SPLS Overview

Founded in 1985, by Thomas Stemberg, Staples Inc. (SPLS) is the world’s largest office supply company, with more than 2,000 stores worldwide. While working on a proposal at his current position, Stemberg went in search for a printing ribbon but was unable to obtain one at his local retailer due to the observance of Independence Day.

With a background in retailing himself, Stemberg took it upon himself to come up the innovative concept of an office supply store. In 1986, the first store opened in Brighton, Massachusetts. The company is currently headquartered in Framingham, Massachusetts.

Operating as a retailer of office supplies, Staples carries a wide range of consumer products, varying from office supplies, services, and business machines to computers, related products, and office furniture. In addition, the company also offers high-speed, color and self-service copying services, faxing, and pack and ship services.

Within their business model, Staples currently conducts their practices under three segments, North American Retail, North American Delivery, and International Operations. The North American Retail, which consists of more than 1,700 stores throughout the U.S. and Canada, operates in three segments of its own, Staples Business Delivery, Quill and Contract.

The Staples Business Delivery operation combines the activities of its direct mail catalog business with its Staples.com website and its Canadian Internet sites. The Business Delivery segment is directed to reach small businesses and home offices, while offering next business-day delivery for most office supply orders in highly populated areas.

The Quills segment, is a direct mail catalog and Internet business targeted to servicing the business product needs of small- and medium-sized businesses. The Quill division also operates the Medical Arts Press, a specialty Internet and catalog business offering products for medical professionals throughout the U.S.

The Staples’ Contract operation focuses on providing for the needs of medium-sized and large regional companies and large multi-regional companies. Through its sales force, Contract offers the stocking of certain proprietary items, customized pricing and payment arrangements, full service account management and usage reporting.

The North American retail stores are located in 47 states, the District of Columbia, 10 Canadian provinces and 2 Canadian territories.

With retail stores, catalog and Internet businesses operating under various names in 20 countries in Europe, Asia and South America, the International Operations segment offers a wide range of office supplies and services, computers, business machines and office furniture.

Staples currently has a presence in the retail International marketplace in the United Kingdom, Belgium, the Netherlands, Portugal, Germany, China, and India. With the economic explosion within China over the past several years, Staples operates a delivery business in Beijing, Shanghai, and Shenzhen in China, a retail business primarily in the Yangtze Delta Region of China and operates a total of 32 retail stores in China.

With the nation’s community, Staples has become a mainstay. With the Staples Foundation for Learning, started in 2002, the company supports youth groups and education, along with collaborating with other groups such as Earth Force, the Hispanic Heritage Foundation and the Initiative for a Competitive Inner City.

Furthermore, with its introduction in 2005, the company marketed the promotional item, the “Easy Button,” which is a novelty item that works as a stress reliever. Currently selling for $4.99 - $5.99, the first $1 million in proceeds from the sale goes to help the Boys & Girls Clubs of America, while in Canada, the proceeds benefit the Special Olympics.

The Company competes with Office Depot (ODP), OfficeMax (OMX), Wal-Mart (WMT), Costco (COST), Best Buy (BBY) and FedEx Office, formerly FedEx Kinko’s.

By BetterTrades