I read your posts and you do not explain how they are a category killer. In fact, with their moves into candy, water, paper towels, etc, they have dropped focus on their key categories.
The fact is they are in a difficult position because of all the stores they would love to get rid of and the fact that their e-commerce cannot support their growth. They are not going out of business but they have real problems which are not being addressed by management or the consultants that they hire.
By the way, have you seen their marketing? Amateurish, at best.
By time the Divy comes around end quarter, funds loaded up low, and then reap the reward, for the next 1/4er, Holiday and back to school sales!!
I encourage anyone in an area with their new store,design to visit. You are spot on with what their target should be. Business solutions...... Extension of small businesses,
Focus on technology.....roomy , professional..... Does not look like the same old store. I believe there are several of these stores in test , mostly in the east. When you walk in, you feel like you are in a business , not a supply store. The consumables are off to the side, in perpendicular aisles, which lends to a neat organized appearance. In the center as you walk in is a help,desk, with specials, direct online connections and facilities to order online, with next day, prepaid delivery. These guys are not sitting still. I actually bought a few shares before earnings, based on the store, the staffing and attitude of the store personnel.
How can the management think they are a category killer when Target, Walmart and even CVS and Walgreens have sharper prices on stationary products. Best Buy kills them in computers and electronics. The Management is sitting on 25,000 sq ft stores with huge rents and low volume. Usually the sign of amateurs and "yes-men" in key positions. This company must re-invent itself or fold.
PLWY looks ready to break pass the .80 threshold after news of latest acquisitionspreads like wildfire. Management upbeat about newly acquired asset
Ron does not have the stomach to buy ODP. Buying CEXP was a difficult experience for Staples. the integration was a nightmare and keep in mind that CEXP did not have a retail component. Combining the retain and contract platforms would be a nightmare.
In my opinion Ron will not buy ODP.
I'm not sure having all the brick and mortar locations is the way to go, Staples has a pretty huge online presence, which I think is probably the way to go with office supplies at this point. In any case, where there is possible growth in stores is in the 3-D printing aspects of it, and I don't just mean selling the printers/supplies, which they are already dabbling in, but there is going to be huge growth in printing replacement parts on demand in the near future. I'd like to see Staples looking into that. Whoever cracks that field first is going to make a mint at it.