The nations largest office supply store Staples is closing more than 225 stores across the country as sales continue to drop. By 2015 Staples plans to close the stores and cut costs by $500 million.
Staples has seen sales drop for the fifth consecutive quarter, as the office supply stores faces more and more competition from online retailers like Amazon.
Chief Executive Officer, for the company, Ron Sargent said, “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.”
The company saw it shares fall 10 percent to $12.06 in early trading yesterday morning and by close of business the shares had fallen to 0.5 percent to $13.40.
Stapled Shut! The office supply Store Staples Closing 225 Stores
The Massachusetts-based company said, it will save money by cutting out the supply chain and moving more towards online sales, retail store shutdowns and measures including labor optimization, non-product related costs, IT hardware and services, marketing, sales force and customer service.
A representative spokesperson for the company, Kirk Saville, has not commented on how many jobs will be eliminated due to the cutbacks.
Staple Inc. is the largest office supply store in North America and has more than 2000 stores worldwide. The store was co-founded by Leo Kahn and Thomas G. Stemberg, in 1986. The retail store focuses on making things easier around the office place. Through its world-class retail, online and delivery capabilities, Staples lets customers shop however and whenever they want, whether it’s in store, online or on mobile devices. Staples offers products every category for the office place such as technology, facilities and break room, furniture, safety and medical, as well as Copy & Print and Staples EasyTechsm services.
Staples has been making it easy for businesses for 27 years with thousands of associates worldwide.
Stapled Shut! The office supply Store Staples Closing 225 Stores.