World's largest retailer of office products and services,
) forayed into the Japanese market through a wholesale
distribution agreement with Jointex, a leading wholesaler of
office products and a division of PLUS Corp.
The company stated that the Staples brand products will be
made accessible via numerous dealers and over 25 retail outlets
in Japan. Initially starting with notebooks, writing instruments,
filing products, fasteners, and other business essentials, the
company will gradually expand its offerings.
The move comes as a part of the company's strategic
initiatives to boost its financial results. Staples now focuses
on reviving international operations and expanding in newer
markets, improving store productivity by generating incremental
sales per store, accelerating growth in adjacent categories,
increasing market share in core office supplies and streamlining
its cost structure. Through its cost-cutting endeavors, the
company intends to save approximately $250 million annually by
the end of fiscal 2015.
The company is now concentrating more on product categories
besides core office supplies, such as facilities and breakroom
supplies, copy and print, mobile phones and accessories, and new
technology products like tablets and eReaders.
Further, the world's second largest online retailer after
) is contemplating to enhance its e-Commerce activities to better
serve its customers, which in turn will facilitate the company to
generate incremental sales.
The company is also better positioned than its peer,
), to sustain its growth based on effective merchandising,
increasing customer awareness, enhanced online features, expanded
assortments and store refurbishing program.
Despite these measures, currently, shares of Staples hold a
Zacks Rank #3 (Hold) as we remain cautious on the macroeconomic
environment and a sluggish job market, with small businesses and
consumers still remaining watchful on their spending.
However, until any further upward revision in Staple's rating,
the other office product supplier worth considering is
Office Depot Inc
), which holds a Zacks Rank #2 (Buy).
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