Office supply retailer Staples, Inc. (SPLS) late Monday announced a joint venture with online retail superpower Amazon.com (AMZN) in which Staples will install so-called “Amazon Lockers” in its U.S.-based locations.
The locker service allows Amazon.com customers to pick up items they order online in physical locations. The service is designed to reduce waiting times associated with missed deliveries.
Amazon already has the lockers installed in several grocery, drug, and convenience stores around the country. The company pays a small service fee to retailers that install the lockers in their stores.
Since Staples sells many of the same products offered on Amazon.com, including Amazon’s Kindle Fire tablet, the value of the partnership from Staples’ viewpoint is questionable. The company declined to comment any further on the move.
Staples shares posted small gains in premarket trading Tuesday.
The Bottom Line
Shares of Staples (SPLS) have a 3.80% dividend yield, based on last night’s closing stock price of $11.57. The stock has technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $13-$13.50 price levels.
Staples, Inc. (SPLS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars. Amazon.com does not currently pay a dividend.