[onion2k]

Realistically the only way they can go is down. People just aren't even going to buying more of what they sell. The threat isn't Amazon, it's Apple. People are going to continue to use devices more and pens less right up until no one uses pens any more.

Also, bear in mind that you're quoting an article from 2013, and Staples stock fell by about 25% in 2014. They've picked up a little since then, but they're not going to get back to where they were. Their market is slowing disappearing.

[hnnewguy]

>People are going to continue to use devices more and pens less right up until no one uses pens any more.

And what prevents Staples from adjusting their product offerings to lean more towards "devices", and less towards "pens"?

Amazon used to sell only books....

[onion2k]

Nothing at all, but their past performance of selling pens is not an indicator of how well they sell devices, or if there'll even be a market for selling other manufacturers devices in the future. Staples are very good at repeat sales of core business stationary. That market is not going to exist for that much longer.

Maybe they'll move to a different market successfully, maybe they won't. They wouldn't be the first once successful company to fail as the market changes though.

[Retra]

I've been hearing that for decades, and while the latest round of technology is a step in that direction, it is not significant enough to overcome the advantages of existing office supplies. (Largely because nobody really knows what those advantages are in a way that can be outmaneuvered digitally.)

How long do you imagine 'that much longer' to be? That sounds too weaselly to be accurate.

[inmygarage]

Yes, I agree.

My point is that these business are a lot larger than people realize, and that the phase out is going to be a lot slower than people think because it's primarily enterprise recurring contracts that are powering their sales.

That said, I use the printer at my office maybe 1x/week, so I agree that it's not long-term sustainable. This is why consolidation is a good bet for short-term viability and the deal is a good one for Staples for right now.

[ignostic]

I have some experience consulting with one of these companies, and I know they understand the importance of moving past paper and into things like tablets and ereaders. It's perhaps their primary focus to transition to new tech without confusing existing customers.

I agree it's a good idea for both companies. There's a perception that's perhaps unfair that these companies are complacent relying on paper and ink. These kinds of things are important to their current business, but both companies are more forward-thinking than most people give them credit for.

[JoeAltmaier]

Staples sells devices - pads, scanners, printers. That's a big part of their business.

[thornygreb]

Like the paperless office? Still waiting...

[cartoonfoxes]

The Myth of the Paperless Office is a wonderful read. https://mitpress.mit.edu/books/myth-paperless-office

[cptskippy]

I wouldn't say their market is disappearing because I don't ever think the need for pen and paper will ever disappear. It's definitely shrinking and there's market adjustments occurring but I don't see them ever going away.

[gnrlbzik]

Is that disappearing truly due to demand drop off or just because everyone is cutting something off?