1. Staples have a very strong balance sheet, with $800M in cash after subtracting long-term debt. Cash
generation is high and long-term debt is only 6% of total capitalization. Return on equity is respectable
at 19%, and has improved steadily over the last few years.
The firm is tweaking its retail strategy by opening smaller stores conducive to smaller markets and highly
urban environments.
Staples benefit from economies of scale in brand awareness, advertising and purchasing power,
and increasing margins that further increase their ability to compete on price.
Staples have been the best-in-class office supply superstore for quite some time. Staples also face
competition outside of the traditional office superstores. The rise of discount and online retailers
and the increasing importance of technology, services and delivery is changing the office products’
competitive landscape. In this area Staples also competes with Wal-Mart, Best Buy, Amazon.com
Varied product lines Established network Clear segment leader
Comprehensive product and service offering
Most efficient supply chain among competitors
Dominant store locations, strong margins, and consistent
operating performance
SPLS brand offering brings higher margins and brand
awareness and loyalty
http://services.corporate-ir.net/SEC/Document.Service?
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http://www.checkcapital.com/Research_Reports/SPLS_Profile_10_07.pdf
http://www.researchandmarkets.com/reports/584467/analysis_of_staples_inc.pdf
http://mmoore.ba.ttu.edu/ValuationReports/Spring2007/Staples-Spring2007.pdf
http://business.library.wisc.edu/resources/kavajecz/09%20Fall/staples_rep.pdf
http://csinvesting.org/wp-content/uploads/2012/08/staples-valuexvail-2012-adrian-mak.pdf
http://www.janney.com/File%20Library/Market%20View%20Daily/Feb19-2013.pdf