Stores are friendly, fun places to work
Employees are happy with benefits
Easy to transfer from store to store or department to department
Employees believe their pay is only OK and that there are few incentives for sales associates to sell
Employees like that they work for an industry leader and enjoy job security, but many of the company's 89,000 workers grumble about the pay.
Staples is the leading operator of office supply superstores in the US at a time when demand for traditional office supplies is waning. It sells a wide range of office supplies (papers, pens, stickies, notebooks, folders, clips), as well as office furniture and computers and printers through more than 1,400 Staples stores in the US and Canada. The company also offers business and technology services (through Staples Business Advantage), an area it hopes to expand. In addition to its retail locations, Staples markets its products and services online, with a direct sales team, and via mail-order (through subsidiary Quill and other operations). The company was bought by Sycamore Partners, a private equity firm, for about $6.9 billion in 2017.
Change in Company Type
Staples became a private company with the $6.9 billion acquisition by Sycamore Partners, a private equity firm with a strong concentration in retail. Its other retail holdings include Talbots, Belk, Dollar Express, Nine West, and Hot Topic. As with other companies in changing industries, Sycamore and Staples are betting that as a private company Staples can more swiftly adjust its business model to shifting buying habits than as a public company.
Geographic Reach
Staples operates in the US and Canada. It has some 1,150 retail locations across the US and about 300 in Canada. Prior to its 2017 acquisition by Sycamore Partners, the company had sold or was selling its international holdings.
Sales and Marketing
Staples serves individual consumers as well as small and midsized businesses and large enterprises. It targets customers through multiple channels, including direct sales, e-commerce, mobile, AI-powered “conversational commerce” (chatbots), and retail.
The company's marketing strategy has changed in the past year or so as it emphasizes business services instead of retail stores full of office supplies.
Financial Performance
Prior to the 2017 acquisition by Sycamore Partners, Staples' revenue had been in steady decline due to weak sales and store closures in North America combined with fierce competition from e-commerce office suppliers and Office Depot.
Strategy
Just like its primary competitor, Office Depot, Staples needs to transition from a traditional office products supplier to a business and technology services provider. Its 2017 acquisition by Sycamore Partners should allow it more room to implement this turnaround outside the scrutiny that comes with being a public company. Some progress has already been made in this area, as about 60% of sales now come from e-commerce, subscription services, and other non-retail avenues. Staples plans to generate only 20% of revenue from retail by 2020.
Related to the transformation mentioned above, the company has been aggressively closing retail stores. It closed more than 350 locations in North America between 2014 and 2017, with additional closures planned for 2018. In addition, to better focus on North America, Staples exited most of its international businesses, including operations in Europe (primarily the UK), Australia, Asia, and South America.
The third element of the company's strategy, called the 20/20 Plan when it was launched in 2016, includes restructuring and optimization to cut costs. Staples plans to save some $300 million by the end of 2018 by reducing product costs, reducing fixed costs in retail stores, and making its supply chain more efficient, among other initiatives.
Mergers and Acquisitions
In 2018 Staples agreed to acquire Illinois-based office supplies company Essendant in a deal valued at some $996 million (including debt). The move should accelerate growth and stengthen Staples' reach with office products dealers.
500 STAPLES DR
Framingham, MA 01702-4474
Phone: 1 (508) 253-5000
Employer Type: Publicly Owned
Vice Chairman: Joseph G. Doody
Vice Chairman and Chief Administrative Officer: Jeffrey Hall
Chairman: Robert E. Sulentic
Employees (This Location): 2,500
Employees (All Locations): 77,440
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Staunton, VA
Sterling, VA
Vienna, VA
Warrenton, VA
Williamsburg, VA
Winchester, VA
Woodbridge, VA
Barre, VT
Bennington, VT
Brattleboro, VT
Rutland, VT
South Burlington, VT
Williston, VT
Aberdeen, WA
Auburn, WA
Bellevue, WA
Bothell, WA
Burien, WA
Chehalis, WA
Everett, WA
Issaquah, WA
Kent, WA
Lynnwood, WA
Mill Creek, WA
Moses Lake, WA
Port Orchard, WA
Puyallup, WA
Redmond, WA
Renton, WA
Richland, WA
Seattle, WA
Silverdale, WA
Spokane, WA
Walla Walla, WA
Delavan, WI
Fond Du Lac, WI
Janesville, WI
Madison, WI
Milwaukee, WI
Monona, WI
Onalaska, WI
Oshkosh, WI
Plover, WI
Wisconsin Rapids, WI
Beckley, WV
Charleston, WV
Charles Town, WV
Clarksburg, WV
Casper, WY
Jackson, WY
Laramie, WY
Rock Springs, WY
Montréal, Canada
Sainte-Rose, Canada