Staples, Inc. (Nasdaq: SPLS) investors are thrilled as the world's largest office supply company's share price is making new 52-week highs and is up 40% year-to date. Quite remarkable!
Staples shareholders think that the company is making all the right moves toward transforming this big-box retailer into something beyond what the average customer is accustomed to when they think of a Staples store.
In fact, the company has evolved to the point where, unbeknownst to many, it is no longer just a big-box retailer but also the second largest e-retailer behind Amazon (NASDAQ: AMZN) with internet sales totaling $11 billion in 2012, which currently account for more than half of its business today.
Staples is pushing to downsize operations while moving with some success even further into the e-commerce world. The company faces many headwinds as it struggles with the general economic conditions and small business concerns both in the U.S. and abroad.
Staples could very well be fighting the good fight but is it enough...
Staples Shredding Stores
We Want to Hear From You: Are Retailers' Stimulus Measures Persuading You to Spend?
Faced with a wheezing economy that can't seem to heal, big U.S. retailers like Target Corp. (NYSE: TGT) and Office Depot Inc. (NYSE: ODP) are creating their own stimulus measures to lure hesitant shoppers back into stores.
Through such tactics as loan programs, credit card rebates and gift card giveaways, top retail chains are rolling out promotional strategies, hoping to break consumers out of their anti-spending doldrums.
"A lot of the government programs have come to an end," David Bassuk, an expert from financial consultancy AlixPartners, told The New York Times. "So retailers are taking it upon themselves to do everything they can to get the consumer to spend, even opening up their wallets to give money back to the consumer."
Sam's Club is taking an unusual approach: It's offering loans of $5,000 to $25,000 to its members, backed by the Small Business Administration. Superior Financial Group is managing the loans and will give Sam's members a $100 discount on the loan application fee and lower interest rates.