Staples says it will close 225 stores as it tries to move to an online retailer
The office supply retailer reported that growing online sales will enable the company to close up to 225 stores by the end of 2015 and improve its profit outlook.
The Framington, Massachusetts retailer reported earnings last week, with sales down 10.6 percent for the year, though discounting the 53rd week it had in 2012, sales were down a more modest 3.8 percent.
“A year ago, we announced a plan to fundamentally reinvent our company,” said Ron Sargent, Staples’ chairman and chief executive officer. “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 said closing 225 stores will result in a cost savings of approximately $500 million by the end of 2015.
Despite growing online sales, the company forecast that sales for Q1 of 2014 would remain below the prior year levels.