Staples Plans to Close 140 Stores to Focus on Ecommerce

Content Manager

Staples announced it would close approximately 140 of its North American stores in 2014, according to its Q2 earnings call.

“As customers shift online, we are taking aggressive action to right-size our retail footprint,” the company said in a prepared statement. “We are committed to providing great service and every product businesses need whether it’s in store, online or through mobile. We don’t have additional details to share on specific locations or timing.”

Staples already closed 80 stores during the second quarter which brings its total number of store closures to 96 for the first half of 2014. The company expects to close 40 stores in the latter half of the year.

Staples.com saw an 8% sales growth in Q2 driven by increased business customer acquisition, improved customer conversion driven by improvements to mobile and desktop websites, and expanded assortment beyond office supplies.

The company reported double-digit growth from in-store web kiosks, which now accounts for more than 5% of its U.S. retail sales mix, and enhanced its omnichannel customer experience with the launch of its Buy Online, Pick Up in Store service.

Staples added 250,000 products to its ecommerce website in the quarter, including furniture and teaching and education tools and hardware categories, bringing the total SKUs on Staples.com to more than one million.

For the second quarter, Staples’ net income fell to $81.9 million, or 13 cents per share, from $102.5 million, or 16 cents per share, a year ago. Sales declined 2% to $5.2 billion, with about half of the drop due to foreign exchange rates and store closings in North America.

 

 

 

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.