Description
Staples Inc. is an American office retail company. It is primarily involved in the sale of office supplies and related products, via retail channels and business-to-business (B2B)-oriented delivery operations.
The company opened its first store in Brighton, Massachusetts on May 1, 1986. By 1996, it had reached the Fortune 500, and it later acquired the office supplies company Quill Corporation. In 2014, in the wake of increasing competition from e-commerce market, Staples began to close some of its locations. In 2015, Staples announced its intent to acquire Office Depot and OfficeMax. However, the purchase was blocked under antitrust grounds due to the consolidation that would result.
After the failed acquisition, Staples began to refocus its operations to downplay its brick-and-mortar outlets, and place more prominence on its B2B supply business. In 2017, after its sale to Sycamore Partners, the company was effectively split into three "independently managed and capitalized" entities sharing the Staples name, separating its U.S. retail operations, and Canadian retail operations, from the B2B business.
History
Staples was founded by Leo Kahn and Thomas G. Stemberg, who were former rivals in the New England retail supermarket industry.
The idea for Staples originated in 1985, while Stemberg was working on a proposal for a different business. He needed a ribbon for his printer, but was unable to obtain one because his local dealer was closed for the Independence Day holiday. A frustration with the reliance on small stores for critical supplies combined with Stemberg's background in the grocery business led to a vision for an office supply superstore.
The first store was opened in the Brighton neighborhood of Boston in 1986. Staples started with backing from private equity firms including Bain Capital; Bain co-founder Mitt Romney served on the company's board of directors for the next 15 years, helping shape their business model.
A Staples Business Depot located in a heritage building in Vancouver, British Columbia, in September 2011
In 1991, Staples founded its Canadian subsidiary, The Business Depot, and began opening stores under that name, though over a decade later, all stores were renamed as "Staples". The first store opened in Vaughan, Ontario, north of Toronto. The following year, Staples began expanding into Europe, and opened its first British store in Swansea.
During its tenth anniversary in 1996, Staples became a member of the Fortune 500 companies as sales surpassed $3 billion. On September 4, 1996, Staples and Office Depot announced plans to merge. The Federal Trade Commission decided that the merged company would unfairly increase office supply prices despite competition from OfficeMax, because OfficeMax did not have stores in many of the local markets that the merger would affect. Staples argued that chains such as Walmart and Circuit City represented significant competition, but this argument did little to sway the FTC. Following the denial of the merger by the FTC, a rivalry formed between the two companies.
Staples acquired the naming rights for the Staples Center in Los Angeles shortly before construction began in 1998. Staples also acquired Quill Corporation, an online and catalog retailer of office supplies, for about $685 million in cash and stock. Between 1999 and 2001, unsuccessful attempts to enter the telecommunications business were made as Staples created Staples Communications after the purchase of Canada-based company, Claricom, from an investment group. The company was later sold to Platinum Equities and renamed NextiraOne.
In 2002, Staples acquired Medical Arts Press, which became a subsidiary of Quill. By 2004, Staples expanded to Austria and Denmark and in 2007, Staples opened its first store in India.
In March 2005, Staples and Ahold announced a plan to include a Staples branded store-within-store section in all Stop & Shop Supermarkets and Giant Food stores throughout the Northeast. In August 2006, Ahold announced the addition of the Staples section to all Tops Friendly Markets locations as well.
In 2008, Staples acquired Dutch office supplies company Corporate Express, one of the largest office supply wholesalers in the world. Staples also launched 11 concept stores in the New England area featuring a large focus on small business and technology related services.
