Staples to rebound strong from failed merger

Bloomberg

Staples Inc., looking to bounce back after a failed mega-merger, is bulking up its online selection and shortening delivery times to make the most of the back-to-school shopping season, which is more important for the office-supply retailer than the winter holidays.
More than 1,000 products — including a wider assortment of technology products, such as headphones and tablets — have been added to its e-commerce store, and same-day delivery is now available, the Framingham, Massachusetts-based company recently said.
While back-to-school is always critical for the office-supply retailer, it’s especially important this year after Staples’ plan to merge with Office Depot Inc. in a $6.3 billion deal was quashed by regulators in May. Staples has the added challenge of fending off an incursion into its business by web behemoth Amazon.com Inc., which is hosting its annual Prime Day sale extravaganza Tuesday. Steven Matyas, Staples’ president of North American retail, said that his company will gain an edge by providing bargains throughout the season.
“Our role is to make sure we’re there for customers with the lowest prices guaranteed,” Matyas said in an interview.
In a little more than a month, US children will be returning to school, and parents will be sending them off in new clothes and wearing new backpacks full of freshly purchased supplies, including gadgets. Back-to-school sales this year are expected to rise 3.3 percent to $540 billion, up from $523 billion, according to research firm Customer Growth Partners. That increase is slower than the 4 percent-plus gains the past two years.
Amazon will account for about a quarter of this year’s $17 billion increase in back-to-school sales, the New Canaan, Connecticut-based firm said. The company could grab even more share if Amazon Prime Day even partly lives up to expectations.
“Back-to-school shoppers in 2016 will be cautious in spending, but relentless in searching for value,” Customer Growth Partners President Craig Johnson said. “The retail winners will be those that provide real newness, relevant to consumers and how they like to shop today — at a great price.”