Staples 2012 Annual Report Download - page 4
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At the same time, we’re funding our growth by reshaping our business and reducing costs. During
2012, we went through a rigorous cost reduction analysis and built a plan to achieve $250 million
in annual pre-tax savings by 2015. Our biggest opportunities to drive savings are in areas like product
costs, indirect procurement, store operations and supply chain, and we’ve already started to
aggressively go after these opportunities. We made progress on our plan to reduce retail square
footage in North America by 15 percent. We restructured our European operations in 2012 by
closing 15 percent of our stores, significantly reducing headcount, and announcing plans to sell
our European Printings Systems business. We also successfully raised $1 billion of debt at very
favorable interest rates and used the proceeds to pay off over $600 million of high-interest debt.
Our vision is powerful because it’s based on things that Staples is already doing well. We have
deep relationships with more than 10 million business customers who trust the Staples brand.
We have significant buying power and decades of product expertise, including our Staples brand
offering. We have world-class delivery capabilities that provide next-day delivery to 98 percent of
North America, an expansive retail network, and a strong online presence. We have healthy cash
flows to invest in growth. And most importantly, we have a world-class team of talented associates
dedicated to serving our customers. I’m looking forward to 2013, and I’m energized by the
opportunities ahead of us.
In closing, I would like to thank our customers, suppliers, and other stakeholders for their continued
trust in Staples. I’d also like to thank our Board of Directors for its strong leadership and support
and to recognize Mike Miles, who recently left our company after 10 years of outstanding service.
I’m also pleased that we are nominating Raul Vazquez to join our Board of Directors. Raul, Chief
Executive Officer of Progreso Financiero, previously served as the head of global eCommerce at
Walmart and brings a wealth of online and retail industry knowledge. Finally, I’d like to thank our
associates for their hard work and commitment during 2012 and for going above and beyond to
meet the needs of our customers every day.
Ron Sargent
Chairman of the Board and Chief Executive Officer
April 2013