Staples Continues Closings, Will Shutter 140 Stores by End of Year
In March, Staples announced it would close 225 stores by the middle of 2015 in an effort to save up to $500 million in annual costs. As part of the plan, the company said it will shutter 140 stores by the end of 2014. The closures will join the 80 locations Staples already shuttered in the fiscal second quarter of this year.
According to the Boston Globe, Staples' $5.22 billion in second-quarter revenue beat analysts' projections, but still fell 1.8 percent. It was the first time in five quarters that the company beat estimates, reported 24/7 Wall St., though Staples forecasted a further decline in sales for the third quarter of 2014.
"We're accelerating growth in our delivery businesses as customers turn to Staples for more products beyond office supplies," Staples' CEO Ron Sargent said in a statement [PDF]. "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."