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History
It all started with a broken printer ribbon. During the Fourth of July weekend in 1985, Staples founder Tom Stemberg, a former supermarket-chain executive, turned his personal frustration into a new retail category. Stemberg was writing a business plan when his printer ribbon broke. His regular supplier, the neighborhood stationery store, was closed for the holiday. Other stores farther away did not stock Tom’s ribbon. During this fruitless search he realized that what the world needed was a supermarket for office supplies.
Until Staples, small businesses and consumers paid a premium for office supplies at the neighborhood store. Large companies could negotiate huge discounts with contract stationers. Staples was created to give the same deep discounts to people operating small businesses.
Staples, Inc. opened its first store in Brighton, Massachusetts, on May 1, 1986. The combination of convenience and low prices was such a success that some 20 competitors launched similar retail concepts over the next two years. Though most looked a lot like Staples, few could copy the original’s staying power. Only two other office superstores remain in business. They are not, however, Staples’ only competition. Retailers ranging from mass merchant discounters to the corner pharmacy all sell some office supplies.
With so many companies racing Staples for market share, growth came fast and furious. One year after opening its doors, Staples was expanding into New York City. By 1990 Staples had jumped to the West Coast and was operating in Los Angeles.
A year later Staples was going international, expanding into Canada. In 1992 Staples leapfrogged the Atlantic, opening stores in the United Kingdom and Germany. Staples now has more than 200 stores in Europe and has expanded into Portugal, the Netherlands, and Belgium. By the time Staples celebrated its 10th anniversary it was one of only six companies in U.S. history to achieve annual sales of $3 billion within a decade of startup.
The biggest driver of Staples growth has been the small-business customer. Small businesses wanted the convenience of delivery, so Staples introduced a catalog in 1989. In 1998 the company took the wraps off its award-winning eCommerce site, Staples.com®, and became one of the first retailers to truly integrate its Web site into its retail stores. That same year Staples acquired Quill Corp., a direct marketer respected for its customer service. Together these companies make up Staples Business Delivery™ and specialize in serving small and medium-sized businesses and professional offices.
The business model that Tom Stemberg implemented in 1986 is now one of Staples fastest-growing divisions. Serving Fortune 500 companies and large regional businesses, Staples Contract is revolutionizing procurement for big businesses. It combines impeccable service with the efficiency of tailor-made eBusiness platforms. Customers get the advantage of customized services and pricing, along with centralized tracking and billing. Using StaplesLink.com®, Contract customers can check real-time availability of inventory, company-specific contract pricing, and line-item shipping status.
Staples latest acquisition is its European Catalog Business, which dramatically expands Staples presence in Germany, the Netherlands, Belgium, Portugal, the United Kingdom, France, Italy, Spain, and Sweden. |
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