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Staples Agrees to Buy Office Depot for About $6.3 Billion

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Re: Staples Agrees to Buy Office Depot for About $6.3 Billion

#11
post #4

This will be interesting to see. Yeah these office supply stores have competition from online retailers, but I would assume they make a good chunk of their revenue from corporate/education customers. Since that is their biggest revenue stream, I wonder how that aspect of the industry would be affected by the merger.

CDW [1] is still around and is much more targeted towards that audience.

[1] https://www.cdw.com/

Re: Staples Agrees to Buy Office Depot for About $6.3 Billion

#12
post #8

The weirdest thing to me is they JUST finished the merger between Office Depot and Office Max last year.

Until your comment I hadn't even realized that Office Max had been subsumed. I guess that goes to show how little I interact with those stores anymore.

Re: Staples Agrees to Buy Office Depot for About $6.3 Billion

#13
post #4

This will be interesting to see. Yeah these office supply stores have competition from online retailers, but I would assume they make a good chunk of their revenue from corporate/education customers. Since that is their biggest revenue stream, I wonder how that aspect of the industry would be affected by the merger.

Staples also makes a TON of money from their Printing Centers. I worked at one for a few months as I was finishing up my undergrad. The money they make in that department EASILY carries the rest of the store. Even though they've been in the computer selling business for a number of years, I'm willing to bet that they haven't made much money on it, whereas office supplies and printing are where the real money is.

Re: Staples Agrees to Buy Office Depot for About $6.3 Billion

#14
post #5
post #2

Staples Depot? I wish them luck. On the rare occasion I buy something online from one of their stores (probably something that generates a loss or wash for them) and pick it up, it feels like I'm their first customer of the day.

I have no idea how they keep the lights on. Whenever I go in, usually during peak business hours, it's unusual if there's even another customer in there. I'm usually just buying a pack of cheap pens or something, maybe once every 6 months. Many moons ago, it used to be an underappreciated place to buy cheap computer parts, but even SD cards are grossly overpriced these days.

Staples has a shockingly large (at least to me) online business. They're the second largest online retailer in the US (second only to Amazon):

http://www.fool.com/investing/general/2014/03/27/staples-is-...

Re: Staples Agrees to Buy Office Depot for About $6.3 Billion

#15
post #4

This will be interesting to see. Yeah these office supply stores have competition from online retailers, but I would assume they make a good chunk of their revenue from corporate/education customers. Since that is their biggest revenue stream, I wonder how that aspect of the industry would be affected by the merger.

There are plenty of competitors for the large customers. Few consumers have ever heard of them, though, because they only do large accounts.

Plus, Sam's Club has been on a major push over the past several years to attract small and medium business customers. They will be a serious competitor for Staples Depot Max in that segment.

Re: Staples Agrees to Buy Office Depot for About $6.3 Billion

#17
post #5
post #2

Staples Depot? I wish them luck. On the rare occasion I buy something online from one of their stores (probably something that generates a loss or wash for them) and pick it up, it feels like I'm their first customer of the day.

I have no idea how they keep the lights on. Whenever I go in, usually during peak business hours, it's unusual if there's even another customer in there. I'm usually just buying a pack of cheap pens or something, maybe once every 6 months. Many moons ago, it used to be an underappreciated place to buy cheap computer parts, but even SD cards are grossly overpriced these days.

Staples gives store credit for printer ink cartridges, even if you didn't buy them there. They also coupon heavily so walking in and buying something retail is like doing the same at Bed, Bath & Beyond.
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