Posted on 03/06/2014 4:24:24 AM PST by Red in Blue PA
(Reuters) - Staples Inc (SPLS), the largest U.S. office supplies retailer, forecast a fall in current-quarter sales as it loses customers to mass market chains and e-retailers, and the company said it would close up to 225 stores in North America by 2015.
Staples' shares fell 9 percent before the bell, after the company also posted lower-than-expected fourth-quarter results and forecast current-quarter profit below analysts' estimates.
The company operates 1,515 stores in the United States and 331 stores in Canada.
(Excerpt) Read more at finance.yahoo.com ...
That was easy.
Reset.
Laying Radio Shack aside as an obsolete business model, the store closings are the result of exuberance and band wagon judgement.
The planners at Staples convinced them selves they could be Subway or Starbucks. Once the thought was produced, the contagion destroyed judgement. They just built too many stores.
That’s the problem with a story like this. How much of it is because of the Obama economy, and how much is this because Amazon and others are eating Staples’ lunch?
Then how do you explain the layoffs of 500 at Cabela’s?
Their problem is obvious to anyone who walks in the door...
Staples prices are too damn high.
One wonders, though, whether many of them have the insight to know what's causing their troubles. My bet is that almost none of them do; their stupid voting over the years in a such indicator of that.
I have one 5 minutes or so away. Good place.
Our staples has down sized but still seems to be busy. Don’t know what their bottom line is but they have good sales which I take advantage of.
But there are plenty Dollar General, Dollar Tree, and Family Dollar stores taking their place.
Sign of the times, I reckon...
“in a such indicator of that.”
That should be “is a sure indicator of that.”
> ... Cabela’s has laid off 500 nationwide ...
The layoff are probably due to the death 2 weeks ago of founder Richard Cabela who had a 25% ownership in the company.
If a billionaire dies, the government wants the death taxes and they don’t care how it gets paid.
I had an uncle who owned 4 furniture stores. When he died, my aunt had to close the stores, lay off about 300 people and liquidate the inventory in order to pay the taxes. This is probably the same thing.
“I wonder... is Walmart now Too Big To Fail?”
Or, will Walmart become the ‘official’ government store?
Romney’s Fault! ?
The last time I went into staples was to score some free after rebate CDs and DVDs probably 15 years ago.
That would be Old Navy
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