Podcast Summary: Omni Talk Retail – "Is Staples' Services Strategy Enough to Save the Office Supply Giant? | Fast Five Shorts"

Release Date: July 11, 2025
Host/Authors: Chris Walton and Anne Mezzenga

Introduction

In the episode titled "Is Staples' Services Strategy Enough to Save the Office Supply Giant? | Fast Five Shorts," Omni Talk Retail delves into Staples' recent strategic pivot from traditional office supplies to a services-oriented business model. Hosts Chris Walton and Anne Mezzenga analyze whether this shift can revitalize Staples amidst declining sales and stiff competition from e-commerce giants.

Staples' Strategic Shift

Chris Walton: Staples has been actively rebranding itself by integrating various services alongside its conventional office supply offerings. As highlighted by Modern Retail, Staples now draws significant customer traffic through services such as printing, shipping, and passport processing (00:00).

Key Services Introduced:

• Printing Services: Remains a core component, leveraging partnerships like Canva for design services, allowing customers to print from digital platforms directly.
• Passport and TSA PreCheck Services: In 2022, Staples launched same-day passport photo and processing services, alongside TSA PreCheck enrollment available in about 200 stores, resulting in approximately 1 million approvals annually.
• Verizon Partnership: Recently, Staples initiated a pilot program in collaboration with Verizon to sell phones and devices in-store, along with offering business-specific internet and phone plans. President of Staples US Retail, Marshall Warkinton, announced the expansion of this partnership from five to 30 stores within the summer (00:00).

Challenges Facing Staples

Despite these initiatives, Staples faces significant hurdles:

Chris Walton: Staples' attempt to acquire Office Depot and OfficeMax in 2015 was thwarted by antitrust concerns, leading to its acquisition by Sycamore Partners in 2017. As a private entity, Staples no longer discloses revenue or profit figures, placing greater emphasis on its ability to provide sustainable business services (00:00).

Anne Mezzenga: The core business of printing is described as "a dying business" (01:48). She criticizes Staples' service offerings—passport photos, TSA PreCheck, and mobile phone activations—as isolated services that do not complement the declining printing sector. Mezzenga argues that these services face intense competition, leading to higher customer acquisition costs for Staples compared to specialized competitors (01:48).

Comparative Analysis: Office Depot and OfficeMax

Anne reflects on a conversation with Kevin Moffett, President of Office Depot, highlighting the differences in strategic approaches between the two companies:

• Office Depot's Value Proposition: Despite evolving business needs, Office Depot maintains relevance by offering the fastest in-store pickup services globally, available within 20 minutes or less (02:44).
• Geographical Advantage: With approximately 945 locations covering 90% of the US population within a five-mile radius, Office Depot continues to serve small businesses effectively by being a one-stop-shop for various business needs, including printing and shipping (02:44).

Future Outlook and Long-term Viability

Both hosts express skepticism about Staples' long-term strategy:

Anne Mezzenga: While acknowledging the current value offered by Staples' services, she anticipates that traditional services like mass printing will eventually diminish. She suggests that new, innovative methods will replace existing services, indicating uncertainty about Staples' ability to sustain its current trajectory (02:44).

Chris Walton: Agrees that while Staples is making strategic moves, the reliance on declining core services coupled with fragmented service offerings poses a challenge for long-term sustainability (03:35).

Industry Implications and Opportunities

The discussion extends to broader retail implications:

Chris Walton: Observes that other retailers, such as Costco or Sam's Club, could potentially adopt similar service-based strategies. He questions why more retailers aren't integrating services like TSA PreCheck applications into their offerings, suggesting a missed opportunity for broader market engagement (04:35).

Anne Mezzenga: Highlights that while services like passport processing are beneficial, they may not drive significant margins compared to high-ticket items like office chairs, which customers are more likely to purchase online for better prices. This underscores the challenge of balancing service offerings with profitable product sales (05:08).

Conclusion

The episode concludes with a consensus that Staples' shift towards a services-oriented model presents both opportunities and significant challenges. While services can drive foot traffic and offer additional revenue streams, the declining core business of office supplies and the competitive nature of these services raise questions about the sustainability of Staples' strategy. Hosts suggest that while Staples may experience a "slow burn" in adapting to the new market demands, its long-term success remains uncertain in a rapidly evolving retail landscape.

Notable Quotes:

• Anne Mezzenga (01:48): "If your core business, as the article says, is still printing, that's a dying business... the services you’re offering... are helping you."

• Chris Walton (02:44): "I think we're in a slow phase out of the mass printing like we used to see..."

• Anne Mezzenga (04:49): "If I'm a retailer listening, I'm like, why aren’t I doing that too?"

• Chris Walton (05:35): "Yeah, 100% agree."

Key Takeaways

• Staples' Adaptation: Transitioning from traditional office supplies to a service-centric model is a strategic attempt to regain relevance.

• Service Offerings: While innovative, Staples' services such as printing, passport processing, and mobile device sales face significant competition and may not compensate for the declining core business.

• Competitive Landscape: Other retailers have the potential to adopt similar service strategies, posing a threat to Staples if they fail to differentiate themselves.

• Long-term Viability: The sustainability of Staples' strategy is questionable given the inherent challenges in balancing declining traditional sales with fragmented service offerings.

• Industry Evolution: The office supply sector is witnessing a transformation, with a gradual shift away from mass printing towards integrated service solutions, though the long-term landscape remains uncertain.

This episode provides a critical examination of Staples' strategic direction, offering valuable insights for retail professionals and stakeholders interested in the evolving dynamics of the office supply and service industry.