NEWS > BUSINESS > STAPLES DOWNSIZING STAPLE DEPARTMENT

STAPLES DOWNSIZING STAPLE DEPARTMENT

July 7 2008

Framingham, MA – Responding to the current economic clime, as well as repeated customer complaints, Staples, Inc. has released a statement concerning the downsizing of the size the staple and staple related departments in all of its stores in the U.S. and Canada.

In part, the statement read “It remains a part of our mandate to offer our customers not only the best selection and the best value for all of their office needs. In keeping with that, our paper binding departments will be decreased in size in order to make room for new and exciting office products. This will also allow us to refine our product line in that particular department.”

The company also detailed the downsizing; sections will be reduced from 6 feet to four; more efficient shelving will be used; older lines will be marked down and discontinued. The company hopes to recoup some of the revenues lost from their recent store closings as well as making an effort head off potential consumer apathy in the face of the current economic situation throughout North America. It is not sure if similar moves will be made in other international stores, where staplers have varying levels of penetration.

“It’s an interesting move, of course one we were already seeing,” said Buchwald-Hampton analyst Carrie Dougal. “You wouldn’t believe the number of emails I receive on a daily basis commenting on the reduction of the sections. It remains to be seen as to whether or not this is a good move for the company, but it at least shows that they are being proactive in trying to stay vital in this diminishing economy. I’m fairly positive about this move. What they will do with all that extra space though remains to be seen.”
ACCO brands, the parent company of Swingline, were slightly less optimistic. The world leader in staplers and hole punches depends heavily on their relationship with major retailers such as Staples. A spokesperson for the company: “We were not informed in advance of this. Our representatives had been reporting back to us the change in size and we inquired with Staples but received no response. It is a major concern for us of course, but we will endeavour to work with them, as well as all our other retail partners, through these tough economic times.”

Staples had no comment on which brands or lines would be reduced, nor what percentage of space their in-house brand would be taking on store shelves, an obvious concern for all third parties.

We interviewed a manager at a local Staples location, who confirmed that they had received orders to reduce the size of those departments. “I don’t think that’s what’s going on to be honest. Our mark-up on staplers is pretty low, at least compared to other binding methods like paper clips and file folders. Recently we have been receiving heavier than usual shipments of Staples brand file folders. My guess is that’s the direction we are going. There may be a time when you go into a Staples store and won’t be able to buy staples.”
The company also announced the slashing of 150 jobs throughout North America and the closing of two stores.

William Ashford, Business Correspondent

NEWS > BUSINESS > STAPLES DOWNSIZING STAPLE DEPARTMENT

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