considering they are in the first quarter of a consolidation effort . I have to agree with some of the previous posts , though . SPLS needs to work on marketing , big time .
First off, I want to commend you on writing a well-written message (some of the people who post on these message boards write so poorly that I have to give them the benefit of the doubt by assuming English is their second or third language). Anyway, regarding the point of your message, yes, I thought Staples should have bought Office Max before Office Depot ever put in a bid for the company. Now that they are merged, Staples should either try to buy the company now, or try to continue to gain profits, and grow a cash pile. Then wait until the next next recession (the last two have been pretty deep), at which point, they could put in a bid for ODP at a fraction of its high before the recession.
However, Barnes and Noble did not take that route with Borders. They let Borders disappear, and they seem to be taking the same route with Books-A-Million. Since Staples is cutting its number of stores, maybe adding more brick-and-mortar locations by buying all the ODPs would be the opposite direction of where they want to go.
staples needs to buy office depot which is cheap in price relative to staples. There would still be competition via amazon, walmart, etc., but Staples would then thrive as the only brick and mortar office supplier. Given the competition from amazon and walmart, etc., there is no need for two (2) brick and mortar office retailers.
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Kimwang56- I am not an employee but rather someone who has followed the stock for some time. I will back up my point by asking you to follow the trend line since 2007 and you will see that the stock has steadily declined. They have eroded all potential shareholder value by mismanaging this deal, particularly through their arrogance in Europe and Australia. They turned profitable companies (particularly Australia) into loss making ones by insisting the staples way is the only way.
I agree that they have higher online volume. However, corporates favor ODP over SPLS. Small business goes for the cheapest price, AMZN, SPLS, ODP or WMT. Now the numbers are out for last quarter: Same story, different day.
Sentiment: Strong Sell
splskoolaid, it's obvious you are a staples employee and probably a staples advantage employee. The CEXP acquisition has nothing to do with the issues you mention although it was a bad move. The acquisition only confirmed to CEXP employees how poorly managed and out of touch Staples is in the marketplace. I
I say this every quarter. It is time for a leadership change. New marketing trying to make Office supplies sexy and hip is not going to change the fact that this company is tired and poorly run. RS has continued to sing the same story about changing the model by adding new SKU's but the reality is this company killed itself years ago with the CEXP acquisition. They lost all of their momentum and have never recovered. Their management is poor and they are trying to stick with the same tired messages internally. They need to sweep the entire leadership team out over the next few years and bring in new leadership with ideas that will work. Management by intimidation is not a strategy. It is very clear to all that know the inner workings of this company that they are now in the death spiral just like ODP was a few years ago. how many more years will they continue to make earnings by cost cutting and taking charges to cover severance costs?
It certainly wasn't one of my better moments. Bought 1/16 options as this is slow drying paint. i do feel it is overdone but the market rules.
It is not a $15 stock. It is an $11.47 stock. Their core businesses of office supplies and technology are not performing. They cannot have meaningful growth selling water and cleaning supplies. Their marketing is terrible- consumers don't know what Staples is promoting. I reiterate- when you close stores, you should be driving customers to those stores that are still open. They aren't doing this.
BTW, they are now an $11.44 stock.
I wouldn't bet on that. On the other hand, it wasn't a bad report, and the dividend isn't in trouble. I'd rate it a hold like everybody else, I don't plan to accumulate any more right now, but I am not looking to sell any asset that generates 4-5% income a year. I expect it to stay in the $11 range for another three months anyway.
Increasing store traffic by adding janitorial supplies? Really. Hardly a reason why a consumer will decide to travel to a Staples retail store. There is no help whatsoever in many stores. It appears they have no idea how to deal with a declining customer retail base.
Strong cash flow. Better than most make it to be. Closing stores is actually normal business practice. Always surprising that companies like to call it 'unusual' or 'extraordinary'. 140 stores is not 30% of stores. This is a $15 stock with strong cash flow and corresponding dividend. If this were a tech company I'd be worried. Fashion retail, worried. Office supplies, not so worried.
Comp sales fall 5%- worse than it looks. When you close stores, existing stores should pick up some of their business. Profits down. Their strategy is working?