While Staples and Blockbuster don’t have many similarities, the one thing that they do have in common is that they both bear the backlash to consumer spending shifting online. Blockbuster has gone completely out of business as a result. Does Staples face a similar fate?
According to a recent news story on BNN, Staples Canada has had to close 15 out of 331 stores in the country. As well, Staples Inc. has had to close down 12 percent of all North American stores – and downsize the ones that are still running. All of this because “the market is changing.”
This completely relates to the topic of transient advantage that we discussed a few classes ago.
Blockbuster has in fact proven itself to be non-transient in terms of growth and strategy. Will Staples be the same?
In my humble opinion, Staples could take a few hints from Toys “R” Us. While it is a good approach for Staples to downsize their stores, they could take a cue from the toy retailer and convert store space to backrooms. This would allow customers to pick up their online orders at their stores. (Strauss)
According to the Globe and Mail article that the Toys “R” Us story was presented in, while retail will probably NOT shift to being completely online, it is important for retailers to be good at both. This sums things up nicely.
Works Cited:
Strauss, Marina. “As Buyers Move Online, Retailers Shift Space from Stores to Storage.” The Globe and Mail. The Globe and Mail Inc., 3 June 2014. Web. 04 Oct. 2014.
Strauss, Marina. “Staples Closes 15 Stores in Canada – BNN News.” Staples Closes 15 Stores in Canada – BNN News. Bell Media Television, 1 Oct. 2014. Web. 04 Oct. 2014.