Have you checked the market in the past 7-8 mos?? There are a lot of stocks that have tanked for no reason. As far as inconsistent service, they are bringing in accts left and right for the sole reason that they can service them. These other outfits do not have all the capabilities contract size companies are looking for. Not by a long shot!
Do you really believe that the only reason this stock tanked is because they own retail stores? Stores are not their future, e-commerce and contract sales are. The market wants revenue and earnings growth. The fear is they won't deliver.
The problem with this whole sector is the days of stealing business from weak distributors is about over. Office Depot and Staples trampled poorly run ma and pa office suppliers and retailers and grew rapidly. In order to keep up their growth they now have to grow at the expense of well run independents.
Instead of steamrolling these companies, they are losing market share to them. SPLS can not compete on anything except price with these smaller operators. Office supplies are a fully deductable expense to business. Would you deal with a bad supplier to save 5%? Most well run businesses are choosing the best service/price supplier.
Independent office suppliers are growing faster than ever. They have huge buying power through coops they have formed. In fact an organization of independent dealers called BPGI is the largest buyer of office products in the world.
SPLS will need to get a lot better in the customer service area to compete. With their size and a full employment economy this will be tough. In order to grow they will have to work on slimmer margins. We've already seen this fact destroy OFIS, it's only a matter of time with SPLS and ODP.