The Stanly News and Press (Albemarle, NC)

State & National News

March 6, 2014

Staples to close 225 stores as online competition hurts sales

Thursday, March 6, 2014 — Staples Inc., the largest U.S. office-supplies chain, will close as many as 12 percent of its North American stores and cut as much as $500 million in costs as online competition continues to hurt sales.

The annual pretax savings, which the company expects to achieve by the end of 2015, will come from areas including the supply chain, sales force, marketing and information-technology services, in addition to the store closings, the Framingham, Mass.-based company said in a statement Thursday.

The retailer is facing increased threats from Internet-based rivals such as Amazon.com, a challenge that spurred Office Depot to merge with OfficeMax last year. Staples said sales in its fiscal first quarter will fall from a year earlier, the fifth straight quarterly decline, and profit will be as much as 22 cents a share, trailing analysts' 27-cent average estimate.

Staples' sales slowdown "reflects both tough industry conditions and underperformance" by the chain, Denise Chai, an analyst with Bank of America in New York, wrote in a note to clients Thursday.

Staples shuttered 42 stores in North America last year, ending 2013 with 1,846 in the region. The plan announced Thursday calls for as many as 225 closings. Kirk Saville, a spokesman for Staples, didn't immediately respond to voicemails and an email seeking comment on how many jobs will be eliminated by the cost-cutting plan.

"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.

Fourth-quarter sales at stores open at least a year fell 7 percent, while sales from Staples.com gained 10 percent, the company said Thursday.

Staples joins electronics retailer RadioShack Corp. in trying to overhaul its business by closing stores in the face of increasing competition from e-commerce rivals. RadioShack announced plans March 4 to close about a fifth of its stores after fourth-quarter sales trailed estimates.

Staples' fourth-quarter net income more than doubled to $212.4 million, or 33 cents a share, from $78.1 million, or 12 cents, a year earlier.

1
Text Only
State & National News
  • linda-ronstadt.jpg Obama had crush on First Lady of Rock

    Linda Ronstadt remained composed as she walked up to claim her National Medal of Arts at a White House ceremony Monday afternoon.

    July 29, 2014 1 Photo

  • Brother sues W.Va. senator over business loan

    FAIRMONT, W. Va. - U.S. Sen. Joe Manchin's brother claims he's owed $1.7 million that he loaned to keep a family carpet out of bankruptcy in the 1980s.

    July 28, 2014

  • CATS-DOGS281.jpg Where cats are more popular than dogs in the U.S.-and all over the world

    We all know there are only two types of people in the world: cat people and dog people. But data from market research firm Euromonitor suggest that these differences extend beyond individual preferences and to the realm of geopolitics: it turns out there are cat countries and dog countries, too.

    July 28, 2014 1 Photo

  • WORLD NEWS: Fast food comes to standstill in China

    BEIJING - The shortage of meat is the result of China's latest food scandal, in which a Shanghai supplier allegedly tackled the problem of expired meat by putting it in new packaging and shipping it to fast-food restaurants around the country

    July 28, 2014

  • Facebook continues moneymaking trend

    WASHINGTON - Facebook seems to have figured out - for now at least - the holy grail for all media right now: how to make money selling mobile ads.

    July 25, 2014

  • Arizona's prolonged lethal injection is fourth in U.S. this year

    NEW YORK - Arizona's execution of double-murderer Joseph Wood marked the fourth time this year that a state failed to dispatch a convict efficiently, according to the Constitution Project, a bipartisan legal group.

    July 25, 2014

  • N.C. Energy Policy Council Long Range Energy Generation and Renewable Energy Committee to meet

    RALEIGH – The North Carolina Energy Policy Council’s Long Range Energy Generation and Renewable Energy Committee will meet via conference call at 9 a.m. July 31.

    July 24, 2014

  • N.C. State University Turfgrass Field Day set for Aug. 13

    N.C. State University’s annual Turfgrass Field Day will be held in Raleigh at the Lake Wheeler Turfgrass Research Lab, Aug. 13, 8:30 a.m. - 2 p.m. One of the largest events of its kind in the country, the field day offers the industry and general public a chance to view the Turfgrass Program’s ongoing research trials and speak directly with N.C. State faculty and staff.

    July 24, 2014

  • NCSU Study: Urban Heat Boosts Some Pest Populations 200-Fold, Killing Red Maples

                New research from North Carolina State University shows that urban “heat islands” are slowly killing red maples in the southeastern United States. One factor is that researchers have found warmer temperatures increase the number of young produced by the gloomy scale insect – a significant tree pest – by 300 percent, which in turn leads to 200 times more adult gloomy scales on urban trees.

    July 23, 2014

  • An oncologist uses scorpion venom to locate cancer cells

    Olson, a pediatric oncologist and research scientist in Seattle, has developed a compound he calls Tumor Paint. When injected into a cancer patient, it seems to light up all the malignant cells so surgeons can easily locate and excise them.

    July 22, 2014

House Ads
Seasonal Content