The strategies driving Staples towards more growth.
Zachs reported that the company had shown a growth of 26.9 percent in the last six months impressing investors and “out performing’ earlier predictions from Zachs. The reasons for the growth are due to three strategies from Staples.
After the failed merger with Office Depot , Staples set out to improve its productivity and performance in North America and did so by shutting stores that were under performing but expanding other services to “strengthen its customer base” as well as gaining new customers and increasing services and products. Recently Staples bought Acquired Capital Office Products in an attempt to “reinforce its position in mid market contracts”.
The Office retailer has also set a goal to save $300 million (€275 million) a year by 2018 and is “focusing on lowering indirect procurement costs” while also shutting down stores in North America having shut 13 down in the fourth quarter 2016 as well as 48 stores in the “fiscal 2016” and is planning another 70 in fiscal 2017.
Staples plans to improve sales through hard tactics to increase potential customers and then convert them into buying customers which it will do by pushing “targeted advertising, ongoing sales training and customer orientated initiatives” as well as services for computers.
These strategies have helped the overall performance over the past six months despite demand for office products decreasing and whether it is sustainable in the long term depends on the office products sector.