Staples Inc. has revealed its decision to close down an additional 70 stores in North America. after a sharp decline of 7 percent sales in these stores in the fourth quarter of last fiscal year.
This is not the first time Staples has come with such a store-closure decision. In 2016, Staples put an end to its physical presence in 48 locations across US. According to the data of the last financial year, Staples had 1255 locations in the States and 304 stores in Canada. This decision will lower its presence by 5 per cent in the country.
The company justifies this decision as part of its plan to pivot the company’s portfolio towards an e-commerce platform from the brick and mortar presence. The company envisions setting up its customer base online which is why it is going ahead with plans to close down stores across US and Canada.
The company had last year attempted to acquire Office Depot Inc but was failed and the deal did not go through because of the intervention of Federal regulatory Board. The board dissolved the deal on the anti-trust ground in favor of customers.
Staples is now on the look out for other growth strategy, which from the current steps indicates a move towards e-commerce market.
Staples has been eyeing business beyond its regular office supply which is sees as traditional retail business and has planned to go one step further and has been toiling to promote its private labelled products.