Upwardly Mobile Stationery

It's a brutal market, so why does Staples think it's a good time to go upscale with office supplies?

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March 6, 2008 at 5:00 AM UTC

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On one side of the Staples in Needham, Mass., is the office-supply chain's past. Plain manila folders, stacked in generic blue boxes, are $6.29 for 100. Six aisles away, on the other side of the store, lies what Staples (SPLS) hopes is its future: A dozen file folders, made of thicker stock and decorated with black-and-yellow stripes, are displayed on a faux mahogany table, like sweaters at J. Crew (JCG). They don't have price tags. Instead, a discreet sign on the table reads $6.99 for a dozen.

Staples is trying to take mundane office supplies upscale. Inspired by high-end stationery chains such as Crane & Co. and Papyrus, a new private-label brand, dubbed "M by Staples," features spiffy leather journals, several lines of stationery, business card holders, and the fashion-forward file folders. Coming soon: haute couture paper clips. Resembling barrettes, they will sell in packages of 30 for $5.99. The regular ones cost $1.99—for 1,000.