Staples Inc. has announced its decision to shut 225 stores across North America as a decision to cut costs.
Amazon Inc. and other retailers are providing a tough competition for this business depot, where over 50% of their sales are generated from their online store.
Shifting consumer needs are changing the way the market delivers good, Staples is responding to this trend by cutting cost to improve their efficiency.
The company’s stock price took a 15% hit after making the announcement of its decision to close a large sum of their stores. Stocks are now sitting at $11.32 per share from its all time high of $17.30 within the past year.
Staples Inc. has forecasted that their revenue in early 2014 is expected to see a decline compared the first quarter of 2013.
An estimated figure of $500 million is to be saved from the closure of 225 of its stores by the end of next year.