3/05/08

The web now accounts for almost one-third of all revenue at Staples

E-commerce sales for Staples grew at a more moderate rate in 2007, while comparable store sales declined. For the year e-commerce increased 14% to $5.6 billion.

Bill Briggs , Senior Editor

E-commerce sales for Staples Inc. grew at a more moderate rate in 2007, while comparable store sales declined.

For the year, Staples, No. 2 in the Internet Retailer Top 500 Guide, reported web sales of $5.6 billion, an increase of 14.3% over e-commerce revenue of $4.9 billion in 2006. In comparison, Staples grew its annual web sales in 2006 and 2005 by 29% and 27%, respectively.

The web accounted for 29% of total sales in 2007, compared with 27% in 2006.

Overall, Staples posted net income of $995.7 million on sales of $19.37 billion in 2007 vs. net income of $973.7 million on sales of $18.16 billon in 2006. For the fourth quarter, Staples had net income of $333.1 million on revenue of $5.32 billion, compared with net income of $336.5 million on sales of $5.28 billion in the same quarter in 2006.

Comp store sales in 2007 declined by 3% for Staples’ North American locations, but grew by 2% in Europe, the company says. In the fourth quarter North American comparable store sales declined by 6%, while sales in Europe declined 1%.

“We are pleased to deliver profitable growth in what turned out to be a challenging 2007,” says Staples CEO Ron Sargent.

Topics:

business, business finance, Finance, revenue, Staples Inc.

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