Staples 2007 Annual Report Download - page 83

• entry into new geographic markets;
• estimates of the potential markets for our products and services, including the anticipated drivers for future
growth;
• sales and marketing plans;
• the potential growth and levels of profitability of our international operations;
• our assessment of the outcome and financial impact of litigation and other governmental proceedings and the
potential impact of unasserted claims;
• assessment of market risks relating to interest rates and currency rate fluctuations;
• projected improvements to our infrastructure and impact of such improvements on our business and operations;
• assessment of competitors and potential competitors;
• potential mergers, acquisitions or joint ventures, including our proposal to acquire all of the ordinary shares of
Corporate Express NV; and
• assessment of the impact of recent tax legislation and accounting pronouncements, including SFAS Nos. 141(R),
157, 159 and 160 and FIN 48.
In addition, any statements contained in or incorporated by reference into this report that are not statements of
historical fact should be considered forward-looking statements. You can identify these forward-looking statements by
use of the words ‘‘believes,’’ ‘‘expects,’’ ‘‘anticipates,’’ ‘‘plans,’’ ‘‘may,’’ ‘‘will,’’ ‘‘would,’’ ‘‘intends,’’ ‘‘estimates,’’ and other
similar expressions, whether in the negative or affirmative. We cannot guarantee that we actually will achieve the plans,
intentions or expectations disclosed in the forward-looking statements made. There are a number of important risks and
uncertainties that could cause our actual results to differ materially from those indicated by such forward-looking
statements. These risks and uncertainties include, without limitation, those set forth below under the heading ‘‘Risk
Factors.’’ Forward-looking statements, like all statements in this report, speak only as of the date of this report (unless
another date is indicated). We disclaim any obligation to update publicly any forward-looking statements whether as a
result of new information, future events or otherwise.
Item 1A. Risk Factors
Our market is highly competitive and we may not continue to compete successfully.
The office products market is highly competitive. We compete with a variety of local, regional, national and
international retailers, dealers and distributors for customers, associates, locations, products, services, and other
important aspects of our business. In most of our geographic markets, we compete with other high-volume office supply
chains such as Office Depot and OfficeMax, as well as mass merchants such as Wal-Mart, warehouse clubs such as
Costco, computer and electronics superstores such as Best Buy, copy and print businesses such as FedEx Kinko’s, ink
cartridge specialty stores, and other discount retailers. Our retail stores and delivery operations also compete with
numerous mail order firms, contract stationer businesses, electronic commerce distributors, regional and local dealers,
and direct manufacturers.
We strive to differentiate ourselves from our competitors in part by executing our brand promise; we make buying
office products easy. This involves, among other things, offering our customers a broad selection of products, convenient
store locations, and reliable and fast order delivery. Many of our competitors, however, have increased their presence in
our markets in recent years by expanding their assortment of office products and services, opening new stores near our
existing stores, and offering direct delivery of office products. Some of our current and potential competitors are larger
than we are and have substantially greater financial resources that may be devoted to sourcing, promoting and selling
their products. If we fail to execute on our brand promise or are otherwise unable to differentiate ourselves from our
competitors, we may be unable to attract and retain customers.
Economic conditions may cause a decline in business and consumer spending.
Our operating results are impacted by the health of the North American, European, Asian and South American
economies. Our business and financial performance may be adversely affected by current and future economic
conditions that cause a decline in business and consumer spending, including a reduction in the availability of credit,
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