Following the failed merger with Office Depot and rumors of a sale swirling around, Staples announced its “Staples 2020” plan, which focuses on promotional products, among other product categories.
Seeking Alpha reports:
Staples is pivoting away from solely selling consumer goods towards selling office services. The business opportunity is so great that another competitor, Xerox, has also found itself pivoting towards this business opportunity. To my understanding, there are at least 3 large public companies now attempting to sell services to office customers rather than only selling office products. Not to mention smaller and independent businesses. This implies a highly fragmented and competitive market. Nevertheless, in spite of potential execution challenges, I believe that Staples is still undervalued relative to its full potential.
Beginning in the fourth quarter of fiscal 2016, Staples detailed its two operating segments: North American delivery and North American retail.
The goal of its Staples 2020 plan also includes growing the mid-market in North America, maintaining profitability in North American stores, cutting back company-wide costs and focusing on North America overall.
During its last fiscal quarter, the company also set its sights on other areas, which it called “Pro Categories.” In addition to promotional products, the company is focusing on facilities, break room items, furniture and technology solutions.
