Staples Plans to Close 225 Stores

In a recent report, Bloomberg claims Staples, one of the leading U.S. office supplies chains, is planning to close 225 stores, which represent 12% of its North American retail outlets. The move will cut $500 million from operating expenses.

As reported, the company is being challenged by increased threats from online competitors such as Staples said sales in its fiscal first quarter will fall compared to a year earlier, the fifth straight quarterly decline. Also, its profit will be as much as 22 cents a share, trailing analysts’ 27-cent average estimate.

Ron Sargent, Chief Executive Officer, explained, “With nearly half of our sales generated online today, we’re meeting the changing needs of business customers and taking aggressive action to reduce costs and improve efficiency.”

In a recent statement, Staples said apart from the store closings, the annual pretax savings will come from other sectors that include: the supply chain; the sales force; marketing; and information technology (IT) services.

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