Another electronics chain decides to shut down some stores to save costs
Staples recently announced that it's going to close down 225 of its retail stores across the United States by the end of next year. The closures are intended to cust costs as Staples attempts to give itself a makeover. It's also in response to a growing number of products being sold on the company's website -- Staples ended 2013 with over 500,000 products on Staples.com versus 100,000 at the beginning of the year.
"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."
Shutting down 225 stores is part of a overall cost-cutting program intended to save the company around $500 million. Staples currently has over 1,500 stores in the U.S., and over 2,200 around the world.
The announcement comes just days after RadioShack announced plans of its own to shutter 1,100 "underperforming" retail locations in the U.S., as it too tries to reinvent its image.