Staples says its closing 60 stores, mostly in Europe, to cut costs
Staples, office supply retailer, said Tuesday that it was closing 60 stores to save $250 million.
Staples announced Tuesday that it would close 60 of its stores mostly in Europe to cut $250 million by 2015.
Europe will see 45 stores closed while the US stores will see total square footage reduced by 15 percent.
The move is part of a restructuring in which the office supply giant likely hopes to sell off its European printing business while strengthening its online presence.
Office supply retailers like Staples have been badly bruised in the recession during which business customers declined.
They have also had to face growing competition from online retailers like Amazon, while dealing with an increasingly paper-less world, said the Wall Street Journal.
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The company reported a large fall of its net income in the first and second quarters of the fiscal year, said Bloomberg, and has been hurt by a lack of job creation in the US and Europe.
Foot traffic is also down at Staples stores across the country and in Europe in particular, said the Christian Science Monitor.
Apart from closing stores and increasing its online presence, the company also named a new executive, Demos Parneros to run its US retail and online division, said the Wall Street Journal.
The Framingham, Mass., company currently operates in 26 countries and on every continent except Africa.
Staples's stock slipped 5 cents to $12.30 with the news of the shake-up.