer’s offering in volume, the market has been disrupted.

There is one of two trajectories for industry disruptors: the low-end position as just described, or the new market foothold. In the latter instance, start-ups establish a new market by providing a proposal to a segment previously uncatered for.

WHAT IS DISRUPTION?

As part of ongoing research on innovation performance, RevelX has found that more than 70% of respondents think their business will be disrupted. It can happen to any industry, and

Disruption is a process where major shifts in an industry’s order are brought about. Incumbent players must rethink their businesses to stay

ANY INDUSTRY CAN BE DISRUPTED

Signal 2: Your assets are underutilised Do you have assets that are idle most of the time?

In come the firebrands to use them and make their fortune. A prime example is Airbnb, which uses unoccupied beds and rents them out to customers. Asset-heavy industries are sitting ducks to disruptors.

Signal 3: Lack of transparency When an industry is clouded by a lack of transparency, be on the lookout for companies that are seeking to pierce the veil. To outsiders, non-transparent business models are suspect of hidden value.

Take the market for airline tickets. The pricing model was a complete black box until it was opened up by the likes of CheapTickets and Google Flights.

Signal 7: Too much focus on products/features When discussing the process of disruption, I talked about incumbent companies being overly focused on products and features for the most demanding customers. If you find yourself in that trap, a new entrant will be happy to pick up the crumbs from the business you left behind.

Signal 8: Attention from venture capitalists Lastly, when venture capitalists enter a market at speed, you can be sure transformation is round the corner. It’s a telltale sign there is money to be made in your industry.

When venture capitalists enter a market at speed, you can be sure transformation is round the corner.

It’s a telltale sign there is money to be made in your industry HOW TO RESPOND TO DISRUPTION Often, business leaders initially ignore the signs of upheaval. When they start to feel the effects of a sea change either through the loss of market share or erosion of profits, there is a fierce reaction. After a short mourning period, they start questioning the legality of the disruptor’s business practices and lawsuits follow. This is a destructive path.

So, what would be a better response? My advice would be to take matters into your own hands.

Innovate your way out. Here are some strategies.

Signal 4: Low or no added value When an industry includes players that add low or no worth, disruptors are keen to rationalise the value chain and make their money from trimming away some of the fat.

All manner of brands have gone direct-to-consumer and cut out the middleman.

It’s a gutsy move, but done well can deliver a lot of value and countless existing companies must contend with competitors going direct.

There is an obvious issue here. Many businesses are heavily invested in their current value chain, either by choice or as part of their legacy. Disruptors will not have this problem.

Signal 5: Platformisation When an industry is turning into a platform business either through the bundling of offerings or servitisation, be wary of newcomers. Attention from big platforms like Amazon is also a dead giveaway – they will closely monitor your sales and then decide whether to launch a version of your products under their own brand.

Open up It may sound counterintuitive but open your business up to potential disruptors. Unbolt the door for start-ups that may one day turn out to become a competitor and give them access to your infrastructure and resources. Better to keep (potential) enemies close and learn from them.

Take them out Buy the agitator. Combine your strengths with those of the disruptor and build new value. Be cognisant of leaving enough room for them to grow and flourish – in other words, do not suffocate them in your corporate system.

Matthijs Rosman is a Partner at innovative growth consultancy firm RevelX in the Netherlands. He is also the co-author of leading business bestseller ‘DARE – The Mindset of Successful Innovators in the Digital Age’

Copy fast Replicate the firebrand business model fast and use your market presence and strength to beat the disruptor to the punch. Beware you may lose the actual customer need you’re trying to address in a simple copy action.

Outperform the disruptor Become a better trailblazer than the disruptor. By adopting a mindset of continuous innovation, you leave no room for this intruder. Disrupt yourself.

Apply the same principles of revolution to your own business.

March/April 2021

Signal 6: Serious use pains If customers in a market experience serious pains in using your products or services, someone will come in and simplify the job for them. Smart digital tools make complex jobs easy.

A great example is the case of property and casualty insurance firm Lemonade. It uses smart digital tools to buy insurance coverage in minutes and settle claims rapidly.

HOW TO... Dealing with Disruption

with the lifespan of an average company under 20 years as it stands, 75% of the current S&P 500 firms will have disappeared by 2030.

There are eight leading indicators an industry is about to be sent into disarray.

Signal 1: Your assets are commoditising When company assets start becoming commodities, innovators will be around the corner. They will use your assets and build their business on top of it. Without the burden of having their own expensive assets, they will be far more profitable in no time.

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RESEARCH

Working WELL? For many, working from home has been both a blessing and a curse. OPI takes a look at recent research that reveals the impact homeworking has had on employee physical and mental well-being – by Michelle Sturman

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or most, a first anniversary is something to celebrate. The milestone we’re talking about here, however, may not be. March/ April 2020 signified the mandate issued by governments worldwide to ‘work from home if possible’, and many employees have not returned to the office since.

Plenty has changed for many during the past year in terms of setting up a more conducive working environment and figuring out a homeworking routine in lieu of the daily commute.

But the strain is showing, and recent research reveals that for a substantial number of people, the drawn-out work-from-home (WFH) situation is exacting a toll, both physically and mentally.

THE HAZARDS OF WFH Following on from its groundbreaking report The Work Colleague of the Future (see Spotlight, OPI December/January 2020, page 32), Fellowes Brands has released a new study on the effects of working from home.

The company’s New Way of Working survey highlights the detrimental effects of the enforced move to WFH. Based on feedback from 7,000 office workers across Europe – France, Germany, Italy, the Netherlands, Poland, Spain and the UK – the results show that, overall, 35% have experienced stress and anxiety, 37% have suffered a sore or aching back, and 71% have bought home office Percentage of equipment with their own money. office workers who said their home Tellingly, just over half of respondents (52%) said workstation their home workstation caused more aches, pains caused more and strains than their traditional workplace setup – aches, pains and with the greatest percentage in Spain (61%). strains than their Those based in Poland were most likely to suffer workplace setup from strained eyes – 61% compared to a global

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52%

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average of 41%. A substantial proportion of Polish homeworkers reported dealing with a sore and aching back (56%). Headaches were also a frequent complaint. Once more, Polish workers suffer the most (51%), followed closely by those in Spain (49%) and Italy (48%).

These results are hardly surprising. The interest in physical well-being in the workplace had already gathered momentum and created a demand for ergonomic furniture and accessories. However, the sudden decampment to homeworking meant employees abandoning their ergonomic workstations in the office for whatever space and makeshift ‘desk’ was available at home.

A Totaljobs survey undertaken in the UK of 2,000 workers from 24-27 March 2020 suggests the impact of forced homeworking on their physical well-being was instantaneous – 48%, for example, said their sleep was suffering and they were less active than before lockdown, which officially started on 23 March. An additional survey conducted six weeks later revealed that 40% were still experiencing some discomfort from their work setup, a decrease of just 5%.

Wildgoose Event’s 2020 Remote Working Employee study from June last year found similar results. The firm asked employees from 133 companies how WFH had impacted them and discovered that 45% felt less productive because of an uncomfortable work setup. Interestingly, those employed by large companies (over 1,000 staff) experienced the greatest dissatisfaction with their remote working configuration, pointing to an absence of allocated resources.

SLOW PACE OF CHANGE Not a lot seems to have changed in a year. The Disparity Begins at Home report from the Royal Society for Public Health (RSPH) was published in February 2021. Its snapshot survey revealed the most common WFH health or health-related issues included social isolation, less exercise, disrupted sleep and musculoskeletal problems.

Indeed, a paltry 28% of respondents worked from a dedicated home office, while 48% of those operating from a bedroom or sofa said they had developed physical issues.

Alarmingly, RSPH found just 1% of respondents were offered a screen protector to prevent eye strain by their employers. A woeful 5% were supplied with a keyboard and mouse gel mats, 7% with a desk and 8% a laptop cradle stand.

Only 17% were provided with a fully-adjustable office chair.

1%

Percentage of UK employees offered a screen protector to prevent eye strain by their employers

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more important to them than before COVID-19.

This was certainly the case for those residing in the US (76%) and the UAE (72%).

TAKING CHARGE OF WELL-BEING It’s not all doom and gloom. Studies also highlight that, generally, people feel happier and healthier in the current WFH culture. However, this is often offset by the harm working longer hours with the ‘always-on’ expectation is causing.

According to Microsoft’s Work Smarter to Live Better report, as a result of these pressures, 36% of employees said mental health and resilience resources were the most popular option to develop remote working skills.

The urgency of dealing with mental wellness was indicated in May 2020, when Dr Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization, commented: “It is now crystal clear that mental health needs must be treated as a core element of our response to and recovery from the COVID-19 pandemic.

It is now crystal clear that mental health needs must be treated as a core element of our response to and recovery from the COVID-19 pandemic “This is a collective responsibility of governments and civil society, with the support of the whole UN System. A failure to take people’s emotional well-being seriously will lead to long-term social and economic costs to society.”

Microsoft found that only 29% of organisations have introduced additional benefits and services to support employees’ physical and mental wellness. This is corroborated by Fellowes’ research, which discovered one commonality between respondents was the belief that employers care more about productivity, results, making money and operating well as a team than employee well-being.

With WFH expected to continue in the form of hybrid working post-COVID (see Research, OPI January/February 2021, page 46), it is clear employers must do much more to ensure the future physical and mental well-being of their staff.

March/April 2021

of es een

For more details on Fellowes’ New Way of Working survey, hybrid working and the impact on health and well-being for remote workers, listen to the OPI Talk podcast series with Louise Shipley.

Visit opi.net/podcast

RESEARCH Work-from-Home Well-being

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TACKLING MENTAL HEALTH But this is only half the story. In the workplace, well-being has been heavily skewed towards physical ailments and to a far lesser extent towards mental health. Figures from the United Nations – even before the onset of COVID-19 – estimate the world economy loses over $1 trillion a year because of depression and anxiety.

The Lancet Commission on Global Mental Health and Sustainable Development states that mental health issues exist along a continuum. As explained in a UN Policy Brief: COVID-19 and the Need for Action on Mental Health (13 May 2020), the pandemic has influenced where individuals are on that spectrum: “Many people who previously coped well are now less able to cope because of the multiple stressors generated by the pandemic,” it said.

“Those who previously had few experiences of anxiety and distress may experience an increase in number and intensity of these, and some have developed a mental health condition. And those who previously had a mental health condition may experience a worsening of their condition and reduced functioning.”

The abrupt switch to homeworking has brought mental wellness to the fore. This is unsurprising when considering numerous factors such as juggling work and homeschooling; small, cramped spaces in which to work; extended ‘office’ hours; and little separation between work and home life. Plus, having to deal with all this through a pandemic that has so far claimed the lives of over 2.5 million worldwide.

According to Fellowes’ aforementioned research, Spaniards are the most likely to suffer from stress and anxiety while working from home (52% vs a global average of 35%), followed by Italy (45%), the UK (34%) and France (33%).

Moreover, 65% of Spanish respondents were likely to agree to working longer hours at home, followed by Italy and the Netherlands (49%), and Germany (46%). Only 24% of those based in the UK agreed.

The Brits (25% vs a global average of 19%) were also most likely to say their employers encouraged them to take breaks and time away from their desks during working hours. On the flipside, Germans said employers never encouraged them to take breaks (29% vs a global average of 20%).

The prevailing common mental strains included feeling tired or a lack of energy (43%), being lonely or isolated (36%), and getting stressed and anxious (35%).

An interesting report, The Global Employee Health Study, by Aetna International and published last November, investigated gaps between employer and staff perceptions of wellness.

Conducted across the UAE, the UK, the US, and Singapore, the top employee health concern when working from home was gaining weight (43%).

Next came mental health issues (33%), followed closely by stress (31%) and musculoskeletal conditions (31%).

Over two-thirds (68%) indicated that mental health care provision from their employer is now

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RESEARCH

STANDING at the

CROSSROADS

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STATE OF THE INDUSTRY PREVIEW

ere the events of 2020 a definitive turning point for the global office products industry? Will 2021 continue the upheaval seen in the market in the last 12 months or will it settle back into something resembling what it used to be?

At this difficult time – and perhaps more so than ever – senior business supplies executives all over the world have no choice but to re-evaluate and redefine their strategies to successfully navigate the next few years. And they have plenty more questions:

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• Are traditional ‘core’ office supplies now just legacy products?

• Will the industry continue to see exponential growth in sales of janitorial and PPE items?

• Will demand for catering supplies through our channels begin to revive?

• Will demand for office furniture return to pre-COVID levels?

• Will the online players – and in particular Amazon – lose share as lockdown retreats?

• Will managed print service (MPS) arrangements reclaim the share lost to transactional sales of printer consumables?

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LEARNING FROM LEADERS All these questions demand reliable answers from trusted sources. The State of the Industry 2020-2021 is the eighth edition of the annual research study conducted by Martin Wilde Associates (MWA) and OPI. It provides those answers, and many more, by asking some of the best minds in the industry – the senior executives running the major OP companies around the world.

Based on in-depth and online interviews with these executives in Australia, Benelux, Canada,

France, Germany, the UK and the USA, the report this year will focus particularly on the crucial KPIs that the COVID-19 crisis has been affecting.

What, for example, were respondents’ overall revenue and margin trends in 2020 and 2021 and which product categories make up the bulk of those sales? What was/is the value of the core OP market in 2020 and 2021? And what role did Amazon play in terms of its share of the core OP market in each country in 2020? Will survey respondents fight back this year against any share takings?

There’s no question about the many adaptations companies have had to make to their businesses to weather the storm in 2020

To order your copy, visit www.opi.net/ SOTI2021. The report is available for £899 (approx. $1,250) and will be published in May 2021

Indeed, how important was online shopping in 2020 overall and will this trajectory continue?

To what extent did the pandemic affect average order values? As regards the logistics side of things, what share of resellers’ deliveries were to home addresses in 2020 – what will this share likely be in 2021?

There’s no question about the many adaptations companies have had to make to their businesses to weather the storm in 2020. The interview responses will provide an insight into those changes as well as a plan of recovery for this year.

Our industry is undoubtedly standing at a crossroads in 2021. More than ever, your future business strategy needs reliable, informed input from peers and competitors – the State of the Industry 2020-2021 report provides exactly that.

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OPI GLOBAL FORUM ONLINE PREVIEW

ADDRESSING the PRESSING issues

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ittle did we know when COVID-19 first hit the world over a year ago that in-person events, certainly anything of a global, border-transcending nature, would be struck off the agenda not only in 2020, but also well into this year. At a time when, quite possibly, there has never been a more urgent need to get together and talk. As such, and rather than postponing the event to a pandemic-friendlier period, OPI has decided to hold its ninth Global Forum at the planned time but virtually.

Taking place from 5-6 May 2021, the conference will draw on the rich experience gained from the European Forum Online in November 2020 (see Event, OPI January/ February 2021, page 51). The premise then was clear – and unanimously applauded by delegates: bring in top-level speakers from within and outside the business supplies industry, cover today’s pressing issues and, as much as possible, do both in a highly interactive way.

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INTERACTIVE AND INTIMATE A core topic of discussion for everyone right now – attendees themselves or their customers – is the changing workplace. What will it look like and what does it mean for the products and services that need to be provided, in the office as well as the home workspace?

This is how the event will kick off on 5 May. Andrew Mawson of workplace management consultancy Advanced Workplace Associates will shed some light, not hiding behind a PowerPoint presentation, but engaging delegates in a virtual Q&A session which will provide real answers to real questions.

Delving deeper still, this will be followed by a panel discussion featuring a number of high-profile executives from within and outside our sector, including Innovative Office Solutions’ Jennifer Smith and Brother UK’s Phil Jones.

Responding to requests for small breakout sessions, the rest of the day will be spent in various tracks of quick-fire interviews and intimate roundtables. Topics covered comprise industry best-practice success stories, specific vendor

themes, B2B e-commerce and marketplace realities, and global shipping and logistics challenges, to name but a few.

To allow delegates to attend more than just one of the tracks and roundtables, these will be repeated the next day. Before that, however, on day two, John Ghiorso is going to impart his vast knowledge learnt at Orca Pacific, the full-service Amazon agency he created to bring cutting-edge strategies and managed services to industry-leading global brands.

While this is another interactive Q&A, it is also the session to sit back, listen, take notes and be amazed by what Amazon strategies can be implemented to achieve sustainable and profitable growth.

We’ve been working on a programme that is on point, provides plenty of practical ideas and allows delegates to make informed, strategic decisions

For more information about the OPI Global Forum Online and to register, please visit opi.net/GF2021

BROADER REACH Typically, while always having a solid international contingent at the Global Forum, the majority of delegates tend to come from North America, the usual location being Chicago. With no considerable financial or time constraints (other than potentially having to attend very early or late depending on where you are), the online nature will make for an excellent geographic spread of attendees, but also for a balanced channel blend where vendors, wholesalers and resellers of varying sizes can learn, mix and mingle.

The last of these – networking – is one of the core components and highlights of OPI’s physical events. Though this can never be truly replicated virtually, delegates will have plenty of opportunities to chat, one-to-one or in small groups, to their peers, exchange ideas and prepare for the – hopefully COVID-free – future.

OPI CEO Steve Hilleard says: “Virtual or not, no other event brings together such a comprehensive audience of industry leaders. We’ve been working on a programme that is on point, provides plenty of practical ideas, and allows delegates to make informed, strategic decisions to ensure their businesses succeed going forward. We’ll do that in two half days and without attendees suffering from severe Zoom fatigue.”

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EUROPEAN OFFICE PRODUCTS AWARDS REVIEW

ZOOMING in…

The CLASS of 2021 The words resilience, resourcefulness and reinvention took on a whole new meaning this year, as the 2021 EOPA winners were crowned

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elebrating the winners of the European Office Products Awards (EOPA) virtually was certainly not what the OPI team had in mind this year, especially given that 2021 marks the 20th anniversary of the EOPA. However, the reality of this didn’t take anything away from the award winners and the richly-deserved trophies they received in a variety of Zoom presentations with the OPI team and the EOPA judges in early March.

Quite the opposite. To be shortlisted alone in this pandemic-dominated year is an achievement and testament to resilience, ingenuity and a lot of hard work. To win is exceptional.

Unsurprisingly, the success of the winners was closely linked to how they responded to the challenges of COVID-19. There were only six this year, as the categories had been severely trimmed to really highlight the outstanding products, companies and individuals of 2020.

Agility and unprecedented pace in doing what had to be done has been a common denominator for all of them – be that in the area of product innovation and availability, online excellence or continued investment in a difficult climate.

As OPI CEO Steve Hilleard said: “2020 has been an incredibly challenging year for so many. As such, the team at OPI was even more humbled by the enthusiasm shown yet again for the EOPA. I would like to sincerely thank the many companies for entering or nominating candidates, the judges for taking the time out of their no doubt busy schedules to evaluate those candidates and the winners for being part of our first-ever virtual awards ceremony.

The EOPA are always a great reflection of an industry that refuses to be defeated by challenges “The EOPA are always a great reflection of an industry that refuses to be defeated by challenges – 2020 perhaps proved that more than any other year. I cannot wait to raise, when we’re allowed again, a glass in person to every single EOPA winner – to our whole resilient and fantastic industry in fact.”

EVENT EOPA

BUSINESS PRODUCT OF THE YEAR

Winner: 3M – Scotch Flex & Seal Shipping Roll In this category, the judges, among other things, were looking for innovation, quality and benefits for the consumer and the reseller. As expected, many of the entries for this award were COVID-related solutions, which have helped to not only save lives, but commercially contributed to manufacturers and resellers weathering the storm.

The winning product, 3M’s Scotch Flex & Seal Shipping Roll, was not actually born out of COVID, but definitely tapped into the opportunity that the pandemic brought in terms of an unprecedented surge in online orders and deliveries. It’s also extremely relevant bearing in mind the very high number of small parcels currently being sent directly to home addresses.

This packaging solution is simple: it can be used for any sized or shaped object without any wastage of packaging. Its three-layer construction provides a durable outer layer that is water and tear-resistant, a cushioning middle layer, and an inner layer which sticks securely to itself – not the item. There’s no need for tape, padding material or cardboard boxes – just cut, fold and press, label and send.

The EOPA judges felt that the commercial success of the Scotch Flex & Seal Shipping roll is a little untested as yet, as the product only launched in several European markets in October 2020. But early figures look hugely promising and the consensus was that this is a highly innovative product which will see phenomenal success and be around for many years – COVID or not.

Aidan McDonough

Steve Hilleard

Gareth Farrell

Debbie Nice

Janet Bell

VENDOR OF THE YEAR

WHOLESALER OF THE YEAR

Winner: JGBM The shortlist for this award again featured some well-known names from across the European business supplies industry. Wholesalers have undeniably had to move out of their comfort zone over the past year, explore new sourcing avenues and provide much-needed assurance to their reseller partners that were scrambling for products they had never sold before or, if they did, in minuscule quantities.

This year’s winner, UK-based JGBM, is a very familiar player on the EOPA circuit, having won the same award back in 2016 and being shortlisted every year since (and also in 2015). 2020 was the time when this comparatively small and somewhat niche operator – its core remit is office machines – came into its own again.

Highly entrepreneurial in its approach, hugely adaptable to surges in demand and reassuringly knowledgeable in times of heightened customer needs and demands – that sums up JGBM in a nutshell.

The work-from-home reality of the past 12 months – a curse for some, a blessing for others – played beautifully into JGBM’s product portfolio and in-depth knowledge while its long-honed online expertise helped its dealer partners to successfully compete in a spiralling e-commerce world (for more on JGBM’s initiatives, see Spotlight, OPI January/February 2021, page 44).

Furthermore, this category has faced intense scrutiny due to heightened standards and legislation, not to mention entirely new product priorities.

Essity – its Professional Hygiene division includes the well-known Tork brand – has not been immune from the many challenges but, according to the EOPA judges, has dealt with

Pieter Wolters

them admirably: “tremendous job”, “great support” and “good supply and availability” were terms that came up in the heated debates for this popular trophy. Hugely importantly also was communication in this most difficult of years. And here, as all the feedback from resellers and distributors proved, Essity has absolutely excelled.

Jos Zimmerman

March/April 2021

Winner: Essity The 2021 Vendor of the Year award goes to a company at the very heart of the COVID-19 pandemic – health and hygiene. It’s certainly true that the cleaning category has never received more attention or been more important than over the past year (see also Final Word, page 54). As such, it’s fair to say the winner – Sweden-based Essity – has had a captive audience.

But while demand in some verticals has been skyrocketing, it’s also true that operators like Essity have had to endure a staggering loss of revenue in others due to the closure of businesses, including entire sectors such as hospitality.

From left: John George, Carol Clarke & Mike George

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EOPA EVENT

RESELLER OF THE YEAR

Winner: Printus/OTTO Office Typically, this award is split into two: Reseller of the Year in the over and under €100 million category. This year, the decision was made to combine them and award just one trophy. And it’s easy to see why. As the EOPA judges said, just surviving in the current climate is impressive; excelling is superlative.

The criteria refer to sales performance, fill rates and delivery reliability. These were incredibly hard to meet at a time when entire product categories fell off a revenue cliff and whole customer demographics ceased to temporarily exist. But other requirements, such as successfully launching new service offerings, developing novel ranges and – never more so than this past year – making quite radical shifts to e-commerce and m-commerce, were certainly met by OTTO Office, part of the Printus stable.

This reseller, which commands huge trust and respect from its industry partners, has done an excellent job at switching its catalogue business to online. Its fast decision-making also enabled it to source and make available online a range of entirely new products, in the cleaning, PPE and home office categories for instance, during a period when everyone was scrambling and demand was soaring.

Highly commended: Amazon

INDUSTRY ACHIEVEMENT

Winner: Richard Scharmann The final EOPA – and this year is no different – always goes to an individual who has had a significant impact on our sector. The judges are looking for

www.opi.net

Jonathan Smith

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Dan & Lidia Fati

Siegfried Sorg & Mary-Victoria Gerardi-Schmid

Steve Hilleard

PROFESSIONAL OF THE YEAR

Winner: Dan Fati Professionalism and enthusiasm for the sector, leadership ability and a direct contribution to the success of their business – these are attributes the EOPA judges were looking for in the winner of the Professional of the Year award. Dan Fati from independent Romanian reseller Dacris displayed all of them in spades.

Making things happen was Fati’s motto over the past year.

This endeavour transcended many areas. These included: keeping its workforce of 254 safe, motivated, trained and productive; sourcing, securing, marketing and distributing a wide range of COVID products; and upping its online capabilities – and the resources this required – to make its web store a go-to destination.

Financially speaking, Dacris ended 2020 on a par with 2019, posting revenues of €24 million ($29 million), with coronavirus-related products accounting for 20% of these sales.

Fati co-founded Dacris with two other family members back in 1993. He’s always been a progressive leader, willing to think outside the box and keen to invest both in his business and its staff. 2020 was the year when collaboration with all parts of the supply chain, compassion for his employees and no small amount of composure in the face of considerable adversity really paid off.

someone with excellent leadership skills and outstanding competencies in the channel(s) they operate in as well as involvement in and contribution to the industry as a whole.

This year’s winner – Richard Scharmann, CEO of Austria-based PBS Holding – fulfils all of the above criteria and more. Having spent his entire career at this multichannel organisation that is focused on Central and Eastern Europe, Scharmann has always closely monitored and fostered organic growth while also investing in new opportunities, aware of consolidation trends in Europe’s markets.

The acquisition of Office Depot’s Central Europe operations in late 2019 has been the most sizeable of recent investments, while just in February – after the EOPA judges meeting – PBS Holding added Staples Solutions’ Global Accounts Team to its tally.

Scharmann knows every facet of his company inside out and over the

Richard Scharmann

years has earned the respect and trust of industry peers, partners as well as, indeed, competitors. He is also a well-known and much-liked pundit on the international conference circuit, where he often expertly and collaboratively shares his insights and knowledge.

5 MINUTES WITH...

CAREER Q&A

Margee Witt

Describe your current job.

CEO and leader of an amazing team of dedicated, hardworking professionals at Blaisdell’s Business Products in Oakland, California.

What’s your life philosophy?

Live in gratitude. I have much to be thankful for.

What makes you happy?

Cooking for and spending time with our five children and three grandchildren.

What do you do in your spare time?

I love to bake – it’s very relaxing to me.

Early bird or night owl?

Absolutely early bird. Ask anyone about my 5am emails.

Margee Witt, Blaisdell’s

What’s your worst character trait?

Some might say I can be a bit controlling.

OK, a lot controlling.

If you weren’t doing your present job, what would you like to be doing?

I’d probably start another business.

Maybe a bakery?

What would you cook for a dinner party?

Anything Italian. Having family over for polenta and Italian sausage, for example.

Favourite time of the year?

Spring – I love the new foliage and flowers popping up.

Best compliment you’ve ever received?

That my daughter looks like me.

Where would you most like to visit?

I would love to go back to Banff in Canada and fly fish again. What an amazing place.

the Witt family Christmas bake-off with

What’s your most prized possession?

Our dog Olive. She’s at the heart of our family and business.

What’s your guilty pleasure?

Long, leisurely baths.

Who is your biggest inspiration?

My husband.

What skill would you like to master?

I wish I could play the piano like a pro.

What irrational fear do you have?

I can’t handle the sight of blood.

www.opi.net

What subject should be taught in schools?

They should teach kids the basics of home/ personal finance.

52

Your worst-ever job?

My first job at the age of 15 when I was hired by Kmart to be a security guard/bag checker. What were they thinking? I didn’t last long.

Best moment in your career?

When I recruited my husband Mike to join the company (he’s now COO). We work really well together and share the same passion for the business.

Worst moment?

What we’re experiencing right now and the fallout from the pandemic. It has ravaged our industry on so many levels. It’s gut-wrenching to watch 30+ years of hard work wither away, seeing customers go out of business every week and having to furlough valued employees.

Your favourite office product?

I have a Swingline stapler on my desk that has been with Blaisdell’s for more than 50 years!

FINAL WORD

The new S U C F O IE S HYGIENE L P P U S Y IT IL C FA

Y & P P E /S A F E T

W

STANDARD

ashrooms, historically, have not been top of mind, a key priority or a compelling concern for companies. Then came 2020.

Hygiene – and with it, workplace washrooms – has become more important than ever. Staff members and visitors in the age of COVID-19 have a new desire for accessible and reliable hygiene and need to have it at their disposal so they can wash and dry their hands frequently.

But are washrooms in companies around the world ready?

Perhaps the most paramount and long-lasting impact of the pandemic is an expectation of universal access to excellent hygiene in lavatories, in terms of how they are designed as well as stocked. I believe this new demand will shape the whole approach to this part of a company’s facilities for years to come.

As the pandemic reaches its one-year milestone, we have seen a fundamental change in mindset – from washrooms providing a basic service to them being a vital component of a healthy workplace. This shift was evident in a recent survey Essity carried out with over 10,000 people about their attitudes towards public toilet facilities:

www.opi.net

• 81% of respondents said they expect washrooms to provide a safe hygienic environment to a higher extent than prior to COVID-19.

• Three in four people want their employers to conduct extra cleaning rounds.

• 47% demand increased hygiene standards in their office washroom.

• 15% said a lack of soap or hand towels had prevented them from washing their hands.

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HEIGHTENED EXPECTATIONS With expectations considerably higher than pre-COVID and in order to improve workplace health and safety, office managers need to ensure washrooms are kept reliably well-stocked with all the necessary products.

Using advanced data and digital services can make this an easy process, while also reducing the number of facility checks and restocks staff need to carry out. In addition, they reduce interpersonal exposure in what are typically small room environments.

Connected dispensing systems supply data that identifies the right moments to clean and the right time to restock, not to mention provide reporting and analytics. This, surely, is the future of safe and hygienic washrooms.

SUSTAINABLE HYGIENE Today’s workforce expects not only a hygienic workplace, it also wants to be reassured all the products in it are sustainably made and handled. We call this sustainable hygiene management and I believe this is the new standard in the modern office.

Whether they are products in washrooms, breakrooms or kitchens, they should all be made sustainably (with recycled content or sustainably sourced fresh fibre). Soap and sanitisers in particular need to have relevant eco labels and safe ingredients. One-at-a-time dispensing is equally important to reduce waste volume where possible and promote environmentally-driven waste recovery.

Don Lewis, President, Essity Professional Hygiene

When employers equip their premises with hygienic products in all areas where staff congregate, they show that they care about employee well-being Research conducted by Essity in the second half of 2020 showed the pandemic has accelerated expectations around sustainability.

As such, companies that wish to attract and retain talent and customers will be in sync with society’s expectations when sustainable hygiene management is practised.

The workplace has become a challenging new environment and needs careful navigation. To support companies in their approach and learning, our Tork brand has launched a new ‘Secure the New Hygiene Standard’ web portal which contains information, advice and downloadable posters featuring health tips and hand hygiene reminders that employers can post in their washrooms.

At the same time, our series of ‘Safe at Work’ toolkits contain guides and product information customised for a wide range of work environments.

Good hand hygiene is crucial in the fight against COVID-19 and other illnesses. Every company wants its workforce to be and remain healthy. When employers equip their premises with hygienic products in all areas where staff congregate, they show that they care about employee well-being. The office washroom where most hand hygiene takes place is one such area.

It’s time it’s given the respect it deserves.

Essity won the Vendor of the Year award at the 2021 European Office Products Awards (see page 48 for our full review).

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