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Will Staples' (SPLS) Strategic Initiatives Propel Growth?
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With constant efforts to enhance its online presence and streamline operations along with strategic acquisitions and long-term initiatives, Staples, Inc. remains confident of sustaining the growth momentum. Also, this retailer of office products and services has outlined certain plans to boost long-term value, after the termination of its merger with Office Depot, Inc. (ODP - Free Report) .
Growth Drivers
Staples remains committed to expand its offering of products and services beyond office supplies. Also, the company expects to boost its supply chain capabilities through the addition of more than 1,000 associates to its mid-market sales team.
Staples is investing heavily in improving its online presence to drive sales. Further, it refurbished staplesadvantage.com and plans to launch the buy online, pick up in store facility via the website in the coming days. Through this omni-channel strategy, the company hopes to enhance its digital capabilities in the retail network.
Notably, Staples unveiled a new Development Center in Seattle with a view to enhance e-commerce and engineering. This is likely to benefit specific areas like next-generation digital platforms, personalization and big-data. Also, it acquired California-based software company, Runa to further enhance its e-commerce platform as well as customers’ shopping experience. Further, it acquired a software firm, PNI Digital Media. Moreover, the company is improving its site and increasing the speed of search and checkout procedures. We think that these online capabilities will help it to counter competition.
Staples faces stiff competition from online retailers like Amazon.com, Inc. (AMZN - Free Report) , other discount stores and mass merchandisers that have penetrated deep into the office supplies sector. Also, sluggish international sales remain a major concern for the company, owing to a weak macroeconomic environment, particularly in Europe.
Nevertheless, Staples is streamlining its operations in order to drive performance. The company is now focused on improving store productivity, closing underperforming locations and downsizing stores, accelerating growth in adjacent categories, increasing market share in core office supplies and reorganizing its cost structure.
Given the pros and cons embedded in the stock, Staples currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the retail sector is Big 5 Sporting Goods Corp. (BGFV - Free Report) , carrying a Zacks Rank #2 (Buy).
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Will Staples' (SPLS) Strategic Initiatives Propel Growth?
With constant efforts to enhance its online presence and streamline operations along with strategic acquisitions and long-term initiatives, Staples, Inc. remains confident of sustaining the growth momentum. Also, this retailer of office products and services has outlined certain plans to boost long-term value, after the termination of its merger with Office Depot, Inc. (ODP - Free Report) .
Growth Drivers
Staples remains committed to expand its offering of products and services beyond office supplies. Also, the company expects to boost its supply chain capabilities through the addition of more than 1,000 associates to its mid-market sales team.
Staples is investing heavily in improving its online presence to drive sales. Further, it refurbished staplesadvantage.com and plans to launch the buy online, pick up in store facility via the website in the coming days. Through this omni-channel strategy, the company hopes to enhance its digital capabilities in the retail network.
Notably, Staples unveiled a new Development Center in Seattle with a view to enhance e-commerce and engineering. This is likely to benefit specific areas like next-generation digital platforms, personalization and big-data. Also, it acquired California-based software company, Runa to further enhance its e-commerce platform as well as customers’ shopping experience. Further, it acquired a software firm, PNI Digital Media. Moreover, the company is improving its site and increasing the speed of search and checkout procedures. We think that these online capabilities will help it to counter competition.
Staples faces stiff competition from online retailers like Amazon.com, Inc. (AMZN - Free Report) , other discount stores and mass merchandisers that have penetrated deep into the office supplies sector. Also, sluggish international sales remain a major concern for the company, owing to a weak macroeconomic environment, particularly in Europe.
Nevertheless, Staples is streamlining its operations in order to drive performance. The company is now focused on improving store productivity, closing underperforming locations and downsizing stores, accelerating growth in adjacent categories, increasing market share in core office supplies and reorganizing its cost structure.
STAPLES INC Price and Consensus
STAPLES INC Price and Consensus | STAPLES INC Quote
Given the pros and cons embedded in the stock, Staples currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the retail sector is Big 5 Sporting Goods Corp. (BGFV - Free Report) , carrying a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>