Staples could very well go to $15 with the economy tanking and after they integrate Corporate Express and realize what a mess they just bought. Then again, Staples continues to be the leader in the market and increasing sales is the way to offset rising costs. They can be only their own worst enemy at this point, Office Max and Office Depot are in such horrible shape they are not even a threat to Staples at this point.(except for the large low margin accounts bought with the big fat check) The shoppers will one-stop-shop at the Costco's and Wal-Mart's, but that will have a minimal impact on overall sales. It's the contract and international segments that will drive the business as all companies still need their pens and pencils and aren't going to send their office manager to the store with $4.50/gallon gas when they can have it delivered to them. The one thing that Staples will have to worry about it the resurgence of the independent dealers who can provide better service and competitive pricing, like they did long before the big-box chains were even invented. Just my worthless two cents, take it for what you wish.
If the oil price is settle down and the US dollar does not fall anymore,
SPLS is not going to $15.
Since most of the Staples mechantdises are made in China. As our money is falling, it will increase its cost.
Besides UPS raising rates and Staples has a lot of trucks; the shipping cost will be driven by the oil price.
Technology items helped Staples to increase their sales in the past few years.
However, in this year, the price of tech item is dropping. The decreasing profit margin is not favorable to Staples.
I have been in the business for 4 years.
My company is selling the printers, inks and toners.
I am not ignoring any of that.
What is your experience with office products?
I have been in the business for 20 years. I have seen lots of changes and I am sure that SPLS is not going to $15.
So what is your experience with this sector?
He is right. $15 is the target price
1. BJ's, Costco, Target and Walmart(Sam's) keep stealing market share
2. Office depot and Office Max have started the price war against Staples
Staples stopped the cashback program from many third party sites (mrrebates, jellyfish, fatwallet, mypoints...)
Staples stopped some recycling programs
Staples suspends share buyback program