Business Analysis of Staples

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Staples

Business Overview

Staples, Inc., together with its subsidiaries, operates office products superstores. It operates in two segments, North American Delivery and North American Retail. The company offers a range of office supplies, business technology products, facility and breakroom supplies, computers and mobility products, and office furniture under the Staples, Quill, and other proprietary brands. It also provides print and marketing, as well as technology services. The company sells its office products and services directly to businesses and consumers through its Staples.com, Staples.ca, and Quill.com Websites; and retail stores, as well as Staples Business Advantage contracts. As of January 28, 2017, it operated approximately 1,583 retail stores in 46 states and the District of Columbia in the United States, and 10 provinces and 2 territories in Canada, as well as in Argentina, Australia, and Brazil; 78 distribution and fulfillment centers in 25 states in the United States and 7 provinces in Canada, as well as in China, Argentina, Brazil, Taiwan, and Australia. The company was founded in 1985 and is based in Framingham, Massachusetts.

Staples

Staples


R&P Rank: 146
Sector: Retail
Industry:Specialty Retail
H.Q Location:Massachusetts
Website: www.staples.com
Company Address:
500 STAPLES DRIVE, P O BOX 9328, FRAMINGHAM MA 01702
Ph:508-253-5000

Business Analysis of Staples

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Staples compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Staples to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Staples with an interactive chart.

  1. Revenue Growth: Staples reported a revenue growth of -4.7% year-on-year during 2016. Specialty Retail Industry grew at -1.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Staples spent 73.9% of its total revenues on COGS. Specialty Retail industry average (COGS share of revenue) in the same period was 76.8%
  3. R&D share of Revenues: Staples R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Staples spent 21.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Specialty Retail industry average SG&A spending in the same period was 16.8%
  5. Inventory share of Revenues: As a percentage of revenue, Staples spent 9.5% of its total revenues on Inventories. Specialty Retail industry average Inventory spending in the same period was 13.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Staples invested 9.0% of its total revenues on Accounts Payable (A/P) Specialty Retail industry average Accounts Payable investment in the same period was 7.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Staples invested 8.2% of its total revenues on Accounts Receivable (A/R). Specialty Retail industry average Accounts Receivable investment in the same period was 8.4%
  8. PP&E share of Revenues: As a percentage of revenue, Staples invested 6.9% of its total revenues on Property, Plants, and Equipments (PP&E). Specialty Retail industry average PPE investment in the same period was 11.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Staples invested 12.1% of its total revenues on Intangibles. Specialty Retail industry average Intangibles investment in the same period was 7.2%
  10. Net Margins: Staples Net Margins in the year 2016 were 2.0%. Specialty Retail industry average Net Margins in the same period were 2.7%

Sector and Industry Association of Staples

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Staples is associated with Retail Sector and Specialty Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of Staples

With $18.8 billion revenues, Staples ranked number 4 of all the companies in the US Specialty Retail industry. There were a total of 50 public companies in the US Specialty Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Specialty Retail industry by revenues during 2016 were:

  1. Best Buy ($39.5 billion)
  2. AutoNation ($21.6 billion)
  3. Penske Automotive Group ($20.1 billion)
  4. Staples ($18.8 billion)
  5. CarMax ($15.1 billion)
  6. Murphy USA ($11.6 billion)
  7. CST Brands ($11.1 billion)
  8. Office Depot ($11 billion)
  9. Group 1 Automotive ($10.9 billion)
  10. Sonic Automotive ($9.7 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Staplesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of staples

Best Buy (BBY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Best Buy Co Inc with $40 billion revenues in the year 2016 was the number 1 Specialty Retail company. Read this report to know the top competitors of Best Buy and identify growth and cost optimization opportunities of Best Buy

AutoNation (AN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AutoNation, Inc. with $22 billion revenues in the year 2016 was the number 2 Specialty Retail company. Read this report to know the top competitors of AutoNation and identify growth and cost optimization opportunities of AutoNation

Penske Automotive Group (PAG) Business Analysis – Analyze Historical Performance, Strategic...

Penske Automotive Group, Inc. with $20 billion revenues in the year 2016 was the number 3 Specialty Retail company. Read this report to know the top competitors of Penske Automotive Group and identify growth and cost optimization opportunities of Penske Automotive Group

CarMax (KMX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CarMax Inc with $15 billion revenues in the year 2016 was the number 5 Specialty Retail company. Read this report to know the top competitors of CarMax and identify growth and cost optimization opportunities of CarMax

Murphy USA (MUSA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Murphy USA Inc. with $12 billion revenues in the year 2016 was the number 6 Specialty Retail company. Read this report to know the top competitors of Murphy USA and identify growth and cost optimization opportunities of Murphy USA

CST Brands (CST) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CST Brands, Inc. with $11 billion revenues in the year 2016 was the number 7 Specialty Retail company. Read this report to know the top competitors of CST Brands and identify growth and cost optimization opportunities of CST Brands

Revenues Analysis

Staples (SPLS) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Staples Inc (SPLS) from 2012 to 2016. Staples generated a total of $18.8 billion revenues during 2016. Staples reported a revenue growth of -4.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Staples (SPLS) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Staples Inc (SPLS) from 2002 to 2016. Staples generated a total of $18.8 billion revenues during 2016. Staples reported a revenue growth of -4.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Staples (SPLS) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Staples Inc (SPLS) revenue growth with Specialty Retail industry growth during the last five years from 2012 to 2016. Staples reported a revenue growth of -4.7% year-over-year during 2016. The Specialty Retail industry growth was -1.6% year-over-year during 2016. Staples growth was slower than the industry during 2016.

Profit Analysis

Staples (SPLS) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Staples Inc (SPLS) from 2012 to 2016. Staples reported a total net income of $379 million during 2016. Sta