Full Description

Staples, Inc. (Staples) is an office products company. Staples, Inc. and its subsidiaries are engaged in providing a range of office products, including supplies, technology, furniture and business services. The Company operates three business segments: North American Delivery, North American Retail, and International Operations. The Company’s North American Delivery segment consists of three businesses: Staples Business Delivery, Quill and Contract (including Corporate Express). During the fiscal year ended January 31, 2009 (fiscal 2009), its North American Retail segment consisted of 1,835 stores throughout the United States and Canada. Its International Operations operates under various names in 25 countries in Europe, Asia, South America and Australia. In July 2008, Staples completed the acquisition of Corporate Express N.V., one of the suppliers of office products to businesses and institutions. As of August 22, 2008, Staples had substantial interest of 58.79% in Corporate Express Australia Limited.

North American Delivery

The Company’s Contract operations focus primarily on serving the needs of mid-sized businesses and organizations (20 or more office workers) through Staples Business Advantage and Fortune 1000 companies through Staples National Advantage. Through its Contract sales force, it offers customized pricing and payment terms, usage reporting, the stocking of certain items and full-service account management. Staples Business Delivery operations combine the activities of its direct mail catalog business, including its Staples.com Website and its Canadian Internet sites. Staples Business Delivery is primarily designed to reach small businesses and home offices, offering next business day delivery for most office supply orders in its markets. Quill is a direct mail catalog and Internet business with a targeted approach to servicing the business product needs of small- and medium-sized businesses in the United States. Quill also operates Medical Arts Press, a specialty Internet and catalog business offering products for medical professionals.

North American Retail

The Company’s North American retail stores are located in 47 states, the District of Columbia, 10 Canadian provinces and two Canadian territories in both major metropolitan markets and smaller markets. It operates multiple retail formats, including its 18,000 square foot prototypical Dover superstore. It also operates 14,600 square foot format for rural markets and a 10,000 square foot store for urban markets, such as New York City. As of January 31, 2009, it operated approximately 850 Dover stores. It also operates a 4,000 square foot stand alone copy and print shop format.

International Operations

The Company operates European printing systems business. This business is a reseller of printing equipment and related services, supplies, and spare parts, and is the independent distributor of Heidelberg offset printing presses. It operates retail and delivery businesses in China, a delivery business in Taiwan through a joint venture with UB Express, and a multi-channel business in India through a joint venture with Future Group. It also operates delivery businesses in Argentina and Brazil and a retail business in Argentina. The Company’s product offering includes Staples, Quill, and other branded products, which represented approximately 23% of its sales during fiscal 2009. It also offers an array of services, including high-speed, color and self-service copying, other printing services, faxing, and pack and ship.

The Company competes with Office Depot, OfficeMax, Wal-Mart, Costco, Best Buy, FedEx Office and Amazon.com.