Few business stories are as relatable as the one that sparked the idea for Staples. It was 1985, and a seasoned grocery executive named Tom Stenberg was working on a business plan over the July 4th weekend. Frustratingly, his printer ribbon broke. With local stores closed for the holiday, he was left without a crucial office supply when he needed it most. This simple inconvenience planted a seed: what if there was a single, reliable superstore dedicated to office supplies?
This moment of frustration was the catalyst for a retail revolution. Alongside his former rival, Leo Kahn, Tom Stenberg would go on to co-found Staples, Inc., forever changing how businesses and individuals shop for office essentials. Stenberg transformed a personal annoyance into a multi-billion dollar enterprise, creating a new retail category and becoming a titan of American business.
This post explores the life and career of Tom Stenberg, the visionary entrepreneur who saw a universal need and built an empire to fill it. We’ll look at his early life, the meteoric rise of Staples, and his ventures beyond the office supply world.
The Early Life and Career of Tom Stenberg
Thomas G. Stenberg was born in 1949. His journey into the world of business began after he graduated from Harvard Business School in 1973. He entered the grocery industry, a competitive and fast-paced environment where he honed his skills in retail operations, logistics, and management.
Stenberg quickly made a name for himself, eventually becoming the vice president of sales and merchandising for the Star Market grocery chain. It was here that he not only gained invaluable experience but also met his future business partner, Leo Kahn, who was a competitor at the time. Their professional rivalry would later evolve into one of the most successful collaborations in modern retail history. By the mid-1980s, Stenberg’s sharp business acumen and deep understanding of the retail landscape had prepared him for his next, and most significant, venture.
The Birth of an Office Supply Giant
The broken printer ribbon in 1985 wasn’t just an inconvenience; it was a market gap that Tom Stenberg was uniquely positioned to see. He realized that small businesses and individual consumers were underserved by existing stationery stores, which often had limited stock and high prices. His vision was to create an “office supply supermarket” that offered a vast selection, competitive pricing, and convenient access—a one-stop shop for everything an office might need.
To bring this vision to life, Stenberg reached out to Leo Kahn. Despite being rivals in the grocery business, they shared a mutual respect and a keen eye for opportunity. Kahn was intrigued by the concept, and together they secured the necessary funding to launch their new enterprise.
In May 1986, the very first Staples store opened its doors in Brighton, Massachusetts. The concept was an immediate success. Customers, particularly from small businesses, flocked to the store, drawn by the wide variety of products and discounted prices. The “superstore” model, which had already proven successful in other sectors, was a perfect fit for the office supply market. Staples offered everything from paper clips and pens to computers and office furniture, all under one roof.
Leading Staples to Global Success
With Tom Stenberg as CEO, Staples expanded at an astonishing rate. His leadership was defined by a focus on customer needs and operational efficiency. He understood that the company’s success depended on its ability to offer value and convenience. Under his guidance, Staples went public in 1989, raising capital that fueled even more aggressive growth.
Throughout the 1990s, Staples grew from a regional chain into a national powerhouse and eventually a global leader. The company expanded into Canada and Europe, opening stores and acquiring competitors. Stenberg also embraced e-commerce early on, launching Staples.com in 1998. This move was crucial, as it positioned the company to thrive in the digital age and compete with emerging online retailers.
By the time Tom Stenberg stepped down as CEO in 2002, Staples had grown from a single store into a global corporation with over 1,400 locations and billions of dollars in annual revenue. He had not only built a successful company but had also pioneered an entire retail category.
Life and Ventures After Staples
After leaving his CEO role at Staples, Tom Stenberg didn’t slow down. He transitioned to the world of private equity, joining Highland Capital Partners in 2005 as a Managing General Partner. In this new role, he leveraged his decades of experience to identify and mentor the next generation of entrepreneurs.
At Highland, Stenberg focused on investing in consumer-facing and healthcare companies. His expertise in building and scaling a successful retail business provided invaluable guidance to the startups he worked with. He served on the boards of several companies, helping them navigate the challenges of growth and competition.
Beyond his work in private equity, Stenberg has remained an influential figure in the business world, often sharing his insights on entrepreneurship, leadership, and retail innovation.
FAQs About Tom Stenberg
What is Tom Stenberg known for?
Tom Stenberg is best known as the co-founder and former CEO of Staples, Inc., the office supply retail giant. He is credited with pioneering the concept of the office supply superstore.
How did Tom Stenberg get the idea for Staples?
The idea for Staples came to Stenberg in 1985 when his printer ribbon broke over a holiday weekend and he couldn’t find a store open to buy a replacement. This frustration made him realize there was a need for a dedicated, large-scale retailer for office supplies.
Who did Tom Stenberg partner with to start Staples?
Tom Stenberg partnered with Leo Kahn, a former competitor from the grocery industry, to co-found Staples.
When did the first Staples store open?
The first Staples store opened in Brighton, Massachusetts, in May 1986.
What did Tom Stenberg do after leaving Staples?
After stepping down as CEO of Staples in 2002, Tom Stenberg entered the world of private equity. He joined Highland Capital Partners as a Managing General Partner, where he invested in and mentored emerging companies.
A Legacy of Innovation
Tom Stenberg’s career is a testament to the power of a simple idea executed with brilliance and determination. From a moment of everyday frustration, he built a company that not only became a household name but also fundamentally changed the retail landscape. His story serves as a powerful example for aspiring entrepreneurs, demonstrating how identifying and solving a common problem can lead to extraordinary success.
Stenberg’s vision transformed a fragmented market into a streamlined, customer-focused industry. His legacy lives on not just in the thousands of Staples stores worldwide but in the lessons of his entrepreneurial journey: see a need, create a solution, and never underestimate the power of a well-stocked office.
