<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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14a-6(e)(2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to 240.14a-11(c) or 240.14a-12
Staples, Inc.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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STAPLES, INC.
- --------------------------------------------------------------------------
-----------------------
| - Industry History |
-----------------------
- Staples/Office Depot Merger
- North American Superstore Potential
- Additional Growth Opportunities
- Revenue Growth Drivers
- Profit Leverage Potential
STAPLES -- HISTORICAL PERSPECTIVE
- --------------------------------------------------------------------------
- May 1986, Staples Opened the First Office Products Superstore
- October 1986, Office Depot Opened the Second Office Products
Superstore
Page 1
<PAGE>
OVER THE YEARS
- --------------------------------------------------------------------------
Players Have Come and Gone . . .
1986 1988 1995
---- ---- ----
- Staples 2 22 443
- Office Depot 3 26 501
- Office Max 14 457
- Office America 5
- WORKplace 7
- HQ Office Supplies Workhouse
- Office Club 15
- HQ International
- BizMart 10
- Office Square 2
- Office World 4
- OW Office Warehouse 2
- National Office Warehouse 2
- Office Place 6
- Office Station 2
- Office Shop Warehouse 6
- Office Stop
- OP Club 8
--- --- -----
5 129 1,401
THREE CHAINS EMERGED
- --------------------------------------------------------------------------
# OF LOCATIONS
--------------
1995 1996E % GROWTH
---- ----- --------
- Staples 443 559 26%
- Office Depot 501 571 14%
- Office Max 457 552 21%
Page 2
<PAGE>
ENORMOUS SUCCESS
- --------------------------------------------------------------------------
- Companies Which Achieved $3 Billion in Annual Sales in Less
than 10 Years:
Compaq Computer Corporation
Dell Computer Corporation
Gateway 2000, Inc.
-------------------------
| Office Depot Inc. |
| Staples, Inc. |
-------------------------
Sun Microsystems, Inc.
STAPLES, INC.
- --------------------------------------------------------------------------
- Industry History
----------------------------------
| - Staples Office Depot Merger |
----------------------------------
- North American Superstore Potential
- Additional Growth Opportunities
- Revenue Growth Drivers
- Profit Leverage Potential
Page 3
<PAGE>
CURRENT CORPORATE STRUCTURE
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Staples, Inc. Office Depot, Inc.
------------- ------------------
<S> <C> <C>
NA Retail Staples, The Office Office Depot
- Consumers Superstore Office Place
- Small Office/Home Office Staples Express
Business Depot
Bureau En Gros
Mail Order & Contract
Stationers
- Small, medium & large Staples Direct Office Depot Direct
businesses Staples Business Advantage Business Services
Staples National Advantage
International
- Retail UK France Poland
- Mail Order Germany Mexico Israel
Thailand Columbia
</TABLE>
HIGHLY COMPLEMENTARY FIT
- --------------------------------------------------------------------------
- "Best of Both"
- Management teams
- Operating practices
- Customer service practices
- Systems
- Great Geographic Fit
Page 4
<PAGE>
STAPLES & OFFICE DEPOT LOCATIONS
- --------------------------------------------------------------------------
[Map of the United States and Canada indicating store locations
of Staples and Office Depot appears here.]
MAKING TWO INDUSTRY LEADERS . . .
- --------------------------------------------------------------------------
-------------------------------- ----------------------------------
| [Staples Logo] | | [Office Depot Logo] |
| | | |
| | | |
| - 560+ Retail Stores | | - 570+ Retail Stores |
| | | |
| - Solid Contract/Mail Order | | - Solid Contract/Mail Order |
| | | |
| - Central distribution | | - Best sales productivity per |
| | | store |
| - Youngest store base | | |
| | | - Advanced Information Systems |
| - Strong customer service | | |
| scores | | - Strong geographical |
| | | diversification |
| - Experienced/deep | | |
| management team | | - Experienced/management team |
| | | |
-------------------------------- ----------------------------------
Page 5
<PAGE>
. . . EVEN GREATER
- --------------------------------------------------------------------------
Staples / Office Depot
----------------------
- National Scale and Scope
- Strong Market Presence
- Best of Both Practices/Systems
- Strong Management Track Records
- Enormous Synergy Potential
- Significant Opportunities for Growth
MERGER STATUS
- --------------------------------------------------------------------------
- FTC Second Request
- SEC Documents Filed
- Integration Planning
Page 6
<PAGE>
ORGANIZING TO INTEGRATE
- --------------------------------------------------------------------------
[Organizational Chart appears here.]
INTEGRATION PLANS
- --------------------------------------------------------------------------
- Eighteen Months to Two Year Time Frame
- 1,000+ Store Conversions
- Optimum Hybrid Distribution System
- Closure of Some Overlapping Facilities
- Net addition of 50+ stores in 1997
Page 7
<PAGE>
STAPLES, INC.
- --------------------------------------------------------------------------
- Industry History
- Staples/Office Depot Merger
-------------------------------------------
| - North American Superstore Potential |
-------------------------------------------
- Additional Growth Opportunities
- Revenue Growth Drivers
- Profit Leverage Potential
LARGE ATTRACTIVE INDUSTRY
- --------------------------------------------------------------------------
[Graph of 1996 Total North American - Total industry growing
Office Products Market, which at 10+%
indicates that such market is a - 7-8% core product growth
$185 billion market, appears here.]
- Target customer segments
growing even faster
- SOHO growth 4X large
company growth
- 50% of homes to have
offices by 2000
Page 8
<PAGE>
INDUSTRY STILL FRAGMENTED
- --------------------------------------------------------------------------
Graph showing the following industry information appears here:
Retail Contract Mail Order VARs/Other
------ -------- ---------- ----------
Total Size: $81 bil. $24 bil. $34 bil. $46 bil.
% SPLS/ODP 10% 6% 5% 0%
% Top 4 Other: 11% 27% 5% 0%
% Other: 79% 67% 90% 100%
POTENTIAL FOR 3,000 SUPERSTORES IN NA
- --------------------------------------------------------------------------
Graph showing the following Office Product Superstore information
for NA appears here:
- NA market currently
Year: Office Product Superstores: 50+% saturated
----- --------------------------- - Based on demonstrated
share performance
1995: 1,411
2000: 3,000 - 5+ Years of unit growth
remaining
Page 9
<PAGE>
STAPLES/OFFICE DEPOT COMBINED STORE OPENINGS
- --------------------------------------------------------------------------
Graph showing the following information appears here:
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
Stores open at year-end 944 1,135 1,200 1,375 1,550
Store openings during year: 174 190 150 200 200
- --------------------------------------------------------------------------
[Staples storefront photo]
Page 10
<PAGE>
CHICAGO EXAMPLE
- --------------------------------------------------------------------------
Graph showing the following information appears here:
Number of Stores
----------------
Current Staples 1
Current ODP 18
Current OMX 32
Remaining Potential 45
STAPLES, INC.
- --------------------------------------------------------------------------
- Industry History
- Staples/Office Depot Merger
- North American Superstore Potential
--------------------------------------
| - Additional Growth Opportunities |
--------------------------------------
- Revenue Growth Drivers
- Profit Leverage Potential
Page 11
<PAGE>
NEW GROWTH OPPORTUNITIES
- --------------------------------------------------------------------------
- Focus is Critical for Merger Success
- People
- Resources
- Products/channels
- Concepts Under Review
- Furniture at work
- Images
- Mega-stores
GLOBAL GROWTH PLATFORMS
- --------------------------------------------------------------------------
- U.S.
- Canada
- U.K. - JV
- Germany - JV
[World Map] - Mexico - JV
- France - JV
- Japan - JV
- Thailand - JV
- Columbia - Lic.
- Israel - Lic.
- Poland - Lic.
Page 12
<PAGE>
INTERNATIONAL
- --------------------------------------------------------------------------
- Focus on Profitability in UK and Germany
- Retail
- Delivery
- Evaluate/Prioritize the New Market
Opportunities
- Europe
- Far East
- Latin America
- Prefer Majority Ownership
STAPLES, INC.
- --------------------------------------------------------------------------
- Industry History
- Staples/Office Depot Merger
- North American Superstore Potential
- Additional Growth Opportunities
-----------------------------
| - Revenue Growth Drivers |
-----------------------------
- Profit Leverage Potential
Page 13
<PAGE>
INVESTING IN TOP LINE GROWTH
- --------------------------------------------------------------------------
- Customer Service/Selling Focus
- Increased Marketing Spend
- Store Remodel Program
- Improved In-Stock
- Expanded Product Offerings
ELEVEN QUARTERS OF DOUBLE DIGIT COMPS
- --------------------------------------------------------------------------
Q1 Q2 Q3 Q4
---- ---- ---- ----
1994 17% 16% 27% 31%
1995 23% 18% 22% 17%
1996 18% 16% 12%
Page 14
<PAGE>
CURRENT COMP SALES CHALLENGES
- --------------------------------------------------------------------------
- Paper Pricing
- Personal Computers
STAPLES, INC.
- --------------------------------------------------------------------------
- Industry History
- Staples/Office Depot Merger
- North American Superstore Potential
- Additional Growth Opportunities
- Revenue Growth Drivers
--------------------------------
| - Profit Leverage Potential |
--------------------------------
Page 15
<PAGE>
ENORMOUS SYNERGY POTENTIAL
- --------------------------------------------------------------------------
- Purchasing
- Distribution
- Marketing and Advertising
- General and Administrative
- Shared Best Practices
ENORMOUS SYNERGY POTENTIAL
- --------------------------------------------------------------------------
Year 1: $ 91 million
Year 2: $145 million
Year 3: $210 million
Page 16
<PAGE>
COMPONENTS OF SYNERGY POTENTIAL
- --------------------------------------------------------------------------
Key Drivers
-----------
- Supplier partnerships
Product Costs - Best practices
- More direct sourcing
---------------------------------------------------------
| |
| Year 1 Year 2 Year 3 |
| ------ ------ ------ |
| |
| Synergy ($ mil.) $31 $41 $76 |
| |
---------------------------------------------------------
VENDOR CONSOLIDATION
- --------------------------------------------------------------------------
Office
Staples Depot
------- -------
Envelopes Ampad Westvaco
Mail and Ship Manco 3M
Binders Acco Avery
Page 17
<PAGE>
PRODUCT COST SYNERGIES -- FREIGHT EXAMPLE
- --------------------------------------------------------------------------
- Central Distribution Provides Significant
Benefits/Opportunities
- New facilities can receive product via rail car
- Freight Savings on Only 2 SKUs (copy paper) Will
BE $1.2 million in 1997 (just on Staples volume)
------------
COMPONENTS OF SYNERGY POTENTIAL
- --------------------------------------------------------------------------
Key Drivers
-----------
- Eliminate redundancy
Advertising/Marketing - National scale
- Better buying
---------------------------------------------------------
| |
| Year 1 Year 2 Year 3 |
| ------ ------ ------ |
| |
| Synergy ($ mil.) $50 $70 $85 |
| |
---------------------------------------------------------
Page 18
<PAGE>
ADVERTISING/MARKETING SYNERGY -- L.A. EXAMPLE
- --------------------------------------------------------------------------
Graph showing the following information appears here:
- Potential savings of 40%
in common markets
Pre-merger: $26 million - Despite increasing
spend vs. single company
Post-merger: $15 million
COMPONENTS OF SYNERGY POTENTIAL
- --------------------------------------------------------------------------
Key Drivers
-----------
General & Administrative - Non-product vendor partnerships
- Best practices
- Slower headcount growth
---------------------------------------------------------
| |
| Year 1 Year 2 Year 3 |
| ------ ------ ------ |
| |
| Synergy ($ mil.) $10 $35 $50 |
| |
---------------------------------------------------------
Page 19
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NON-PRODUCT SYNERGIES
- --------------------------------------------------------------------------
- Telecommunications
- Health Care
- Risk Management
- Travel
- Credit Card Processing/Bank Charges
- Delivery Services
- Payroll
SUMMARY
- --------------------------------------------------------------------------
- Substantive Benefits for All Stakeholders
- Customers: more savings
- Associates: more opportunities
- Vendors: partnership opportunities
- Shareholders: growth and accretion
- Two Highly Complementary Companies
- Enormous Synergy Potential
- Significant Growth Opportunities Remain
Page 20
