If they shrunk the stores before they attempted to re-negotiate the leases then both the real estate department and store planning department all need to be FIRED.
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I heard half of the stores we shrunk the physical size of the sales floor we couldn't negotiate a lower rent. Not sure what happened there. It's not like we don't have enough product to fill 25,000 sq ft. The overheads have brown boxes up to the lights. I guess the idea was smaller square footage, lower rent.
OfficeMax will announce soon they are pulling completely out of Canada. This is not a growing retail industry. It stinks. Now is your chance to go out and do whatever you always wanted to do. Did anyone grow up saying "I want to sell pens and paper for a career". Find an industry you love, or one that will offer you a retirement. Don't wait, tomorrow you are one day closer to retirement. Find something you love, something that doesn't leave a bitter taste in your mouth every day.
If a store is doing under $5m/year there isn't much sense in renewing the lease as it expires. The leases from the Staples boom of 1998-2004 are coming up for renewal. The leases on the 25,000 sq ft Superstores run $24,000 - $40,000 per month. The Landlords have no interest in lowering rent. The little 10,000-12,000 sq ft stores were cute, but lacked furniture sections (the only comping department). The 17,000 sq ft Irvine concepts with carpets are the most profitable, there just aren't that many of them.
If anyone is scared of a layoff I work with a company that wants to help people make money. If this business is not for you great you might know of someone that it might be for. www.legalshieldassociate.com/go/joerulli
500 stores will close by end of the 2 d quarter next year with any additional borderline performers to follow. They only announced the immediate closures.