The company has experienced a downturn in its fortunes over the last three months, with shares falling by 38 percent.
As Yahoo! Finance reveals, “stiff competition from online retailers such as Amazon and lower traffic count in retail stores have been playing spoilsport”, with analysts noting that “demand for office products (paper-based) has been decreasing due to technological advancements.”
In addition, with the likes of Costco and Walmart muscling in on the market, “competition is likely to intensify further.”
The nosedive in shares follows a recent negative trend for Office Depot, with the company experiencing “dwindling top-line performance” since 2017, when total sales registered a decline in all four quarters and earnings per share decreased.
The company has revealed that it expects its sales in 2018 to reach $10.6 billion (€8.6 billion), a decrease of 5 percent “on a pro-forma basis due to pressure in the Retail Division and impact of prior store closures.”
In an attempt to “bring itself back on growth trajectory”, Staples “has undertaken a strategic review of business operating model, growth prospects and cost structure” and “now intends to focus on core North American market”. Various other measures have been implemented, including closing poorly performing stores and “concentrating on ecommerce platforms”.
