Key Takeaways

• Staples received a $9 million debt funding from an undisclosed investor in December 2019.
• According to Forbes, the annual revenue of staples was $8.7 billion in 2021.
• In 2019, Staples introduced a "comprehensive transformation of its digital and delivery brand and approach to engaging with business customers."
• Staples closed over 100 stores between 2018 and 2021 as a result of declining sales.

Introduction

1. Company Analysis and Digital Transformation Strategy

Funding History

• According to PitchBook, Staples have had 13 funding rounds.
• In January 1999, General Atlantic and Summit Partners invested an undisclosed amount in Staples.
• In November 1999, Staples raised a Post-IPO Equity funding from General Atlantic, and other investors including Summit Partners, Highland Capital Partners, Greylock, and Essex Investment Management.
• Sycamore Partners acquired Staples for around $6.9 billion in 2017.
• Staples received a $9 million debt funding from an undisclosed investor in December 2019.
• Other investors that have participated in providing funding for Staples include Vedanta Capital, Essling Capital, InterWest Partners, HarbourVest Partners.

Annual Revenue

• Since Staples became a privately-owned company after its acquisition by Sycamore Partners in 2017, it no longer publishes its financial information on its website.
• According to Forbes, the annual revenue of staples was $8.7 billion in 2021.

Products and Services

• Staples' products include business and invitations cards, signs, banners and posters, stationery, custom stamps, photo gifts, and sales and marketing materials.
• The company's services include breakroom solutions, facility solutions, furniture solutions, print solutions, tech solutions, and marketing solutions.

Corporate Value and Mission

• Staples does not mention its corporate value and mission on its website. According to Comparably, ZipRecruiter, and Mission Statement, Staples' mission statement is "By expanding our product assortment and making shopping and saving easier than ever, we’re helping customers make more happen every day. And it’s our mission to make more happen for associates, local communities, and even the planet — through programs, policies, and the values we live by."
• Staples' core values are diversity and inclusion, environment, community, and ethics.

Strategic Initiatives Related To Digital Technology

• In 2016, Staples created the role of Chief Technology Officer to streamline their e-commerce and global technology solutions.
• Faisal Masud was appointed as the company's first Chief Technology Officer from his previous role as Executive Vice President of Global E-Commerce, due to his work in driving the development of Staples' digital channels, leading e-commerce operations, and the continuous development of the platforms, sites, and mobile assets of the company.
• In 2019, Staples introduced a "comprehensive transformation of its digital and delivery brand and approach to engaging with business customers."
• To support its new brand, Staples developed a five new product brands, including NXT Technologies™, a technology solution that connects teams and keeps them productive from wherever they work.
• Staples also planned to introduce a "new, interactive digital experience" that would enable customers to easily create a workplace that offers every employee a fulfilling and collaborative work life.
• The digital experience would "connect customers to products and solutions in a variety of ways, from intelligent content and peer recommendations, to intuitive shopping and buying tools."
• After their digital and delivery brand transformation, Staples planned to launch exciting, new features for their retail business.
• In 2021, Staples US Retail launched new products designed to enable modern-day hybrid workers to work from anywhere, as it continues its evolution to Staples Connect, "the working and learning store."

• The new, innovative products include solutions for remote working, home offices, small businesses, and side hustlers.

Quotes Related To Digital Strategy

• “Our customers have a passion for making their workplace the best it can be,” said Sandy Douglas, Staples’ Chief Executive Officer. “At Staples, we share that passion. Worklife fulfillment is about helping businesses of all sizes as they create the most dynamic and productive work environments for their teams.”
• “Since many people plan to work in a remote or hybrid environment moving forward, Staples Connect sought out the latest products to keep our customers productive, connected and engaged, no matter their location,” said Marshall Warkentin, Chief Marketing and Merchandising Officer, Staples US Retail.
• “Aligning our e-commerce and global technology organizations under one leader will speed execution so we can more rapidly bring digital solutions to market, and drive even greater innovation within the business, as we continue to enhance our B2B customer experience,” said Shira Goodman, Staples’ Chief Executive Officer and President.

Existing Marketing Tech Stack

• According to Slintel, Staples uses 1137 technologies across 24 categories.
• BuiltWith provides the current, existing marketing tech stack. These include Microdata for Google Shopping, Powerfront for e-commerce; BloomReach, Marketo, OwnerIQ, Omniture SiteCatalyst, BlueCore, and Adobe Marketing Cloud for marketing automation; and Atlassian Cloud, My Salesforce, and Google Search Appliance for content management system (CMS).

 

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2. Corporate Challenges

Decline of the Office Supply Market

• According to IBISWorld, the office supply sector is forecasted to experience a 2% annual decline until 2026. The market has suffered continuous decline in revenue since 2005.
• Euromonitor data also shows that the market experienced a 38% contraction between 2016 and 2021.
• Total annual visits to Staples dropped by the millions in 2019.
• This challenge is negatively impacting Staples as it has closed over 100 stores between 2018 and 2021 as a result of declining sales.
• The challenge has also impacted the business strategy of Staples as it tries to rebrand itself and shift its focus from products to business services.
• Staples has been very aggressive in shifting its "business away from paper, ink, toner, pencils, pens, paper – everything that’s trending in a negative direction."

Increasing Competition

• Staples' main competitors in the office supplies market are Office Depot and OfficeMax. The company is also experiencing increasing competition from Amazon, Walmart, other online players, and even supermarkets.
• Amazon and Walmart "were able to claim price leadership—which became critical in the recessionary economy", as the strategic position of Staples became eroded.
• Staples faces more threat from Amazon due to its "growth in the business-to-business sector."
• Staples faces over 15,000 online competitors. Competitors can be leaner and more cost-effective, since getting into the office supplies business is not expensive.
• This challenge is negatively impacting Staples as it has "large infrastructure and overhead costs that online competitors" do not have.

Research Strategy