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Staples is an American office supply retail company that opened in 1986. Thank you for your suggestion. Staples was founded in November of 1985 by Thomas Stenberg and Leo Kahn, who had previously competed against each other in the Boston grocery market. Stenberg had worked in the New England food business since graduating from Harvard Business School in 1973, after his employer fired him in 1985 because of philosophical differences, used his year's worth of severance pay to explore other business opportunities. Stenberg was interviewing for a job at a generalized warehouse club retailer when he noticed that the aisle featuring office supplies was in disarray, attesting to the popularity of the products which moved quickly out of the store. When he learned that this small category of goods accounted for 7% of all warehouse store sales, Stenberg recognized a niche market that would provide him with the opportunity he wanted. In formulating his concept for an office supplies warehouse, Stenberg drew on several demographic factors. As large corporations cut their workforces, small businesses were taking up the slack in the American economy, signaling a quickly expanding lucrative market. In addition, the service sector of the economy was growing rapidly and such business typically used a good deal office supplies. Stenberg's plan called for the elimination of the middleman in office supply distribution. Traditionally, manufacturers of paper and other items sold their goods to one of six major wholesalers around the country. The wholesalers then sold their goods to office supply dealers in stationary stores. The dealers sold supplies to large corporations while stationers catered to small businesses and individuals. Along the way, however, the two layers of middlemen between the factory and the customer drove up costs dramatically. With his staples store, as he planned to call the outlet, Stenberg would collapse those two layers into one because suppliers would be purchased directly from manufacturers. The store would be able to offer much lower prices than its competitors in the heavily fragmented retail environment. Stenberg approaches old nemesis, Khan, who invested $500,000.
