How many stores are left? Are they getting close to the magic number of 450 that was speculated about years ago as the number of likely stores left that might be "showrooms" for dotcom?
Is this true? Is Staples really attempting to get the number of stores down to 450?
BAND-AID = PROFIT
CLOSING STORE = ???????? NOT SURE
I know of a store that makes the numbers and was in the top 50 in the company for customer service and the store is being closed! Their building needs repairs done, expensive repairs and their lease is due to expire... So the store is closing!!! Make sense? Nope! Had the store been properly been maintained over the years the repairs would not be so costly! But instead they just used "band aids" to fix the building issues! They do expect the customers to migrate to the other local stores, but the customers are willing to shop at Walmart and Target for their needs instead of continuing to give Staples their business! The company pushes their associates to provide good customer service, but where and when does the big shots provide good customer service and makes sure that the customers are "extremely satisfied"? This is not it!
I don't think anyone is disagreeing that the stores being opened are bad choices, or "bets," and that future store closings will occur.
It seems the general consensus is that Sycamore "thinks" it's making good investments.
Your arguement is about closing stores.
Understood.
But, the fact they're opening stores and hiring people logically means they're not looking to make their retail footprint smaller... at least not yet.
They're betting the table and raising their wager. This is a simple fact that must be considered. You're focusing on one thing when other's on this thread are focused on another.
The open question is... why open stores and hire people if "they" believe it's a bad bet? Why (in the case of some California stores) upgrade non-performing stores and close performing ones? Why hire 500 business development specialists to generate retail business if retail is no longer the focus?
These are questions we don't have answers to. Hopefully, someone can shed light on this.
Ok, try it this way. They made 1600 bets. 600 we're immediately bad and another 400 are probably bad but you think the bets they just placed are the exception. .... my advice, don't visit Vegas.
I dOn’T Get tHe ThInG aBoUt UsInG cApItAl LeTtERs .HoW iS tHaT bAd EnGlIsH ?
Oh , and the company is a train wreck .
The point is that considering their continued investment in new stores, they're not making the moves of a failing company.
If we compare Staples to companies like Sears, Radio Shack, and the former Toys R Us, Staples isn't operating under the assumption they'll be going bankrupt.
Simply, you don't go investing in retail space you expect to close. That's counter-productive. Unless we know why Sycamore is truly opening stores, we don't know their true intentions.
Looking at their other companies, it's apparent they're actually making an effort to grow the business, however much it seems they're failing to do so.
They've closed 600 since 2010...
Each one read a NEW store once.
I work at a brand new store that's only been open two months. My coworker is moving to a store that's scheduled to be opened next month.
So, it's not just about closing stores. New stores are still being opened. A company doesn't go opening stores if their ultimate plan is to close stores.
One last thought ... Some stores HAVE been closed that were still profitable. This had nothing to do with market saturation and everything to do with sales decline TREND. This goes back to my original point. The TREND is NOT your FRIEND. If a store has shown a steady decline, is nearing a lease renegotiation it may very well still be on the chopping block. No one wants to sign a 15 year lease when you can only project 2 or 3 years of small profit.
Lots of words but only ONE ADDITIONAL TRUTH >>> leases do effect timing. Whew, glad we got that out. While were at it you can almost always discover when your lease comes due by doing a little HUB work or even local real estate info.
SORRY I HURT SOMEONES LITTLE FEELINGS!
@U6vSTUK-2bxy, you know... you'd get your point accross more effectively if you didn't use caps. That's makes for bad English and is hard to read.
To the other posters: thanks for a level-headed conversation. That other person may think you're corporate shrills paid to post on this site (Sycamore could care less), but your "soft peddling," as it's been called (LOL) is good reading.
Keep the info flowing.
Some truth to these posts- but the simple fact is that the trigger to close a store is a combination of a few things:
If the stores net profit contribution line falls below the magic number of 10% of total net sales- well its a goner
As leases come up for renewal if the terms aren’t favorable— well it’s a goner
Over saturation in the market— well some are goners
The company stupidly believes that if they close stores those customers will migrate over to the remaining ones. Well historically I think the lift from these actions has been in the middle single digits at best, and it lasts for only a short while.
What a freaking mess this entire company has become.
If you had read my post accurately.... I pointed out that YOU SOFT PEDDLED the truth. I wrote that the BEST stores have lost MASSIVE AMOUNTS OF TOP LINE and those stores were thought to be SAFE and now even some of them are going down so do you not GET IT. Let me spell it out for you. YOU state AS THEY BECOME UNPROFITABLE ... I'M TELLING YOU THAT'S ALREADY HAPPENED. I know of stores in the top 20 profit wise in the entire company in 2010 that will be break even this year and the decline has been accelerating.
Now go back to your HR cubicle and try again.
@U6vSTUK-1saa, there are no intentions to mass-close stores. And, if you would've spent the time to read my post you'd realise I literally said the same thing you said. Allow me to illustrate.
My original post:
"There are no intentions to close performing stores at this time. However, unprofitable stores will continue to close as time moves on."
Your post:
"Stated accurately >>> stores will continue to be closed AS THEY BECOME UNPROFITABLE!"
You said the same thing I said... the same thing.
Anyway, the goal is to find a way to make these stores profitable. If that goal can't be realized, then stores will continue to close as they go in the red.
To date, they've only closed about 400 stores over the last two years, and their goal is to make the remaining stores profitable... not just shut down everything and close up shop.
But, we can all agree that it'll be an uphill battle. Only time will tell if they'll succeed in turning the company around.
when I left in march, there were still around 1000-ish
"There are no intentions to close performing stores". That is misleading. Stores are still shedding Top and Bottom line at an alarming rate. Stated accurately >>> stores will continue to be closed AS THEY BECOME UNPROFITABLE! The 450 number was developed from core stores that were believed to be the strongest. Even that number has proven to be inaccurate as some of these units have lost half or more of their Top Line in just 8 years. Stores once considered CASH COWS are now barely profitable. It's a grim picture and those that wish to sugar coat it usually PAID to lie to you.
This was the original plan. The intent was to shed stores for Staples and Office Depot to satisfy prerequisites for the merger. These plans were scrapped once the merger fell through, which led to the Sycamore deal.
In short, no.
There are no intentions to close performing stores at this time. However, unprofitable stores will continue to close as time moves on. There is no longer a goal to close stores as originally planned, so long as all stores remain profitable.