Staples, a big store that sells office stuff, said in 2014 that it would shut down 140 of its stores in the United States and Canada. But why? Well, they started selling things online and changed the things they sold in their stores. Another company called Grand & Toy, which is known for selling office stuff in Canada, also closed its real stores this year. They wanted to focus more on selling things both in stores and online.
Why is Staples in Trouble?
Staples’ problems are part of a bigger issue. Big stores like Staples are having a hard time because there are lots of online stores that sell things for less money. People like to buy office stuff online, especially if they are buying it for their business. Did you know that 88% of people who buy stuff for their businesses prefer to do it online? That’s a lot!
What is Staples and Its History?
Staples is a big chain of stores where people can buy office supplies. They started in 1986 in Boston, and then they opened many stores in the U.S. and Canada. They also have a company that delivers office supplies. They have catalogs and an online store too. They even have stores in Europe, with different names in different countries.
How Staples Changed the Office Supply Business
Before Staples, companies that make office supplies sold their stuff to big wholesalers. These wholesalers then sold the stuff to stores that sell office supplies. There were a lot of middlemen, which made things more expensive. Staples changed that by selling office supplies directly to customers, skipping all those middlemen.
Staples Today
As of July 27, 2022, there are still over 1,000 Staples stores in the United States, with the most in California. But Staples made a big decision in 2021. They sold off their stores in many European countries, which means they are not in Europe as much anymore.
Why Staples is Closing Stores in the U.S.?
Staples has been closing stores in the United States for a while now, starting in 2015. They are still doing it because they face tough competition from online stores. In 2020, they said they would close around 140 stores in the U.S. The competition online has only gotten stronger in 2022. So, Staples is now focusing more on selling things to other businesses instead of running lots of stores.
What Stores Have Closed Recently?
In 2022, Staples closed some of its stores in places like Kansas, Massachusetts, and Texas. They are expected to keep closing stores in the same way they have been doing since 2015.
So, while Staples is not going away completely, it’s changing to deal with the new way people like to shop, especially when it comes to office supplies.
How is Staples Doing in 2023?
In 2023, Staples is facing some big changes. Let’s find out how they’re doing:
Pandemic’s Impact on Home Offices
Due to the pandemic, lots of people turned parts of their homes into offices. They needed things like office supplies to work from home.
A Potential Boost for Office Supply Stores?
You might think this would be good news for stores that sell office supplies like Staples. After all, people needed stuff for their home offices. Big companies usually bought office stuff from special office supply stores, like Staples and Office Depot.
But Things Aren’t Going Well
Surprisingly, even before the pandemic, not many big companies were buying from stores like Staples. Their number of stores and sales was going down. Then the pandemic came and made things even tougher.
More People Shopping Online
During the pandemic, more people started working from home. They also started buying office supplies from online stores and general retailers. These places were more convenient and often cheaper.
Big Changes for Staples and Office Depot
Staples and Office Depot (also known as ODP Corp.) are facing some big challenges. Private equity group Sycamore has been trying to take over Office Depot, which could make Staples one of the only big players left.
Office Depot Decides to Stay Independent
This summer, Office Depot decided not to merge with anyone and stay on its own. Staples had been trying to buy them since 2021, but they said no. Office Depot also decided not to split its business into two separate companies, even though they had been thinking about it.
A Long History of Changes
Staples and Office Depot have a long history. In 2016, the government stopped them from merging because it would have created too much power in the office supply market. Back in 2015, Staples had tried to buy Office Depot for a big amount of money.
Who’s on Top?
Right now, Staples has the biggest piece of the office supply market, with more than 47%. Office Depot is in second place with 36%. They are the last big stores left in this market.
What’s Next?
The future for office supply stores might depend on how well they do during the holiday season. If it doesn’t go well, there could be more mergers (where two companies join together) or even some stores might go out of business.
Expect More Changes
Next year, we might see more stores trying to figure out how to make money or keep going, maybe by joining up with bigger companies. It’s a challenging time for stores, and we might see some winners and losers in the retail world.
So, Staples is still around, but it’s dealing with some big challenges and changes in how people shop for office supplies.
In Conclusion: How Staples is Doing Today
Staples is still doing well when you look at its money situation. It’s the top office supply company in the country when you count how many stores it has and how much it sells.
A Changing Way of Doing Business
But things are changing for Staples. They’re not so focused on having lots of physical stores anymore. Instead, they’re putting more energy into selling stuff to other businesses. Also, there’s a lot of competition from online stores.
Europe is Different
In Europe, most of the Staples stores have closed down for good. But in the United States, they’re not planning to close all of their stores. They’ll only shut down some of them.
So, Staples is still here, and it’s still making money, but it’s changing the way it does business, especially with more focus on selling to other businesses.