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American Morning

Minding Your Business: MIA: Office Supplies

Aired August 22, 2003 - 07:45   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BILL HEMMER, CNN ANCHOR: It is that time of year, Soledad, when apparently the office supplies seem to...
SOLEDAD O'BRIEN, CNN ANCHOR: Yes, it is, Bill.

HEMMER: It's always that time of year, in fact -- seem to disappear from businesses right around back-to-school time. This is scientific now, folks. And Sherlock Holmes has been working on it -- otherwise known as Andy Serwer.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, and no (UNINTELLIGIBLE), Sherlock.

Yes, good morning to you, guys.

This is one of America's dirty little secrets, isn't it?

HEMMER: Yes.

SERWER: Raiding the office supply closet. And you're right, absolutely, this time of year things seem to disappear a little more than unusual. Parents snarfing -- snarfing stuff for their kids -- pens, pencils, highlighters, paper clips, everything.

Now, it's not that scientific, Bill, but the people at Staples say their big customers order $50,000 more than usual this time of year. Office Max is saying the same thing. Yes, their big customers ordering more supplies to restock their supplies.

HEMMER: Did you do this research upstairs at Time-Life?

SERWER: I have noticed maybe a little bit of this.

O'BRIEN: While he was taking some notebooks and some Bic pens.

SERWER: But I am not guilty of this. You know, I don't do any of that stuff. I really don't.

HEMMER: I had said earlier we need to check your pockets. Do we?

O'BRIEN: Really?

SERWER: I don't. I mean, no, I do not do that. I mean, life is too short. I mean, what if -- how embarrassing, how stupid would you look if you got caught walking off with a bunch of highlighters for 3.99. Check it out. This is a CNN pen, you can tell. It's high quality job.

HEMMER: Get it while it lasts.

SERWER: But, back-to-school shopping is actually looking up -- we should talk about that a little bit -- for the first time in a couple of years. We have real hard numbers here to show why.

Why is back-to-school up this year? Well, there are a bunch of reasons. Look at this. It really tracks the economy, you guys. Look at that, 2000 was a peak right after the market. Then, we dipped in 2001, and then we dipped again in 2002. Now up a little bit maybe, just like the economy in 2003. Why? Tax refund checks, tax rates are lower, low interest rates, refi activity, and the markets up a little bit.

So, people feeling a little bit more confident, a little bit more money in their pockets.

O'BRIEN: Four hundred fifty-one dollars worth of pens and notebooks?

SERWER: No, that includes clothes.

O'BRIEN: Oh, OK.

SERWER: And the average person is spending...

HEMMER: And backpacks?

SERWER: Yes, backpacks, the back-to-school. The first day outfit is so important, right?

O'BRIEN: OK. Yes.

HEMMER: Thank you, Andy.

SERWER: Yes.

HEMMER: A quick check of the markets?

SERWER: It looks like we're kind of mixed this morning. Another up day. You know, August is shaping up to be not a bad month. And, historically, it's been a lousy month. This year is looking good. This is the numbers from yesterday, another little (UNINTELLIGIBLE).

HEMMER: And here, we thought all of those traders were out in the Hamptons for August.

SERWER: Well, that's why we're going up, because retail investors are buying (UNINTELLIGIBLE).

HEMMER: That's a good line.

SERWER: Yes. HEMMER: Thanks, Andy.

SERWER: OK, see you later.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.







Aired August 22, 2003 - 07:45   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: It is that time of year, Soledad, when apparently the office supplies seem to...
SOLEDAD O'BRIEN, CNN ANCHOR: Yes, it is, Bill.

HEMMER: It's always that time of year, in fact -- seem to disappear from businesses right around back-to-school time. This is scientific now, folks. And Sherlock Holmes has been working on it -- otherwise known as Andy Serwer.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, and no (UNINTELLIGIBLE), Sherlock.

Yes, good morning to you, guys.

This is one of America's dirty little secrets, isn't it?

HEMMER: Yes.

SERWER: Raiding the office supply closet. And you're right, absolutely, this time of year things seem to disappear a little more than unusual. Parents snarfing -- snarfing stuff for their kids -- pens, pencils, highlighters, paper clips, everything.

Now, it's not that scientific, Bill, but the people at Staples say their big customers order $50,000 more than usual this time of year. Office Max is saying the same thing. Yes, their big customers ordering more supplies to restock their supplies.

HEMMER: Did you do this research upstairs at Time-Life?

SERWER: I have noticed maybe a little bit of this.

O'BRIEN: While he was taking some notebooks and some Bic pens.

SERWER: But I am not guilty of this. You know, I don't do any of that stuff. I really don't.

HEMMER: I had said earlier we need to check your pockets. Do we?

O'BRIEN: Really?

SERWER: I don't. I mean, no, I do not do that. I mean, life is too short. I mean, what if -- how embarrassing, how stupid would you look if you got caught walking off with a bunch of highlighters for 3.99. Check it out. This is a CNN pen, you can tell. It's high quality job.

HEMMER: Get it while it lasts.

SERWER: But, back-to-school shopping is actually looking up -- we should talk about that a little bit -- for the first time in a couple of years. We have real hard numbers here to show why.

Why is back-to-school up this year? Well, there are a bunch of reasons. Look at this. It really tracks the economy, you guys. Look at that, 2000 was a peak right after the market. Then, we dipped in 2001, and then we dipped again in 2002. Now up a little bit maybe, just like the economy in 2003. Why? Tax refund checks, tax rates are lower, low interest rates, refi activity, and the markets up a little bit.

So, people feeling a little bit more confident, a little bit more money in their pockets.

O'BRIEN: Four hundred fifty-one dollars worth of pens and notebooks?

SERWER: No, that includes clothes.

O'BRIEN: Oh, OK.

SERWER: And the average person is spending...

HEMMER: And backpacks?

SERWER: Yes, backpacks, the back-to-school. The first day outfit is so important, right?

O'BRIEN: OK. Yes.

HEMMER: Thank you, Andy.

SERWER: Yes.

HEMMER: A quick check of the markets?

SERWER: It looks like we're kind of mixed this morning. Another up day. You know, August is shaping up to be not a bad month. And, historically, it's been a lousy month. This year is looking good. This is the numbers from yesterday, another little (UNINTELLIGIBLE).

HEMMER: And here, we thought all of those traders were out in the Hamptons for August.

SERWER: Well, that's why we're going up, because retail investors are buying (UNINTELLIGIBLE).

HEMMER: That's a good line.

SERWER: Yes. HEMMER: Thanks, Andy.

SERWER: OK, see you later.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.