Staples, Inc. (SPLS), Amazon.com, Inc. (AMZN): Which Companies Make the Grade With Back-to-School Shoppers?

Amazon.com, Inc. (NASDAQ:AMZN) will continue to deliver value and build brand loyalty with its “Amazon Student” program which includes perks like free two-day shipping for six months and exclusive deals and promotions. The company has also established a new education and teacher supplies store that offers lesson books, cubbies, graders and other teacher supplies.

Office Depot Inc (NYSE:ODP) is another company that is incentivizing shoppers during the back to school season with attractive perks. The company recently announced its new rewards program that will offer members the flexibility to personalize its benefits by allowing them to earn points and get rewarded monthly for shopping, connecting and recycling.

Another major development from Office Depot Inc (NYSE:ODP) is the company’s decision to merge with competitor OfficeMax Inc (NYSE:OMX). Now that the merger has been approved, the newly-formed company will focus on cutting costs and increasing sales by closing stores that either are not performing well or are in close proximity to each other. Office Depot Inc (NYSE:ODP) has 1,675 stores worldwide, mostly in the U.S. and Canada. OfficeMax Inc (NYSE:OMX) has approximately 900 stores in the U.S. and Mexico. The new company will combine their online efforts in an attempt to remain competitive in a changing industry largely impacted by the growth of the Internet. With the rise of e-commerce, the Office Depot Inc (NYSE:ODP) and OfficeMax Inc (NYSE:OMX) merger is more about survival than anything else.

Who makes the grade?

The big winner this back to school shopping season will be the Internet. With e-commerce still only making up a small percentage of sales for most businesses and with the rapid growth in recent years, few argue there is tremendous potential online. Those companies best positioned to capitalize on online shoppers will come out of the back to school shopping season ahead.

With big-box discounters like Amazon.com, Inc. (NASDAQ:AMZN) offering the same products as office supply stores but for less money, it is wise for companies like Staples, Office Depot Inc (NYSE:ODP) and OfficeMax Inc (NYSE:OMX) to reduce their store presence and focus on an online strategy. They need to do something to compete with the likes of Amazon.com, Inc. (NASDAQ:AMZN) to make an impact, however.

Kelli Bhattacharjee has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com and Staples. Kelli is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Which Companies Make the Grade With Back-to-School Shoppers? originally appeared on Fool.com is written by Kelli Bhattacharjee -.

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