This morning office supply retail giant, Staples, announced that it plans to close 225 of its retail locations by the end of 2015. Staples says that amidst poor fourth quarter results deriving from what it calls "soft" consumer demand for electronics, the company has no choice but to close up many of its stores to starve off mounting losses. Staples operates 1500 stores in the US, which equates to it closing nearly 1/4 of its in-store retail business.
"With nearly half our sales generated online today, we're meeting the changing needs of business customers and taking aggressive action to reduce costs and improve efficiency," Staples CEO Ron Sargent said. The closings are expected to save the company nearly $500 million by the end of 2015. Staples will focus more of its resources into generating online sales, but with the PC market dwindling and more consumers turning to Amazon, Newegg and Tigerdirect for their electronics these days, this could just be the beginning of more hard times for Staples.