Staples operates in the office supply industry, offering a wide range of products and services to both business customers and consumers. With a revenue of $25 billion, Staples is larger than its competitors, Office Depot (ODP) and OfficeMax (OMX), combined. The company has three main segments: North America Retail, North America Delivery, and International. Staples’ scale efficiencies in purchasing and its focus on private label products contribute to its success in the market.
Staples’ retail segment primarily serves consumers, home offices, and small businesses through its 1,914 stores. Despite a flat store count in 2012, Staples has consistently outperformed its competitors in terms of sales growth, margins, and return on capital. The company’s management has demonstrated discipline in reducing store sizes and holding the store count flat. Staples also has superior locations compared to its competitors.
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