Monday Morning Quarterback

 

When you think of Staples, chances are you think of a big box retailer that sells paper, pens, ink cartridges and other office supplies. But the managers behind Business Interiors by Staples want you to know they sell a heck of a lot of office furniture as well. As one of its main furniture suppliers, Allsteel is one company that understands the Business Interiors by Staples business. And a growing number of office furniture dealers are butting heads with Business Interiors by Staples over major projects all around the country. Get used to it. Business Interiors by Staples is one of a handful of uber-dealers that has the clout to compete wherever it goes. Business Interiors by Staples has 30-40 major office furniture showrooms in cities across the country and 182 facilities all together. It is a massive organization that employs well over 500.

 

Business Interiors by Staples is worth watching for two main reasons: It can leverage its Staples brand and buying power and it is spread across the country, competing for jobs, in many cases, against much larger opponents (including other Allsteel dealers). Business Interiors by Staples is winning jobs and surprising a lot of smaller mom-and-pop dealers when the bidding process begins.

 

Business Interiors by Staples was born out of Staples acquisition of Corporate Express in 2008 and was formerly known as Corporate Express Business Interiors. Corporate Express Business Interiors was formed through multiple mergers and acquisitions in the 1980s and 1990s. Business Interiors by Staples is part of the Staples Business Solutions group.

 

The integration of Corporate Express into Staples has gone well, said John Michael, vice president and general manager of Business Interiors by Staples. "The impact on customers has been very positive," he said. "There has not been a lot of fallout or defection. I think we've kept customer satisfaction at a very high level. Anytime you join two global companies it is full of challenges in terms of cultural and market strategies integration."

 

According to the company's website, Staples Advantage is the business-to-business division of Staples, working with companies of 20 or more employees to develop customized programs with specialized pricing, dedicated account management, and a complete assortment of products and services at a low total delivered cost. In addition to a complete selection of office products, Staples Advantage offers: Business Interiors by Staples, Staples Technology Solutions, Staples Facility Solutions, Staples Print Solutions and Staples Promotional Products.

 

What gives Business Interiors by Staples its real power is its connections to its parent company. Staples is the world's largest office products company with 2009 sales of $24 billion - triple the size of the entire office furniture industry. The company has 91,000 employees and offices in 26 countries throughout North and South America, Europe, Asia and Australia. The company does not break out sales of Business Interiors by Staples.

 

Staples might be known for its inexpensive office supplies, but the furniture it sells through Business Interiors by Staples is not the cheap Asian-made chairs and desks found in its retail stores. The division has sold Allsteel since 2006. Its customers include major corporations, hospitals and schools.

 

"That's not where we live," Michael said, refuting the misconception that Business Interiors by Staples sells cheap furniture. "We do have the benefit of being part of one of strongest brands anywhere. At Business Interiors by Staples, our association with Staples is a double-edge sword. People know us as a retailer and for our office products. But Business Interiors by Staples is very much aligned with Allsteel as our primary contract line. It is quality furniture."

 

Business Interiors by Staples represents about 250 manufacturers. In addition to Allsteel, the division carries the rest of the HNI Corp. portfolio and has strong relationships with Global and National. "We are continuously evaluating our portfolio and trying to fill in the gaps. We want to commit to the people (manufacturers) that commit to us. We want to establish long term partnerships and direct our people to use the products of those who we parter with."

 

Like every office furniture dealer, Business Interiors by Staples has worked to expand into the healthcare, government and educational furniture markets. Unlike traditional office furniture dealers, Business Interiors by Staples has a virtually automatic in with Fortune 1000 accounts because of its office supplies connection. The same holds true when Business Interiors by Staples adds a new customer - it can pass along contact information to its division that handles corporate office supply business. It is a powerful synergy. The connection also helps Business Interiors by Staples excel at large projects as well as small, transactional business.

 

Business Interiors by Staples does run up against traditional Allsteel dealers in various markets across the country. Michael said it treats them the same way it would any competitor, regardless of manufacturer affiliation. Part of the appeal of working with Business Interiors by Staples is its size and reach, he said.

 

"Our approach and part of our value proposition is that we are a nationwide dealer network all owned by the same entity," Michael said. "When we are talking to our larger customers who might have offices in multiple cities they know they will get the same service and same network across the country. When we talk to our customers about consistency, it is not a word they normally use when talking about office furniture dealers.

 

"(The way the office furniture dealer network is organized) makes the process more onerous with customers than it needs to be. We like to think of ourselves as the local dealer that happens to be everywhere."