That is exactly right - but no help in the short term. Staples may have little innovation motivation with the executive management team in position to exercise stock options with virtual profit guarantee as long as costs remain in line. Innovation requires risk taking and funding. Staples has done little to leverage their #2 on-line position. Innovation is not a new TV commercial.
Staples has placed a lot of emphasis on cost cutting, especially associated with personnel. Will it help Net Profit this Quarter? The answer seems to be yes, but not enough. It will show long term benefits, but with termination packages factored in, the savings will probably not make enough difference especially if quarterly sales are in the area analysts expect. - Thoughts?