STAPLES,

Inc. 1
2
 Introduction
• Staples was founded in 1986
by Thomas Stemberg
• It is currently the #1 office
retailer.
• Staples has annual sales of
11.6 Billion Dollars and
employs over 58,000 workers
worldwide in over 1494 stores
in the US, Canada, UK,
Germany.
• Approximate stock price Æ
$26.00 /share
3
 Products /
Services
• Office supplies
• Furniture
• Technology items (printers,
faxes, copiers, computer
components, customized PCs)
• Custom printing
• Business services (such as
printing, staffing, HR
management, payroll,
employee motivation,
communications – such as
broadband and dialup, web
presence, software training,
sales and marketing support)
4
 Sales per
Category
• Office Supplies; services and others – 42%

• Office Automation (Copiers; fax, …) – 30%

• Computers and associated products – 21%

• Office furniture (desks, chairs, ..) – 7%

STAPLES.com

5
 Multi-Channel
Capabilities
• Retail through brick and mortar
stores
• Mail-order via Catalogs
• In-store Kiosks offer customers a
chance to checkout a one central
location, pay for online and offline
purchases at one time, order
customized computers, and access
over 80,000 products most of which
are not available in brick and
mortar stores.
• Online through Staples.com,
Quill.com, and StaplesLinks.com
(e-procurement)
6
 StaplesLink.c
om
• Allows e-procurement and e-
commerce transactions to happen
almost seamlessly.
• In under 30 days Staples can
seamlessly integrate any e-
procurement system to
StaplesLink.com without time-
consuming manual processing or
custom re-engineering
• Currently, some 20,000
organizations use StaplesLink and
growth is expected to continue.
• Stapleslink offers: immediate
access to 80,000 products, the
ability to consolidate orders, track
online and offline orders, manage
users and usage, and generate
reports on spending. 7
 StaplesLink.com
Continued…
• Aberdeen Group vice president
and research director Kent
Allen, cites StaplesLink as one
of the leading sites in
collaborative commerce.
• According to the Aberdeen
Group, e-procurement
ventures have been hit or miss
(http://www.crmbuyer.com/perl/story/21002.html)

• StaplesLink has been a rare

exception, netting increases in
revenue, sales, and customer
retention.
8
9
 Competitors
• Office Depot
• OfficeMax
(Boise-Cascade purchased
OfficeMax Dec ‘03)

10
 Mergers and
Acquisitions
• Staples made an attempt at
horizontal integration by trying to
purchase Office Depot which was
blocked by the FTC.
• Staples acquired Quill, a mail-order
office products company, in 1998
• Acquired Medical Arts Press (2002)
which sold $168 million worth of
office supplies to doctors, dentists
and veterinarians.
• Guibert – acquired in OCT, 2002,
mail order supply company.

11
Staples Inc.
Financial Highlights
Sales Net Income
1992 $ 1,041,636 $ 18,318
1993 $ 1,308,634 $ 19,452 Sales
1994 $ 2,000,149 $ 39,940
1995 $ 3,068,061 $ 73,705 $14,000,000
1996 $ 3,967,665 $ 106,420 $12,000,000
1997 $ 4,493,589 $ 144,742 $10,000,000
1998 $ 5,732,145 $ 167,914 $8,000,000
1999 $ 7,123,189 $ 185,370
$6,000,000
2000 $ 8,936,809 $ 314,988
$4,000,000
2001 $ 10,673,671 $ 59,712
$2,000,000
2002 $ 10,744,373 $ 264,970
$-
2003 $ 11,596,075 $ 446,100
92
94
96
98
00
02
19
19
19
19
20
20
Net Income

$500,000
$400,000
$300,000
$200,000
$100,000
$-
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

12
Question

13