Company is losing to many customers and earnings are down to survive long term.
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It's hard to say exactly what the Staples business model will look like in terms of the physical presence 3 years down the line, regarding the amount of retail stores that will be left (and the size of the remaining stores in sq.footage). Perhaps the company will end up with a smaller gross percentage of sales but a larger net profit due to the cost-cutting measures. I still have as yet to really hear any transformational ideas from senior management for how to move the company forward. Austerity-driven measures are only going to go so far, and the Depot merger will give the combined the company a monopoly on the overall market share but it just makes two downsizing companies into one large downsizing company in the end. Whatever. As long as the stock prices remain on the right side of the market and the primary shareholders get to cash out, these are the things that both companies have prioritized highest with all other considerations secondary.
Long term I believe it will bite them in the ass. Already had customers say they will look elsewhere after things go third party