Staples has been well run. Especially its online business. They were installing Kiva Systems' bots in their distribution centers before Amazon (which now owns Kiva), and they've consistently squeezed more margin than others from a category that deals 100% in commodities.
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
#32In 18 months we've gone from 3 major national office supply players to 1. What is driving this? Amazon? Are the old office supply catalogs like Quill still around?
Money is cheap these days. When money is cheap, mergers are popular. Better to borrow and acquire now than compete later (I suppose).
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#33So we now effectively have an office supply monopoly? Ugh.
> So we now effectively have an office supply monopoly?
We have a retail office supply specialty chain physical store monoculture, but actual retail sales of office supplies also take place at non-specialty physical stores, at non-chain physical stores, and, most significantly, online (both from specialized and general retailers), and for most transactions customers easily substitute among those groups. So a single-entity dominating the brick-and-mortar chain subcategory is hardly a "monopoly".
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#34Staples 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.
Have you ever been there during "back to school" season? Its a jam packed free for all.
They probably have a lot of seasonal business when all the grade school semesters start.
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#35These businesses are most certainly NOT "on their way out". Office supplies is one of the largest categories in ecommerce. Staples and Office Depot are each doing billions in annual sales online. The idea that Amazon has already won in this category is simply not true (yet, but still). Staples did ~$10b in online sales last year and Office Depot did ~$6b. Online only. Staples sells more online in pure dollars than Ap…
Realistically the only way they can go is down. People just aren't even going to buying more of what they sell. The threat isn't Amazon, it's Apple. People are going to continue to use devices more and pens less right up until no one uses pens any more.
Also, bear in mind that you're quoting an article from 2013, and Staples stock fell by about 25% in 2014. They've picked up a little since then, but they're not going to get back to where they were. Their market is slowing disappearing.
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#36So we now effectively have an office supply monopoly? Ugh.
As other's have pointed out in this discussion, Amazon and Walmart's Sam's Club are probably more than enough competition to keep prices in check in the office supply market.
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#37These businesses are most certainly NOT "on their way out". Office supplies is one of the largest categories in ecommerce. Staples and Office Depot are each doing billions in annual sales online. The idea that Amazon has already won in this category is simply not true (yet, but still). Staples did ~$10b in online sales last year and Office Depot did ~$6b. Online only. Staples sells more online in pure dollars than Ap…
Realistically the only way they can go is down. People just aren't even going to buying more of what they sell. The threat isn't Amazon, it's Apple. People are going to continue to use devices more and pens less right up until no one uses pens any more. Also, bear in mind that you're quoting an article from 2013, and Staples stock fell by about 25% in 2014. They've picked up a little since then, but they're not going…
>People are going to continue to use devices more and pens less right up until no one uses pens any more.
And what prevents Staples from adjusting their product offerings to lean more towards "devices", and less towards "pens"?
Amazon used to sell only books....
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#38Earlier quoted context omitted.
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-...
I honestly had no idea. I would have figured new egg or Ann Taylor (based on how much my wife shops there on-line).
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#39Staples 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.
>I have no idea how they keep the lights on.
Back-to-school season, teachers/schools and corporate accounts.
Re: Staples Agrees to Buy Office Depot for About $6.3 Billion
#40These businesses are most certainly NOT "on their way out". Office supplies is one of the largest categories in ecommerce. Staples and Office Depot are each doing billions in annual sales online. The idea that Amazon has already won in this category is simply not true (yet, but still). Staples did ~$10b in online sales last year and Office Depot did ~$6b. Online only. Staples sells more online in pure dollars than Ap…
Realistically the only way they can go is down. People just aren't even going to buying more of what they sell. The threat isn't Amazon, it's Apple. People are going to continue to use devices more and pens less right up until no one uses pens any more. Also, bear in mind that you're quoting an article from 2013, and Staples stock fell by about 25% in 2014. They've picked up a little since then, but they're not going…
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