Staples (United States)

Staples (United States) is a major American retailer specializing in office supplies, technology, furniture, and business services. Founded in 1986, it grew rapidly to become a dominant force in the office superstore segment, competing directly with rivals like Office Depot and OfficeMax. Headquartered in Framingham, Massachusetts, the company operates a vast network of retail stores and a significant e-commerce platform, serving both consumer and business customers. Following a 2017 acquisition by the private equity firm Sycamore Partners, its retail operations were significantly streamlined, focusing more on its commercial delivery business.

History

The company was founded in 1986 by former Supermarkets General executive Tom Stemberg and entrepreneur Leo Kahn, opening its first store in Brighton, Massachusetts. Stemberg identified a market opportunity for a high-volume, low-price retailer targeting small businesses, a concept that created the modern office superstore industry. With backing from venture capital firms like Bain Capital, Staples embarked on aggressive national expansion throughout the late 1980s and 1990s, going public on the NASDAQ in 1989. Key growth strategies included acquiring regional chains like Office World and expanding into markets across the United States, often engaging in intense competition with Office Depot. In 2017, after a blocked merger attempt with Office Depot by the Federal Trade Commission, Staples was acquired and taken private by Sycamore Partners, which subsequently closed hundreds of retail locations to refocus the company.

Operations

Staples operates through a multi-channel model encompassing retail stores, a robust e-commerce website, and a dedicated business-to-business sales division known as Staples Advantage. The retail footprint, once numbering over a thousand locations across all fifty states, was drastically reduced post-2017, with remaining stores often co-located with UPS Store outlets for shipping services. Its commercial division provides contract-based supply solutions, including office products, facilities supplies, and promotional items, to corporate clients, educational institutions like the Los Angeles Unified School District, and government agencies. The company also runs several fulfillment centers across the country to support its delivery operations, ensuring next-day service to a majority of the United States.

Products and services

The core offering includes a wide assortment of traditional office supplies such as paper, writing instruments, and filing products from brands like Bic and Hammermill. A significant portion of sales comes from technology products, including computers from HP, Dell, and Apple, printers, and related accessories. The company also sells office furniture, from chairs to desks, and provides business services through partnerships and in-store kiosks, such as printing via FedEx Office, shipping through UPS, and tech repair services. For its corporate clients, Staples offers managed procurement programs, customized catalogs, and dedicated account management through its Staples Advantage platform.

Corporate affairs

Headquartered in Framingham, Massachusetts, Staples is a privately held subsidiary of Sycamore Partners. The company has been involved in numerous corporate initiatives, including a long-running recycling program for technology and ink cartridges. It was a founding member of the Forest Stewardship Council in the United States, promoting sustainable paper sourcing. Historically, its corporate governance included a board of directors featuring notable figures like Mitt Romney, a former executive at Bain Capital. The company has also engaged in various philanthropic efforts, often focused on education and supporting communities through donations to organizations like the Boys & Girls Clubs of America.

Controversies and legal issues

Staples has faced several significant legal and regulatory challenges. Most notably, in 2016, the Federal Trade Commission successfully sued to block its proposed merger with rival Office Depot, arguing it would substantially lessen competition in the market for office supplies sold to large business customers. The company has also been subject to lawsuits and investigations regarding false advertising, such as claims about discounted prices, and has settled cases involving allegations of overcharging government agencies. Additionally, Staples has faced criticism and legal scrutiny from environmental groups over the sourcing of its paper products and has been involved in labor disputes concerning employee classification and overtime pay at various distribution centers.