It may look counterintuitive that Staples –an office
supplies retailer- is the third largest online retailer with $10.4 billion
online sales in 2013 (45% of total revenue)[i].
After all, office supplies doesn’t sound as the first thing to be bought online
nor are the most expensive items. However, it was only last year that this retailer
lost the second place among the biggest online retailers, being surpassed by the
giant Apple. Staples’ products also include computers, cellphones, electronics,
furniture and many others, which I thought could explain the outstanding
company’s online revenue. However, office and school supplies account for the biggest
percentage of total sales (45%).[ii]
In 2013 Staples announced a new type of smaller stores that
engage visitors with interactive kiosks aimed at driving more sales to Staples.com.
An important role in online sales is also played by Staples Rewards program,
which offers customers 5% back in online/offline purchases as well as free
shipping.[iii]
While the rise of ecommerce has been seen as a threat for many
retailers, Staples seems like it has managed to successfully use this trend in
its favor. Nevertheless, everything has a price (especially for store
employees). In 2013, the company had 40 net store closures in North America and
40 downsizes and relocations. It also initiated a plan to close up to 225
stores by the end of 2015.[iv]
This demonstrates a progressive migration from a brick and mortars business
model to online. Will that be the fate of all the retail giants?
[i] http://marketingland.com/apple-takes-2-position-internet-retailers-list-e-commerce-sales-leaders-82991
[ii] http://netonomy.net/2013/10/04/selling-office-supplies-online-an-ecommerce-market-report/
[iii] selling-office-supplies-online-an-ecommerce-market-report
[iv] http://www.marketwatch.com/story/fitch-withdraws-ratings-on-certain-utica-ny-municipal-bond-maturities-2013-03-06
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