What happens when the two biggest office supply companies merge? Other than printer paper, Post-its and pens galore, Staples customers can expect a number of changes.
While we await news of the $6.3 billion Office Depot and Staples merger, it's natural for speculation to begin. Many rumors have already begun about how the buyout would affect the company's business and its customers. With the Staples/Office Deport merger aiming to save $1 billion in otherwise repetitive costs, it leaves many wondering how will those savings be used?
For years, Staples has continued to expand their offerings beyond just selling office supplies. Staples no longer just sells office supplies, but also facilities supplies, office machines, promotional products, furniture, technology, and business services both in stores and online. These added services helped Staples become the #1 seller by volume of office products in the US, which is why the savings obtained from a merger are sure to bring these offerings to the forefront of the business.
Staples customers can already look forward to Android Pay, a new mobile payment solution that offers customers simplicity and security when paying with their Android phones. There is also a new online platform for 3D printing. Users can submit their own customized 3D files to be printed in store. The customization features include a variety of materials and colors as well as offering the ability to add text, figures, and images to any printable project. These are just a few examples of the innovative products Staples intends on offering their customers.
There are also some setbacks that can be expected from a merger. One would be that since Staples and Office Depot will no longer be competing, they will likely close a large amount of stores. This will not affect all customers, but can be an inconvenience for some. However, with fewer location, Staples will be optimizing their delivery options. Ron Sargent, Staples' chairman and chief executive officer said, "[Staples will] aggressively reduce global expenses and optimize our retail footprint. These savings will dramatically accelerate our strategic reinvention which is focused on driving growth in our delivery businesses and in categories beyond office supplies."
Though we cannot confidently say if the merger will be finalized, CoVest can guarantee best-in-class pricing on all that Staples has to offer for our members. We already provide unbeatable savings through our contracts with Staples and look forward to enhancing those those savings if a merger is approved. Regardless of any impact that the merger may create, CoVest members will still obtain savings through the leverage our sourcing network provides.
Interested on seeing an example of the kind of office supply savings CoVest has to offer? Download our Office Supply Savings Report and learn more!