Business & Tech

Staples Will Close 40 Stores in 2013

The Framingham-based company's quarterly profit fell 9.2% amid soft demand for computers in North America and weak international sales.

Framingham-based Staples plans to close 40 stores in 2013, according to the Boston Business Journal.

During a call with analysts, Staples reported quarterly profits fell 9.2% amid soft demand for computers in North America and weak international sales.

Staples, which has a store in Mansfied located on Route 140, started 2013 with 1,886 stores in the United States and Canada.

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Staples, the largest office-supply chain in the U.S., has sought to trim costs by cutting jobs in Europe and reduce its North American retail space, reported the Wall Street Journal.

"I think when I look at our two biggest challenges, we've got to get the top line growing again and I think we've got to improve our results in international," Chairman and Chief Executive Ronald Sargent said during the conference call.

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Sargent said in deciding to close a store the profitability of a particular store isn’t the only factor used. He said the company looks at what kind of benefit nearby Staples stores would see if one store closed.

Demos Parneros, the head of Staples’ North American operation, said there are about 750 to 800 stores with leases coming up for renewal within the next three years, reported the BBJ.

“It really comes down to a deal-by-deal situation,” Parneros told analysts on the call. “And if it really makes sense to pull the trigger and close the store, we’ve been aggressive in doing that if it makes sense for us. If we feel like the store’s profitability is good enough and even with risk for the next few years, it’s fine. We renew on a very short-term basis and we’ve been successful in doing so.”

Staples said sales of tablets and break-room supplies strengthened.

Sargent said the North American economy was improving at a "glacially slow" pace.

In Europe, where unemployment remains high, Sargent doesn't see a recovery until at least 2014, he told the Wall Street Journal.

The company's online business was a bright spot, with sales for that segment rising 3%.

Online sales have benefited from new product offerings, as Staples has added over 90,000 new items online over the past year.


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