THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, May 10, 1996 TAG: 9605100625
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: Medium: 55 lines
Staples Inc., the Framingham, Mass.-based retailer that pioneered the office-supplies superstore, is considering opening outlets in Hampton Roads.
``We are interested in the area,'' said Jean Papagni, a Staples spokeswoman. ``We're looking at sites, but nothing is finalized.''
The company has been looking at sites in Chesapeake, Virginia Beach, Newport News and Hampton, retail sources said.
If Staples opens stores here, it will join a wave of retailers moving into Hampton Roads. Across the region - and in every retail sector from supermarkets to discount stores - national chains are moving in.
Staples, like other retailers, likes the region's growth and sees ``so much untapped market share,'' Papagni said.
Key to the company's success are markets that have a wealth of small businesses and home offices, she said. Hampton Roads, Papagni said, has plenty of both.
Staples, however, won't find itself alone in the office-supplies arena.
One of its biggest competitors would be OfficeMax Inc., which has seven area stores. Staples also would compete with Office Depot, which wants to open several stores in the region.
Office Depot plans to open stores in Norfolk's Military Crossing shopping center and in Hampton off Mercury Boulevard this summer. It also has been considering sites in Chesapeake's Greenbrier community, Newport News and Virginia Beach, retail sources said.
While OfficeMax will have name recognition in this region, Office Depot thinks it has more clout.
``One advantage we have is that our sales are about the same as both OfficeMax and Staples put together,'' said Gary Schweikhart, an Office Depot spokesman. ``Our buying power is stronger.''
But Staples officials don't sound worried.
``We compete with them in a lot of markets,'' Papagni said. ``We are all competing successfully. There is a lot of growth.''
At least one retail analyst isn't convinced that Hampton Roads is growing fast enough to support the three office-supplies giants.
``A market your size can fit two major (office-supplies) chains - not three,'' said Kenneth M. Gassman Jr., an analyst with Davenport & Co. of Virginia.
Nationwide, Staples has about 450 stores, including those in Northern Virginia, Richmond, Roanoke, Lynchburg and Fredericksburg.
The retailer plans to open 160 stores by the year's end.
To support its expansion, Staples is building a $43 million warehouse and distribution center in Hagerstown, Md. It will employ 700 people and serve 370 stores in the mid-Atlantic, South and Midwest. by CNB