The Next Brick-and-Mortar Sector to Crumble?

Amazon's (AMZN +0.35%) online business will doom office supply stores, right? In this video, Austin Smith makes the Foolish case for Staples (SPLS +0.00%) outperforming competitors such as Office Max (NYSE: OMX) and Office Depot (ODP +0.32%) and holding its own against Amazon.  How might this happen? Staples already sells a ton of stuff online. It has a distribution network that's more advanced than Amazon's, and it has its own brand of office supplies, which gives it a further price advantage. Staples had some restructuring costs, but it is cash flow rich, selling around 10 times normalized earnings, and even pays a 3.3% dividend. On top of all that, it buys back its shares.