FRAMINGHAM, MA-Though Staples posted $4.3 billion in sales in the second quarter, an 11% increase from Q2 2006, company executives said, many times during a conference call Tuesday, that they are not happy with a 2% decrease in North American Retail same store sales during the recent quarter. The company’s delivery services branch increased sales by 16% versus the same time last year, and international sales increased 18%, showing that US consumers and small business owners are still nervous about the economy, the Stables executives said. However, those at the firm’s helm said they are confident of the company’s abilities to hold down costs and bring in more customers, and still expect to open 100 new stores in the US this year.

“Last quarter I said I was cautious about the consumer, and this quarter I would say I’m probably a bit worried,” said Ron Sargent, chairman and CEO, during the call. “I would certainly say that consumer spending seems to be slowing. Costs are up, housing is down, and throughout retail, sales are soft. Consumers are buying less stuff because they’re nervous about the future. On the other hand, the business sector seems pretty healthy, job growth is okay. It’s more of a consumer slowdown than a business slowdown.”

Staples opened 23 new stores in the US in the second quarter, seven new stores in China, five new stores in Canada, one store in Portugal and closed a store in the UK. The company now operates 1,962 stores worldwide. “We now total 24 stores in China,” Sargent said. “We hope to begin retail operations in India this year.”

The company expects to see same store sales stay flat, or even decrease, in the third quarter, and low double-digit sales growth. For fiscal year 2007, Staples anticipates low double-digit sales growth for the total company, and flat same-store sales for North American Retail.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.