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Staples, Inc. Message Board

  • mcd5fl mcd5fl Feb 3, 2009 11:36 PM Flag

    Is SPLS the next ODP? Thoughts?

    It seems safe to say that businesses are cutting back, and new businesses aren't exactly popping up all over the country.

    ODP looks like it is headed to zero.

    Now the real question is what is/can SPLS do to avoid the exact same fate?

    A similiar retail situation recently played out--Circuit City went under, yet Best Buy has actually moved higher over the last two months.

    So is SPLS going to follow ODP to the ground, or is it going to act like Best Buy....and go higher?

    Anyone with an objective opinion? Or anyone with some reasons why SPLS wouldn't have the same fate as ODP?

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    • I don't believe SPLS is going the way of ODP. Why? Because SPLS has a very strong cash position, unlike ODP who is broke as a joke right now. ODP buys way too much inventory to get a low price, but then can't move it to save their lives and has to put everything on clearance, losing TONS of profit constantly.

      OMX is heading the way of ODP right now, with very slim chance of turning around.

      SPLS is also starting now to cut back and streamline to save costs, so they don't do it AFTER they are already gonners, like ODP. Staples has constantly been much better operationally and with their investments. In tracking all 3 office stores performance, SPLS is by far the most consistant company to give a positive ROI.

    • The Staples I shop at always seems to be very busy and lately I find myself standing in a line to checkout more and more often. Staples has way better customer service over Office Max. I have argued with Office Max Customer Service Reps over the phone for dot com orders and in store trying to get a price adjustment. Staples just gives the adjustment without hassle. I just use Office Max to return ink cartridges and milk them so they go down faster. Sure I'll miss my ink rewards but I'll be more satisfied seeing them out of business for all their rude managers and CSR's working unemployed.

    • joelmama Mar 1, 2009 9:35 PM Flag

      More stores, US or internationally is not something to feel good about, not in this economy.

      OMX is in retail, b to b contaract, mid market and dot com, supplies, furniture, technology, print and document service, same as Staples.

      OMX is in as many countries as Staples if you consider their ownership of G&T and partnership with Lyreco, but without all the investment.

      You've told me nothing about OMX management. Until you do, I don't know how you can comment on it, good or bad.

    • I'm a shareholder simple as that. I know enough about Max's management. I also don't mistake - SPLS has twice as many stores. You're talking just about US stores. If you want to simply discuss US stores, you aren't understanding the culture of SPLS. You also don't understand retail is just a piece of the puzzle. Dotcom, corp. ex, China, and various other countries. BTW - you tell me - How many countries is Max located in? How about ODP? How many is SPLS in?
      Let us know after you research.

    • I did not realize the you are a PI

    • My objective opinion- none of these companies will survive in their current form, if the world economy doesn't turn around before the end of 2011. It doesn't matter what staples or the other two do. Their primary customers are businesses. Companies from huge to small are laying off workers, reducing budgets, and closing down resulting in reduced need for the supplies and services these companies offer. Individuals shopping retail are not buying from anyone. Revenues for all will continue to drop, reduced customer base and prospects will force them to compete harder for the business, which will continually drag profits down. This is macro economics 101.

      • 2 Replies to newton458
      • OfficeMax may be even worse, but Staples will be the last one standing if there's a shakeout. There's a reason Cramer screamed sell sell sell for OMX and ODP but buy buy buy for SPLS.

        >With unemployment forecast to approach 9% by fall, the nation might not need three giant office supply chains. Staples (SPLS: 16.38,+0.52, +3.27%) is easily the healthiest, and while Office Depot (ODP: 1.74,-0.07, -3.86%) is struggling, OfficeMax (OMX: 5.31,-0.03, -0.56%) looks worse. Sales are forecast to fall short of $8 billion this year, a loss of more than $1 billion since 2007. A market value of $395 million is dwarfed by debt of $1.8 billion. That doesn’t include pension obligations. According to a November 2008 estimate by Credit Suisse, Office Max’s total obligation of $1.1 billion was underfunded by $336 million.<

      • And if Office Depot goes out of business, Staples will be there to take their customers.
        That's macroeconomics 102.

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