Staples Q2 2014 total company sales decreased 1.8% to $5.2 billion, compared to $5.3 billion in Q2 2013. Foreign exchange rates and North American store closures negatively impacted sales by approximately 1%. The company also has predicted Q3 2014 total sales to decrease from last year.
Helping to mitigate some losses, the retailer closed 80 North American stores in Q2, and will reportedly close 140 in total by the end of the year. As part of a two-year cost savings plan designed to cut as much as $500 million off the company budget, Staples will close up to 225 stores by the end of 2015. Staples currently has secured approximately $150 million of cost savings to date, according to a company statement.
While North American quarterly comparable store sales dipped 5%, online sales at Staples.com were up 8% in the same time frame.The e-Commerce growth is a result of the Staples’ expanded category assortment, a boost in the number of business customers, and improved customer conversion, according to the company.
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“We’re accelerating growth in our delivery businesses as customers turn to Staples for more products beyond office supplies,” said Ron Sargent, Chairman and CEO. “At the same time, we have more work to do to stabilize our retail business, and we’re taking action to improve customer traffic, reduce expenses and close underperforming stores.”
