In early June, Staples launched the first of two omnichannel stores.  This unique concept has a smaller footprint than its other stores.  Traditional Staples stores are usually around 18,000 to 24,000 square feet; the new format will be around 12,000 square feet.  The new concept stores will only feature 6,000 to 8,000 of Staples’ most popular SKUs.  However, they will feature multiple kiosks that allow customers to search through almost 100,000 SKUs.  The two stores are located in Massachusetts and Delaware.

Customers can use the kiosks to search for additional merchandise that will be available with free, next business day delivery. Known as The Business Lounge, stores will also feature meeting spaces with conference tables, charging stations, copy and fax machines, printers, computers, and Starbucks coffee.  The concept shop will also provide consultation services for small businesses as well as copy and print services.

Within the next year, over 45 of Staples’ 1,500 stores will be converted to the smaller format.  This will capitalize on Staples’ operational efficiencies of next day delivery and reduce the rent expenses.  While Staples claims to be the world’s second largest internet retailer, the smaller footprint allows Staples to continue its brick and mortar presence.  Staples believes this new format will capitalize on the “interplay of the retail network and online.”

Discussion Questions:

1. What is Staples’ new store concept?

2. Do you believe these stores can achieve the same amount of sales as their regular stores?

3. Does this Staples format appeal to you?