Going against the retail industry’s popular trend of keeping stores open on Thanksgiving, Staples, Inc. (SPLS - Analyst Report) has yet again decided to keep its stores closed like the previous year. The company said it wants its customers and employees to enjoy Thanksgiving with family and friends. In fact, the leading retailer of office products and services will officially kick-start the holiday season from Black Friday.
Nevertheless, customers can shop online on Thanksgiving via Staples.com and can avail great deals. The company will open its stores at 6 a.m. on Black Friday and continue with its deals through Cyber Monday.
Moreover, the retailer will offer amazing holiday saving deals both in store and online, starting early November. The move is a strategic attempt to take on a more competitive stance against its brick-and-mortar as well as online rivals. During the holiday season, retailers intend to draw shoppers who start early and seek attractive deals.
Furthermore, keeping up with the changing trends, Staples has been heavily investing on boosting its online presence to drive sales. We believe the company’s decision to keep its stores closed on Thanksgiving Day, while providing customers the option to shop on the web indicates its intention to promote its online business.
Following the verdict on the merger with Office Depot, Inc. (ODP - Analyst Report) , the company has outlined certain plans to increase long-term value. In order to acquire new customers, the company intends to increase its offering of products as well as services beyond office supplies. Staples expects to improve its supply chain capabilities by adding more than 1,000 associates to its mid-market sales team. However, the challenges presented by the office supplies sector and unfavorable currency fluctuations are potent concerns for Staples. As per recent media report, Costco Wholesale Corporation (COST - Analyst Report) and Wal-Mart Stores Inc. (WMT - Analyst Report) are also striving to enter the office supply delivery services which will further intensify the competition.
Staples currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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