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It's not just newspapers that are the new buggy whips

Discussion in 'Sports and News' started by heyabbott, Mar 6, 2014.

  1. heyabbott

    heyabbott Well-Known Member

    http://www.washingtonpost.com/business/staples-to-shutter-225-stores-as-sales-move-online/2014/03/06/97f64a08-a526-11e3-b865-38b254d92063_story.html
    By Associated Press, Updated: Thursday, March 6, 7:59 AM
    FRAMINGHAM, Mass. — Staples will close up to 225 stores in North America by the end of next year as it seeks to trim about $500 million in costs annually by 2015.

    The nation’s largest office-supply retailer said Thursday that nearly half of its sales are now generated online, so it will aggressively cut costs to become more efficient.
    Company shares dropped more than 10 percent before markets opened.

    The recession did heavy damage to the industry, which is now under increasing pressure from online retailers as well as discount stores.

    There is rapid consolidation under way and rivals Office Depot and OfficeMax just completed a $1.2 billion merger.

    But the overhead costs of running ‘big box” stores has put companies like Staples under stress.

    FoxNews blames Obamacare
     
  2. Inky_Wretch

    Inky_Wretch Well-Known Member

    Aside from Walmart, Target, Bass Pro Shops and Cabela's, are any big boxes doing well these days?
     
  3. heyabbott

    heyabbott Well-Known Member

    Are Costco, Sams Club and BJs hurting?
     
  4. Inky_Wretch

    Inky_Wretch Well-Known Member

    Forgot Costco, lumped Sam's with Walmart and don't have the other one here so I didn't think of it. But you're right, there are probably a few more. It just seems like there are more big boxes in trouble than doing well.
     
  5. The Big Ragu

    The Big Ragu Moderator Staff Member

    Not even Walmart and Target are doing great. Walmart sales missed by a bit when it reported a few days ago, and Target sales and earnings really slid when it reported a few weeks ago. The data breach really hit Target hard. Earnings were down quarter over quarter by close to 50 percent.

    Staples disappointed in its latest quarter, but Staples struggling didn't come out of nowhere. It's sales have been declining for quite a while, and it had already embarked on cost cutting, including closing a bunch of stores last year. Same deal with Office Depot. Its sales and earnings have been steadily getting hit. There has been flagging demand for traditional office supplies.
     
  6. JayFarrar

    JayFarrar Well-Known Member

    I think Home Depot and Lowes are doing well.

    Hard to buy lumber at amazon.
     
  7. Bob Cook

    Bob Cook Active Member

    The trouble for a lot of big-box stores is that their economic model -- based on an expanding middle class moving deeper into the suburbs and willing to drive long distances because these stores were the only places that had decent selection -- is no longer a given.
     
  8. Versatile

    Versatile Active Member

    I thought this thread was about spanking.
     
  9. JR

    JR Active Member

    Target Canada has been an unmitigated disaster since it arrived about a year ago. Lost close to $1 billion in their first year and have left most Canadians totally unimpressed. Crappy store locations, empty shelves, small selection (because of store sizes) and high prices.

    Canadian Tire, Costco Canada and Home Depot Canada are the big winners.

    Sam's packed up and left the country a number of years ago.
    No one can figure out what the fuck Lowe's is supposed to be.
     
  10. The Big Ragu

    The Big Ragu Moderator Staff Member

    The losses Target piled up on their roll out in Canada were pretty steep. It is going to be just short of a billion dollars in a year. When they were expecting immediate profitability. If there hadn't been the data breach, there would have been a lot more stories about it. Target is just not hitting on any cylinders right now.
     
  11. TigerVols

    TigerVols Well-Known Member

    My sister is a HD manager and she was telling me the other day that they've instituted a company-wide retraining program that highlights customer service for Internet orders...most stores will have reserved parking for Internet order pick-up, and there will special counter and dedicated employees to deal with these golden customers.

    "We are not going to let happen to us what happened to Circuit City" is the mantra, apparently, as HD embraces the Internet.
     
  12. DeskMonkey1

    DeskMonkey1 Active Member

    I've never seen the numbers but the Bass Pro in the city I used to live in was viewed as a "destination shopping" place, to the point that the city counsel had no qualms about hiking sales tax in that shopping center only to 11%. It failed because the other stores in that center revolted (why go to Books a Million at 11% when you could go to Barnes and Noble two miles away at 8%, for instance)

    I don't have a crystal ball so I can't say if would have failed or not but I do remember all the opposition came from the neighbor stores, not Bass Pro
     
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