Staples is shutting 225 stores next year as a result of low earning numbers in the fourth fiscal quarter, and a decrease in income Forbes reported Thursday.
"We know it is the right thing to do for the long term health of our business," Ron Sargent CEO at Staples told investors Forbes reported emphasizing that Staples is not getting out of the retail business and that brick and mortar stores are a key part of the company's strategy. (Stores) have to earn the right to stay open and we are committed to making tough calls when it is necessary," Sargent told Forbes.
"While we strive to be transparent, the long term trends have become harder to predict. I want to be clear. We are disappointed about coming up short," Sargent told Forbes.
The office supply company raked in $5.87 billion in income in the fourth quarter.
"With nearly half of our sales generated online today, we're meeting the changing needs of business customers and taking aggressive action to reduce costs and improve efficiency," Chief Executive Officer Ron Sargent said in the statement.
Staples announcement is its second since it closed 42 in the United States last year Forbes reported.
Staples is not alone when it comes to store closures as other retailers like Radio Shack announced it would shutter 1,100 stores following low figures in the fourth quarter Bloomberg Businessweek reported.
Radioshack obtained $835 million in loans in October from an investor group owned by GE Capital in order to renew $625 million of the debt The Dallas Business Journal reported.
J.C. Penney said it was going to close 33 stores, in January and lay off 2,000 employees in an attempt to rebound from past struggles.
Macy's was also expected to cut 2,500 positions that would save the retailer $100 million annually.
