Is Staples doomed? 7 red flags
The shopping experience is lacking, with missing products and items that don't fit the mix.
7 Explanations on why Staples is doomed
2. The back of the store is wildly unproductive, but still being paid for each month. Staples should not only be exiting U.S. stores more aggressively, but repurposing them so that they generate consistent profitable sales. For example, why not convert the back of Staples stores (which currently hold chairs and large open pockets of air) to small-business workstations that could be rented daily/monthly, while also keeping people in the store spending at the UPS copy station?
3.Consistent MIA product displays discourages a sale and erodes confidence in the brand. Not having attention to detail is not what a retailer badly in search of sales needs.
4. Inventory dollars are being invested in merchandise such as Tide Pods, ice melt, and paper towels. In looking at the sales and traffic trends, these initiatives are not working, explaining the constraints of the office supply business model.
5. International is a low-margin business that is now operating at sustained losses. It must be completely exited ASAP, perhaps with funds being used to repurchase shares ($1.1 billion in total between 2012 and 2011).
7. Staples offers a woeful experience in Apple (AAPL) products, in terms of customer service and range of assortment, relative to Wal-Mart and Best Buy. I don't see this changing anytime soon, disappointing since all big-box retailers should play nice with a company continuing to reinvent the wheel. Imagine how Staples' electronics section (carrying declining in usage PCs) will fare when Google (GOOG) sets up shop inside Best Buy and Samsung continues to roll out its easy on the shops.
Brian Sozzi is CEO and chief equities strategist of Belus Capital Advisors.
Disclosure: Neither I, nor my firm, own shares in Staples or any of the companies mentioned. Belus Capital Advisors presently rates Best Buy at a "buy" rating.
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GOOD BARGAINS:WOW !$8 an hour.You can sure support a family on that.It`s OK or CEO`S
to make millions,get fired,get more millions and the workers to get crap.Americans better wake up.
Their Service still beats the Hell out of Best Buy.( Abucnh of ****s who do not Warranty anything) Bevis and Buthead Idiots..
I shopped at one in Clinton MD and the Manager went the extra mile to check the deal on the network drive I wanted. And I got it. He didn't just say, "sorry it is not on sale nothing I can do for you." So I left there happy as well.
I just purchased TWO MFC laser printers. One for the home and the other for small business. The lady in Annapolis was familiar with the product and was very informative and friendly. When I decided to buy another associate saw me with them on my cart and offered to put them on a flat cart they use for safer travel through the store and to my car for delivery.
I'm not sure what people are looking for. My experience with Staples has been fine.
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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