Staples sold to private equity firm

Staples, the office supply chain with a location here in Sonoma, has been sold to the private equity firm Sycamore Partners, owner of several other chain retailers. However, as reported in the NY Times, “Sycamore is acquiring a company that is squarely in decline. Sales and gross profits at Staples have fallen for each of the last four full years. At the same time, the company has been shrinking the number of stores it operates.”

Sycamore, reportedly, is expected to close a number of the Staples locations, though whether the Sonoma location will remain open is unknown at this time. Ironically, Staples’ impact on independent, local stationery retailers was almost immediate, and today Staples is the only such supplier in town.

With the rise of internet shopping, retail locations like Staples have found themselves evolving into web-based businesses. Most of Staples’ $18 billion in sales last year were deliveries, not purchases at their retail locations.

Last year, Staples proposed a merger with Office Depot, but the Obama administration frowned upon the idea. There is some speculation that the Trump administration may see things differently, and an effort to revive that proposal may be in the offing. For now, the local Sonoma location is open for business.