RetailVision Europe: Retailers Are Bullish On 2008 Outlook

Office products giant Staples is coming off its best year ever in Europe in 2007 and 2008 is also looking "great," said Marcello Castiglione, European director of technology products for Staples.

"We run different concepts in different countries and they are getting more and more mature," said Catiglione. "We are really getting ready for a big next half in Europe and becoming bigger and bigger in Europe."

Castiglione also referred to Staples plans to expand its business by taking over rival Corporate Express NV. The Dutch based Corporate Express on Wednesday rejected an increased 10 percent bid by Staples. The Staples bid, which was summarily rejected by Corporate Express, now values the company at $2.27 billion. Staples now plans to take its case directly to Corporate Express shareholders.

"It's not a public secret that we are now trying to buy one of our competitors," Castiglione said. "I think it will be a great move for both companies, for their shareholders, for our shareholders and also of course for our customers."

"We see things very sunny," he said. "The outlook for us is very good. But we have a little different mix of products." He said Staples customers are coming to the store month to month to buy their office supplies and backs it up with technology products that are sometimes under margin pressure. "Everybody needs supplies," he said.

Castiglione was one of several hundred retailers gathered for the three-day retail conference this week in Rome which brings together leading retailers with hot technology product providers. Retail Vision is owned by ChannelWeb parent Everything Channel, a division of United Business Media.

Nick Graves, senior manager, third party products, Europe for Apple UK Limited, said he is optimistic about 2008. "We're pretty bullish," he said. "We're pretty bullish from a European point of view and from a global perspective. From our point of view we have a strong a proposition as we have ever had. Any derailment is likely to come from outside."

Graves said Apple's multichannel strategy is one of the keys to the company's success supporting both its own retail stores and VARs. "In the IT business there was always a fairly black and white view: you either went direct like Dell or indirect like HP. There wasn't much in between."

"Apple bringing out a multidimensional channel model and making it work was quite novel for the industry," he said. "The reseller channel in the UK has never been stronger." There is also strong growth in Europe around Apple printer VARs who are taking some of the ideas from the Apple retail stores and taking it into new markets.

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