Tuesday, July 7th24.4°C
26926
25017

Staples plans to shutter 225 stores by end of 2015 as more customers shop online, sales slide

FRAMINGHAM, Mass. - Staples will close up to 225 stores in North America by the end of next year as it seeks to trim about $500 million in costs annually by 2015.

The nation's largest office-supply retailer said Thursday that nearly half of its sales are now generated online, so it will aggressively cut costs to become more efficient.

Company shares dropped more than 10 per cent before markets opened.

The recession did heavy damage to the industry, which is now under increasing pressure from online retailers as well as discount stores.

There is rapid consolidation under way and rivals Office Depot and OfficeMax just completed a $1.2 billion merger.

But the overhead costs of running 'big box" stores has put companies like Staples under stress.

The closings amount to 10 per cent of all Staples locations. The company has 2,200 stores worldwide, 1,500 of them in the United States.

It is unclear how many jobs will be lost or what locations will be shuttered.

The company did not immediately return a call from The Associated Press early Thursday.

Staples also posted fourth-quarter earnings and sales fell sharply.

The company's earnings nearly tripled, but that is compared to a period when it booked $176.6 million in restructuring charges as it closed stores.

Staples earned $212.4 million, or 33 cents per share, in the quarter that ended Feb. 1. That compares with earnings of $78.1 million, or 12 cents per share, the previous year.

Revenue slumped nearly 11 per cent to $5.87 billion.

Both revenue and profit fell short of Wall Street expectations, as did the company's outlook for this quarter.

Staples expects sales to fall again and it projected earnings of between 17 and 22 cents per share. Analysts that follow the company had been looking for something closer to 27 cents per share.

Staples shares fell $1.35 to $12.05 in premarket trading. That price would set a new 52-week low during regular trading.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14624.50+30.93
S&P CDNX652.83-10.50
DJIA17776.91+93.33
Nasdaq4997.46+5.52
S&P 5002081.34+12.58
CDN Dollar0.7858-0.0005
Gold1151.30-1.10
Oil52.66-0.37
Lumber282.00+0.80
Natural Gas2.706-0.010

 
Okanagan Companies
Pacific Safety0.18+0.01
Knighthawk0.010.00
QHR Technologies Inc1.50-0.02
Cantex0.05+0.02
Anavex Life Sciences0.53+0.01
Metalex Ventures0.065-0.010
Russel Metals22.58+0.19
Copper Mountain Mining1.04-0.05
Colorado Resources0.09+0.01
ReliaBrand Inc0.0065+0.0005
Sunrise Resources Ltd0.03-0.01
Mission Ready Services0.165+0.005
Decisive Dividend Corporation3.00+0.00

 



26594

FEATURED Property
23279697140 Brent Road
4 bedrooms 4 baths
$1,578,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Increase property value

Photo: Thinkstock.comHere are five of the best renovations you can do to your home to increase property value. These five renovations can sometimes have a return on investment five to six times what t...


Active listening

Has this ever happened to you? You had an initial meeting with a prospect. You asked that prospect what seemed to be all the right questions. You had what felt to you like a good conversation, and bas...


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...

_








Member of BC Press Council


25650