Staples to Combine Catalog, Internet Divisions

Framingham, MA—In a cost-cutting effort, office supplies retailer Staples, which operates the Quill Corp. catalog, plans to combine its small-business and catalog units with its e-commerce division, Staples expects to broaden its client base while cutting redundant operational and administrative costs; it also has curtailed plans, announced in September, to spin off with an initial public offering. Instead, Staples will convert stock into Staples common stock.

The catalog/Internet unit will combine merchandising, marketing, and customer support teams. The move was spurred by the company’s 21% drop in fourth-quarter operating profit, although revenue increased five-fold for the company’s fiscal year ended Feb. 3. president Jeanne Lewis will serve as president of Quill as well.