Staples Inc.

Staples Inc.
	File:Staples logo.svg Logo used since 2019
Company type	Private
Industry	Retail (office supplies)
Founded	May 1, 1986; 40 years ago in Brighton, Massachusetts, U.S.
Founder	Leo Kahn, Thomas G. Stemberg
Headquarters	Framingham, Massachusetts, United States
Area served	North America, formerly Europe
Key people	Sandy Douglas (CEO)
Products	Office supplies, business products, services
Owner	Sycamore Partners
Website	www.staples.com

Staples Inc. is a U.S.-based retailer specializing in office supplies, with its main headquarters located in Framingham, Massachusetts.

The company was established by Leo Kahn and Thomas G. Stemberg, opening its inaugural store in Brighton, Massachusetts on May 1, 1986. By 1996, Staples had secured a position on the Fortune 500 list and subsequently acquired the office supply firm Quill Corporation. Confronted with increasing competition from online retailers, Staples began shuttering some stores in 2014. The following year, it sought to merge with Office Depot and OfficeMax, but regulatory authorities blocked the transaction due to antitrust concerns.

Afterward, Staples redirected its strategy away from physical storefronts, concentrating more heavily on business-to-business (B2B) offerings. Following its purchase by Sycamore Partners in 2017, the company was reorganized into three separately managed divisions operating under the Staples brand: retail operations in the U.S., retail operations in Canada, and the B2B segment.

History

Staples was launched by Leo Kahn and Thomas G. Stemberg, who had previously competed in New England’s supermarket sector, alongside Myra Hart. The idea took shape in 1985 when Stemberg, frustrated by the unavailability of office supplies during a holiday, conceived a large-scale office supply superstore informed by his experience in grocery retail.

The first store opened its doors in Boston’s Brighton neighborhood in 1986. Early financial support came from private equity firms such as Bain Capital; co-founder Mitt Romney served on the board for 15 years, playing a significant role in shaping the company’s business strategy.

In 1991, Staples expanded into Canada by launching The Business Depot, which was later renamed Staples, opening its first outlet in Vaughan, Ontario. Its European expansion began in 1993 with a store opening in Swansea, UK.

In 1996, Staples and Office Depot announced intentions to merge; however, the Federal Trade Commission intervened to block the merger over concerns about diminished competition and potential price hikes. This regulatory decision intensified competition between the two corporations.

Staples secured naming rights for the Staples Center arena in Los Angeles prior to its 1998 debut and acquired Quill Corporation—an online and catalog-based office supply retailer—for roughly $685 million. Between 1999 and 2001, Staples attempted to enter the telecommunications market via Staples Communications but eventually divested this unit, which became NextiraOne.

In 2002, Staples purchased Medical Arts Press and merged it into Quill. Subsequent strategic alliances included a 2005 partnership with Ahold to launch branded store-within-store sections at Stop & Shop and Giant Food supermarkets throughout the Northeast, later extending to Tops Friendly Markets in 2006.

A major global expansion occurred in 2008 when Staples acquired Corporate Express, a leading Dutch office supplies company, for $2.65 billion—significantly boosting its industry presence and competitive positioning.

Attempted merger with Office Depot; sale of UK division

On March 6, 2014, Staples declared plans to close as many as 225 stores across North America by the end of 2015 to achieve annual savings of $500 million and shift focus toward online sales.

On February 4, 2015, Staples announced its intention to purchase Office Depot, which had recently merged with OfficeMax, aiming to deliver greater value to customers and strengthen competitive standing. CEO Ron Sargent forecasted cost synergies exceeding $1 billion within three years. Nevertheless, antitrust authorities scrutinized the proposed acquisition for potential monopolistic effects. In December of that year, the FTC filed suit to prevent the merger—a position maintained into January 2016.

By early 2016, Staples initiated significant workforce reductions at its headquarters as a precaution against regulatory denial. On May 10, 2016, a U.S. District Court granted a preliminary injunction favoring the FTC’s efforts to block the merger; consequently, Staples terminated the deal and paid a $250 million termination fee.

In November 2016, after the failed merger attempt, Staples divested its UK operations—comprising 106 stores—to Hilco Capital for a nominal amount to streamline its international portfolio. Hilco phased out the Staples brand within the UK market by rebranding locations as "Office Outlet" while retaining Staples’ signature color palette. By August 2018, Office Outlet had closed several outlets through a company voluntary arrangement and underwent a management buyout. In March 2019, Office Outlet entered administration amid tightening supplier credit conditions linked to economic difficulties.

In January 2021, Staples renewed efforts to acquire Office Depot; however, this proposal was rejected in June 2022.

In 2022, Staples broadened its service offerings by introducing same-day passport photo services at over 1,000 stores along with TSA PreCheck enrollment available at select locations.

Shift to B2B Focus and Acquisition by Sycamore Partners

Following the unsuccessful attempt to acquire Office Depot, Staples redirected its strategic focus toward enhancing its B2B delivery services and e-commerce platforms, positioning itself as a "solutions partner" for corporate clients. In May 2017, the company introduced the "It's Pro Time" campaign, signaling a reduced emphasis on its traditional retail outlets.

In 2017, private equity firm Sycamore Partners purchased Staples for $6.9 billion, contributing $1.6 billion in equity while financing the remainder with debt. Sycamore reorganized Staples into three separately managed divisions: Staples North American Delivery (B2B), Staples U.S. Retail, and Staples Canada.

On April 9, 2019, Sycamore completed a dividend recapitalization by refinancing $5.4 billion of debt, which generated a one-time dividend of $1 billion and allowed the firm to recoup approximately 80% of its equity stake within two years—much faster than typical private equity exit schedules. That same month, Staples introduced a refreshed logo designed to represent an unused staple and an office desk, alongside new in-house brands such as Tru Red, Coastwide Professional (facility supplies), NXT Technologies (tech accessories), Perk (break room essentials), and Union & Scale (furniture). The company also launched a catalog titled The Loop. CEO Sandy Douglas, who took the helm in 2018, redefined Staples as a "worklife fulfillment" enterprise dedicated to supporting flexible work environments for businesses of all sizes.

In May 2019, Mike Motz, CEO of Staples U.S. Retail, unveiled "Staples Connect," a novel store format featuring co-working areas called "Staples Studio" and an auditorium-style event space named "Spotlight." This concept was first introduced in Boston with plans for expansion. Moreover, through collaboration with iHeartMedia, six locations incorporated podcast recording studios staffed by professional engineers and offered discounted hosting services via Spreaker to assist business clients venturing into digital content production.

Advertising

For much of its history, Staples employed the slogan "Yeah, we've got that." in its U.S. marketing campaigns to emphasize its extensive product range. This tagline was replaced in 2003 by "That was easy," highlighting convenience. By 2005, advertisements prominently featured a large red push-button labeled "easy." In the United Kingdom, the slogan evolved from "You want it. We've got it" to "That was Easy."

The "Easy Button"

Initially conceived as a fictional prop in Staples’ commercials, the "Easy Button" rapidly became a tangible product due to popular demand. Starting in fall 2005, Staples released physical versions of the button in multiple languages—including English, French, Spanish, and German—available across the US, Canada, and Germany. By the close of 2006, sales had reached 1.5 million units. This campaign significantly enhanced brand visibility by transforming customers into active promoters.

The Staples Sno-Bot

Between 1995 and 2001, the Staples Sno-Bot appeared as a seasonal mascot in U.S. television and print advertisements. Portrayed as a robot snowman fixated on an inkjet printer, the Sno-Bot’s monotone catchphrase "Weeping. Weeping." briefly became an internet meme. This character was part of Staples' innovative holiday marketing efforts designed to increase customer engagement and reinforce brand awareness during the Christmas season.

Back-to-school

Staples' yearly back-to-school promotion was well-known for its unique advertising approach, including the use of the festive tune "It's the Most Wonderful Time of the Year" from 1995 through 2005. The commercial portrayed a cheerful father purchasing school supplies contrasted with his children’s reluctant expressions, creating a lasting and engaging brand impression.

In August 2004, Staples collaborated with Alice Cooper for a back-to-school advertisement. The spot featured a lighthearted dialogue centered around the song "School's Out for Summer," concluding with the phrase "That was easy" alongside the company logo designed to resemble a stapler, effectively reinforcing brand recognition and consumer memory.

Other advertising

By 2008, Staples broadened its marketing efforts by incorporating social networking sites such as Facebook, Twitter, and YouTube. The introduction of "Coach Tom" served to promote the "Gift it for Free" sweepstakes, which rewarded 10,000 participants with merchandise valued up to $5,000. This campaign represented Staples’ strategic pivot toward digital platforms to boost customer engagement and stimulate holiday season sales.

Acquisitions and divestitures

1992: Workplace stores, Lakeland, Florida
1994: National Office Products, Hackensack, New Jersey
1994: Spectrum Office Products, Rochester, New York
1994: MacIsaac Office Products, Canton, Massachusetts
1994: Philadelphia Stationers, Philadelphia
1995: Macauley's Business Resources, Canton, Michigan
1996: Staples Office Products, Texas
1998: Quill Corporation, the largest U.S. mail-order office supply company based in Lincolnshire, Illinois, offering a range of school and office supplies, furniture, technology items, and customized promotional products.
2002: Medical Arts Press, provider of healthcare front office and examination room supplies.
2004: UK-based retail chain Office World, owned by Globus Group.
2006: Chiswick, distributor specializing in industrial and retail packaging across the U.S. and Canada; now operating under Staples Industrial branding.
2007: Thrive Networks, supplier of IT support services to small and mid-sized enterprises.
2007: American Identity, global distributor of corporate branded merchandise; rebranded as Staples Promotional Products.
2008: Corporate Express, Dutch supplier of office products integrated into Staples Advantage following acquisition.
2010: Miami Systems, commercial printing provider headquartered in Cincinnati, Ohio.
2014: PNI Digital Media, Canadian software company powering in-store photo printing kiosks; acquired for $67.3 million.
2016: Sold Australian and New Zealand operations to concentrate on U.S. retail markets; these were rebranded as Winc. A proposed $6.3 billion merger with Office Depot was blocked by the Federal Trade Commission.
2018: HiTouch Business Services, supplier of office supplies along with workspace design and IT solutions.
2019: Acquisitions included Essendant, a national wholesale office supply distributor; and DEX Imaging, a U.S.-based document imaging dealer.
2020: Purchased Montana-based 360 Office Solutions with multiple locations throughout the state.
2021: Exited markets in Germany, Portugal, Benelux (while retaining brand rights), Finland, Norway, Sweden, Denmark, Austria, Great Britain, and Poland; marking a strategic retreat from most European territories.
2023: Dutch retailer 123inkt.nl acquired Staples Benelux following bankruptcy proceedings of Staples Netherlands.
2023: Staples Canada completed acquisition of Ontario-based Beatties Stationery.

These acquisitions and disposals illustrate Staples’ ongoing strategic adjustments aimed at reinforcing its primary U.S. market position while streamlining international operations through targeted expansions and withdrawals to improve financial outcomes and market competitiveness.

Community engagement

In August 2002, Staples established the Staples Foundation for Learning to aid educational initiatives and youth organizations. The foundation collaborates with groups including Boys & Girls Clubs of America, Ashoka, Earth Force, Initiative for a Competitive Inner City, Hispanic Heritage Foundation, and ReadBoston.

The "Easy Button," a novelty office gadget that vocalizes "That was easy" when pressed, was introduced by Staples in August 2005. The initial US$1 million in yearly profits generated from this product were donated to Boys & Girls Clubs of America. By December 2006, the Easy Button was retailed between $4.99 and $6.99 in stores across the United States and Canada, with Canadian proceeds benefiting the Special Olympics. Reportedly, total sales of the Easy Button have surpassed $7.5 million.

Environmental initiatives

Staples is recognized as one of the EPA’s top 25 Green Power Partners. In 2006, the company offered over 2,900 office supplies containing recycled materials and has been advancing the development of Staples-branded products utilizing environmentally sustainable raw inputs. Following advocacy for sustainability, Staples implemented a green paper policy aimed at increasing availability of post-consumer recycled paper and eliminating products sourced from endangered forests.

The fulfillment center located in Hanover, Maryland features a solar power system generating 1.01 megawatts and spans nearly 175,000 square feet of rooftop space. Additionally, the Savi Ranch store in Yorba Linda, California is equipped with a significant rooftop solar installation. Staples also introduced energy-saving protocols within its Copy & Print Centers by enabling copiers to enter sleep mode after 15 minutes of inactivity, resulting in nearly $1 million in annual savings and reducing carbon dioxide emissions by more than 11 million pounds.

In November 2014, Staples partnered with EnergySage to provide gift cards to homeowners and businesses installing solar energy systems.

Recycling programs

Staples accepts all used ink and toner cartridges for recycling purposes. Prior to 2008, only cartridges from HP, Kodak, and Dell qualified for recycling rewards, which consisted of a $3 store coupon limited to 25 coupons per customer. Since 2009, ink cartridge recycling has been incorporated into the Staples Rewards program.

As of July 2010, customers receive $2 back on all ink cartridges and toner purchases through the Rewards program. These credits are issued monthly as separate coupons; most customers can redeem up to ten cartridges monthly while Staples Plus and Premier Rewards members are eligible to recycle up to twenty cartridges per month.

Beginning February 28, 2013, eligibility for the $2 credit per cartridge requires customers to spend at least $30 on ink products within 180 days following cartridge recycling.

Pricing strategies

A Wall Street Journal study in 2012 revealed that Staples employs location-based price adjustments influenced by proximity to competitors such as OfficeMax and Office Depot. This approach often results in elevated prices for rural consumers who generally have lower income levels.

Data security incidents

In October 2014, Staples encountered a suspected data breach impacting multiple stores in the Northeastern United States. The issue was initially reported by KrebsOnSecurity after financial institutions noticed a pattern of fraudulent card activity. Staples confirmed an ongoing investigation involving law enforcement agencies.

By December 2014, Staples disclosed that malware had infiltrated point-of-sale systems at 115 U.S. locations, potentially exposing payment card information from mid-July through mid-September of that year. Approximately 1.16 million payment cards were believed compromised, adversely affecting the company’s financial results and reputation.

In July 2015, a data breach was reported affecting retailers utilizing online photo software developed by PNI Technologies, recently acquired by Staples. Clients impacted included Walmart Canada, CVS, Rite-Aid, Costco (U.S. and Canada), and Tesco UK. Following this disclosure, Staples’ stock value declined roughly 10%, resulting in an approximate $1 billion reduction in market capitalization.

Most recently, towards the end of 2023, Staples suffered a cyberattack disrupting its online ordering platform. While details regarding the attack remain unclear and investigations into potential customer data theft continue, the company is actively working to restore operations but has yet to release a comprehensive statement.

These security breaches underscore ongoing cybersecurity challenges that affect Staples’ operational model, financial health, and standing within the retail sector.

Print and marketing services

In addition to office essentials and technology offerings, Staples operates copy and print centers that provide services such as photocopying, scanning, digital printing, faxing, personalized business cards, rubber stamp creation, promotional merchandise, binding, lamination, folding, cutting, and engraving. More intricate or large-scale projects, including PVC signage, are managed at regional production hubs spread across the country.

Within most U.S. locations, customers can access limited UPS shipping options and USPS package drop-off services. Canadian stores extend shipping through Canada Post, FedEx, and Purolator, including international delivery capabilities. In Canada, orders placed online or in bulk are fulfilled at centralized 24-hour production centers that serve designated regions (British Columbia/Yukon, Alberta/Northwest Territories, Saskatchewan, Ontario, Quebec, and the Maritime provinces), ensuring next-day delivery to retail outlets. Staples was a pioneer in offering in-store custom business card printing with its 'Instant Business Cards' service. Moreover, Staples maintains dedicated Print & Marketing Stores—currently four in New York City and one in Salem, Massachusetts—operating under the Staples brand.

Tech services

Certain Staples locations feature Staples Tech Services (previously known as EasyTech), which provides computer repairs, home and office network installations, and instructional support. Beginning in 2005 with pilot initiatives such as "Heavy Up" and "Double Up," Staples broadened its technology service offerings to rival competitors like Best Buy’s Geek Squad and Circuit City’s Fire Dog.

The "Easy Resident Tech" program debuted in 2006, introducing on-site computer repair technicians within stores. By January 2007, these services were rebranded as Staples EasyTech, incorporating kiosks staffed by technicians identifiable by gray polo shirts. In July 2008, all technical personnel adopted the unified "EasyTech" branding with black polo shirts to highlight enhanced service capabilities aimed at accelerating customer assistance; stores with higher demand employed multiple technicians.

In November 2008, Staples unveiled eleven Best Tech concept stores focusing on technology solutions tailored for small businesses. These outlets expanded their product selections to include digital signage systems, small business servers, NAS devices, and networking hardware for enterprises. Staff roles evolved into "Tech Advisors" and "Solutions Advisors." Additionally, Staples collaborated with on-demand IT service providers to offer network monitoring and advanced configuration support.

The Best Tech concept stores are primarily situated in New Hampshire (Nashua, Seabrook, West Lebanon, Dover, Concord), with additional sites in Massachusetts (Auburn) and renovated locations in Connecticut (Newington) and Massachusetts (Natick).

General and cited references

Dalkir, S. and F. Warren-Boulton (2003). "Market Definition and the Price Effects of Mergers: Staples-Office Depot (1997)", in John E. Kwoka and Lawrence J. White, eds. The Antitrust Revolution: Economics, Competition and Policy, 4th edition. Oxford University Press.

External links