01-15-97 - Laserfiche WebLink

Home Browse Search

Q S�I\T 1'%,1.f'IV�F-,fR PRLSS S 19 TH DECEx18ER '.'^a+ THI RSD\1 I Q - Mum?... .... d...1�.►IA..�I..Na ACOutSITIONS v 50 full-time positions lost in St. Paul Book closings JIM McCARTNEV 57 4F v;a'-Ea ees will be affected by the store closings. store closings. which are expected to occur late next "In most normal acquisitions.the name S��++ month. All will be eligible to apply for converts to Corporate Express.' Holm• Corporcrie t. Paul Book S Stationer. one o[ the other job openings at the company,but it Strom said "Since St. Paul Book is an oldest companies in St. Paul. plans to is unclear how mam' matches might be old, established name. there will be a close six of its seven retail outlets in the made,said Tom Holmstrom, president of longer transition.'* E pR�SS Twin Cities.and eventually plans to drop the company. Corporate Express. a fast-growing sup- its name in favor of its new corporate Holmstrom did not have an estimate plier of office products and services parent—Corporate Express. on the number of pan-time and seasonal About 50 full-time. permanent employ- workers who also will be affected by the CLOSINGS= c'.2E CLOSINGS Holmstrom said. "Retailing has been the most visible side of St. Paul Book — our V CONTINUED FROM I E commercial business has been a well-kept secret," Holmstrom said. based in Broomfield, Colo., essen- Corporate Express bought the tially wants to focus on schools 145-year-old St. Paul Book & Sta- • and commercial clients in the Up- tionery last month from Mankato per Midwest market. businessman Glen Taylor, who But Holmstrom acknowledged bought the company in 1990. Be- that the retail office supply busi- sides his printing and banking ness faces a very tough competi- businesses, Taylor also is the own- tive climate with the rapid growth er of the Minnesota Timberwolves of such category killers as Office professional basketball team. Depot and Office Max. Corporate Express has more Corporate Express typically en- than 700 locations, including 100 ters new markets through acquisi- distribution centers, and 22,000 tions and grabs market share employees. It has more than dou- through aggressive price cutting, bled in size through acquisitions in according to analysts. That can be the United States, Europe, Austra- good news for customers, but lia and New Zealand in the last promises a changing environment year. for Twin Cities suppliers. The company was spun off from Unaffected by the closing will OfficeMax Inc. in a public stock be St. Paul Book & Stationery's offering in March 1995, and it corporate store in Arden Hills and bought back OfficeMax's shares in its 10 locations in outstate Minne- September 1995. sota, Iowa and Wisconsin. Those The office supply industry has locations fit the Corporate Ex- undergone rapid consolidation, press' commercial emphasis by with the number of dealers serving commercial clients as well shrinking to 6,000 today from as walk-in traffic in those areas. 12.000 a decade ago. The remaining locations also face Other big competitors in the less competition from the catego- corporate office-supply industry ry killers. are also rapidly expanding While retail sales accounted for through acquisition. Besides Cor- nearly half of St. Paul Book & porate Express, the key plavers Stationery's business five years are Boise Cascade Office Products • ago, it now accounts for about 10 Corp., BT Office Products Interna- percent of the total revenues, tional and U.S. Office Products.