Staples sees revenue drop due to store closures - PC Retail

Staples sees revenue drop due to store closures

Weak demand for ‘core’ office supplies also blamed
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Staples has revealed that its third-quarter revenue fell due to 107 store closures across North America and Europe.

Weak demand for ‘core’ office supplies was also to blame for the drop, but Staples reported a growth in its online sales channels.

Revenue for the quarter was $6.1 billion, which was in line with the analysts expectations polled by Yahoo Finance, but down from $6.4 billion in the same quarter last year.

The first nine months of the current fiscal year saw a revenue of $17.2 billion, also trailing behind last year’s $17.8 billion.

“It’s been a year since we announced our strategic reinvention, and we’re evolving our business to meet the changing needs of customers,” said Ron Sargent, Staples’ chairman and chief executive officer, in the firm’s Q3 2013 Earnings press release.

“We continue to face weak demand for core office supplies, but we’re driving growth online and in new categories, while aggressively managing expenses.”

In Q3 Staples launched the biggest refresh to its websites since 2005, adding 70,000 products to its online store.

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