Staples to Shut 225 Stores, Seeks $500 Million in Cost Cuts [View all]
Source: Bloomberg
Staples Inc., the largest office-supplies chain, will close as many as 225 stores in North America and reduce costs by as much as $500 million by the end of 2015, as it forecast sales to drop for a fifth consecutive quarter.
The savings are expected to come from supply chain, retail store closures and measures including “labor optimization, non-product related costs, IT hardware and services, marketing, sales force and customer service,” the Framingham, Massachusetts-based company said in a statement today.
Staples is facing increased competition from online retailers including Amazon.com Inc. Revenue in its fiscal first quarter will fall from a year earlier, excluding any potential impact from its restructuring plan, the retailer said today without providing a projection.
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"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,” Chief Executive Officer Ron Sargent said in the statement.
Read more: http://mobile.bloomberg.com/news/2014-03-06/staples-to-shut-as-many-as-225-stores-cut-costs-by-500-million.html
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