Staples Signs Web Link Deal With Yahoo

Staples Inc., the world’s largest operator of office product superstores, jumped on the Internet bandwagon with a deal that links its Web site to Yahoo’s search engine. The one-year agreement gives the office supplier prominent placement on Santa Clara, Calif.-based Yahoo’s search engine and will direct Yahoo visitors to the Staples.com Web site when they type key words such as “inkjet cartridge” or the names of other office supplies. News of the pact helped push Westborough, Mass.-based Staples’ stock up $1.38 to close at $35.75 on Nasdaq. Yahoo rose $3.50 to $176.75, also on Nasdaq. Staples executives said the time was ripe to get a piece of the action, but some analysts were skeptical about how much the Internet can boost the company’s sales. “The Internet isn’t that big a deal for most retailers, but it is a little more important for office products because companies are more likely to order supplies via the Internet,” said Donald Spindel of A.G. Edwards.