Staples 2007 Annual Report Download - page 5

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We are also making great progress in our international businesses outside of Europe, and were particularly
pleased with developments in China and India during 2007.
China continued its strong top-line growth, doubling sales in 2007 to more than $200 million. While the majority of
growth was driven by the delivery business in Beijing, Shanghai and Shenzhen, we expanded our retail presence
with the acquisition of Pei Pei, the largest office products retailer in the Jiangsu province, and also opened the first
two Staples UPS Express stores which combine office supplies and document processing services from Staples
with packaging and international shipping services from UPS. Staples ended the year with 32 stores in China.
We also announced a joint venture with Future Group, establishing a platform for Staples to enter the $10 billion
office products market in India. In addition to providing delivery services, we licensed our brand to Pantaloon
Retail which operates retail stores in India.
We are pleased with the improvements achieved in our International segment during the year, and remain
focused on margin improvement in Europe and rapid growth in Asia and South America.
I am proud of our team for delivering solid results while operating in a tough environment. The ability to offset
unexpected challenges, while growing the top-line and expanding margins, reflects the strength of Staples’ portfolio
of businesses.
Our business remains fundamentally strong and we are improving our offering in North American Retail, continuing
to grow our business in North American Delivery and building a foundation for long term growth in International. We
are driving profitable sales growth across each of our business units, while investing in projects and people to
continue enhancing the customer experience.
In addition to the strong operational performance, I am also proud of our commitment to corporate responsibility.
Staples Soul has become part of our culture and recognizes the close connection between our financial success
and the desire to make a positive impact on our associates, our customers, our communities, our shareholders and
the planet by building awareness of diversity, the environment, community, and ethics. To learn more about Staples
Soul, I encourage you to explore our latest Corporate Social Responsibility report which is highlighted in this annual
report and is available on our website.
Staples EcoEasy also reflects our commitment to corporate responsibility. This new initiative is designed to
highlight how we are making it easy for our customers to make a difference for the environment. With more than
3,000 eco-friendly products in stores and online, our successful ink recycling program, and our recently announced
technology recycling program, we are making rapid progress with this initiative.
Turning to Staples leadership, I would like to thank Gary Crittenden for his many contributions as a member of
Staples’ Board of Directors during the last three years. Gary’s financial expertise and knowledge of the retail
industry added great value during his tenure. I would also like to welcome three new members of our Board of
Directors. Justin King, chief executive of J Sainsbury plc, a leading UK food retailer, brings a wealth of retail
industry knowledge and international experience. Robert Sulentic, group president at CB Richard Ellis Group, Inc.,
a global leader in real estate services, adds superior business acumen and commercial real estate knowledge.
Carol Meyrowitz, president and chief executive officer at The TJX Companies, Inc., the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide, contributes merchandising expertise as well as a strong
background in product sourcing.
Most importantly, I’d like to thank our 76,000 dedicated associates around the globe for delivering solid results
during a challenging year. Our team remains focused on execution, customer service and improving profitability,
moving toward our vision to be the world’s best office products company. I would also like to thank our customers,
suppliers, and shareholders for their continued support.
Ron Sargent
Chairman of the Board and Chief Executive Officer
April 17, 2008