Staples To Close Its 140 Stores Due To Rough BusinessChris Middlebrooks (Author) Published Date : Aug 21, 2014 12:14 IST
One of the leading office chain supply company Staples will be closing its 140 stores as they earlier announced for the increasing competition from its online competitor.
According to the company s statement Staples closed its 80 stores in North America where its net income on those closed stores fell down to 20 percent which is 13 cents less per share while $101 million was used on the closed locations.
Meanwhile their rivals Amazon expanding its business also caused Staple to lose its sale to their stores along with the merger of stationary suppliers Office Depot and Office Max also gives a tough competition to the firm.
Staples earlier planned to close its 225 stores in North America which is also their 12 percent of its total stores as they are planning to cut their cost which is close to $500 million.
According to the Chief Executive of Staple Ron Sargent, We have more work to do to stabilize our retail business, and we re taking action to improve customer traffic, reduce expenses and close underperforming stores.
The current downfall of the firm also saw its share price gone down to 2.6 percent which is now trading at $11.32 at the New York stock market while the share price of the company fell to 29 percent this year.
And the sale forecast of its retail business also dropping and the earnings per share excluding some items will be 34 to 39 cents while according to the analysts it was estimated the revenue fall to 3.4 percent.
Staples To Close Its 140 Stores Due To Rough Business