Skip to main content
Report this ad

See also:

Staples to close over 200 stores, what is next for the company?

The morning of Thursday, March 6, 2014, Staples announced that it would be closing 225 of their retail locations across the United States. This move will affect approximately 15% of the Staples brick and mortar locations across the country.

Staples to close over 200 stores

USAToday reports that this move comes as a a result of decreasing in store sales for Q4 2013, and also a desire by the company to increase their focus on online sales. A quick look at the Staples company stock shows that this decision is not sitting well with investors. The stock is currently down over 14% following the announcement.

Staples financials have not been doing well over the last year. Profit for Q4 fell over 10% from the previous year to $5.9 billion. Profit tumbled $200 million to $1.5 billion as well.

This cost cutting initiative by Staples is just the latest in a series of company downsizing. Just yesterday, Radioshack announced that they would be closing over 20% of their stores. It seems that weak sales during the 2013 holiday season are now catching up with many of the nation's retailers.

This decision represents a good opportunity for Staples to potentially reinvent itself and compete with Amazon. The will need to make sure that they deliver a top notch web experience for customers. One advantage that they could use is integrating their website experience with their remaining retail locations. The nation's leading office supply chain has a lot of work to do to achieve growth and satisfy investors. We will have to wait and see if this latest cost cutting move is effective long term.

Report this ad