By James Barrie H ow things change in a month as thought to be tag team partners now go head to head for back-to-school supremacy. I am not sure if it will be the most wonderful time of the year for either Office Depot or Staples as the nation’s two biggest office supply retailers battle it out during their busiest sales periods of the year. Staples, the larger of the two competitors, threw the proverbial first punch announcing that it will offer same-day delivery in several major markets for a fee of $14.99. Office Depot answered by going into a hiringmode and said that it will hire over 30 percent more U.S. workers this summer, which is great for those looking for work, focusing on customer service for teachers, students and parents during the back-to-school season. Office Depot’s strategy will add an additional 2,000 staff compared to last summer and push total new hires to over 8,000 looking to show strength in numbers to capture sales. In a recent interview Lynn Gross, Office Depot’s VP of Human Resources for Retail said, “This is our big season, the back-to-school season, so this is when we do the most of our seasonal hiring,” not confirm- ing that this year’s staffing increase was related to the failed merger but Gross did say, “I think, it is a sign that we are moving forward as a stand-alone company and focused on providing superior customer service.”
Gross said most of the summer hires will assist with in-store needs such as stocking shelves, helping custom- ers and working the checkout register. The retailer is also putting a big emphasis on its buy online, pick up in store service, so the hires will also help with those needs.
Other than its same-day delivery for $14.99, Staples has been close lipped about its back-to-school plans
Since a May court ruling declared Office Depot and Staples’ merger a no contest, analysts have questioned whether both could continue to exist as stand-alone com- panies. Staples management was quick to respond, laying out its plan for growth, which included closing more of its North America stores and ramping up its offerings for businesses, but that plan was staggered by a powerful uppercut when Staples CEO, Ron Sargent resigned, stating a need for new leadership in the Staples’ corner Office Depot management has offered few details regard- ing its strategies other than it is hiring consulting firm Bain & Co. to assist with identifying strategic alternatives like a $100 million stock repurchase program. We do know that as these two heavy weights battle it out for back-to-school supremacy; As Amazon continues to bulk up and go after marketing share in an attempt to deliver a knockout punch to both competitors.
Okay back-to-school shoppers, let’s get ready to rumble.
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SPOTLIGHT ON BUSINESS • JULY 2016
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