Staples is nowehere near Chapter 11. They have $1.125 Billion in cash, and $1 Billion in available credit. Plan for the first 225 stores to close is mostly California and Mexico. Then targeting sub $4 Million boxes. Expecting a negative 10% comp in stores in the next 14 months, plans are already being made for the NEXT 225 stores to close. Yes you read that right. More changes in management will have two market stores run by one GM. Staples is headed to be a few select super stores with a huge online presense. Depends how you look at it. I'll be losing my job, but the company has morphed into an online retailer that has a ton of money in the bank. The stores just chase metrics, not sales and margin like they should be. The customers prefer to shop online and not have to deal with a pushy salesman wanting to set up their printer in their home; and the protection plan.Customers love noot having to be pushed into a service place.
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I was at my store for over 10 years. I participated in the 401k. My best year was a return in -1.7 percent. I tried and tried to move my investment. I always lost money. In the final two years, was one of three people who left my store, and not got fired. I was afraid I would have a hard time finding work since I was in consumer electronics with Staples for 10+ years. Prior to that I was at Office Depot for 5 years. I did get out, and now work for a completely different retailer, and loving it every day. As customer service lead, I was blamed for practically every problem the store encountered. In order to be successful, they force you to sell extended warranties. The pressure is extreme. None of the management took any accountability as long as they could pin it on me. I can't tell you how glad I am that is no longer a part of my life.
The lunacy with the BoD not calling him and the others out is that they are shooting themselves in the foot. And yes .com is huge, but I promise you that if the stores aren't there to make .com returns easy or to place the order in store then .com too will take a financial hit. Sit there all you want and think that .com is the answer to the company's woes, I assure you that the cross platform approach is the current answer. The stores have high margin product that we can sell, the problem being that we're too short staffed to schedule anyone in our high margin office supplies section. Payroll definitely is a controllable expense, unfortunately for us when we cut the payroll there isn't anybody available to actually suggest and sale our highest margin items or keep it filled. There is most certainly a disconnect between the executives and the stores.
Just wondering Risssssssmmmm, are you (or were you) actually a Rssm with Staples?
Even if the BoD called them on the carpet, it would not really get anywhere.
As CEO, Ron would brag about DotCom's success and blame not making EPS on the stores. The international failures would be swept under the rug.
Demos would continue the finger-pointing to a subordinate, and then it would roll downhill through the SVP ranks and land on some RVPs and DMs.
They in turn would harass their stores even more and cut payroll to offset the losses, putting the stores in further downward spiral.
Risssssssmmmm you're an idiot... First you say there will be only a few hundred stores left then you go on to say DMs will run 50 stores and RVPs will run 1000 stores and no need for DVPs. Next reason your're and idiot, you say stores are focusing on metrics instead of profit, guess where the pressure for the metrics comes from, hint: its not us associates... The company is most definitely hurting, the feeble attempt to enter the international market has proven to be a mistake (guess who made that decision). So go ahead and keep spewing forth your misinformation, but your lack of gray matter is clearly displayed. And a lot of us have problems with the clear lack of accountability for the upper echelon. If the board was smart they'd be demanding the resignations of many of the executives.
Not just an online retailer. They will not shutter all stores. In 10 years there will be a few hundred select showroom style stores, and only a couple hundred super stores. We can't say we didn't think this stuff was coming. Ron and Demos said publicly that 500 leases were about to end in the next 3 years. "Some stores will downsize, some will relocate to a smaller sq ft, some will close." We are just months from start of those 3 years, more than "some" will close as we have learned. The closings are not hap hazard as some have said. A few leases will be renewed, in areas where increased marketing and trucking expenses would make other stores unprofitable if one closes. You typically need 3 stores in an area to share those expenses to keep them all profitable. The other option as stated before is for GM's to be Market Managers (or "Market Leaders" as spoke about internally). Where a GM will run 2-3 stores at a time. A Lead Associate Manager would be responsible for daily store operations and sales. Three supervisors per store would be retained, regardless of volume in these cases. This will be tested soon in two completely different low volume markets. During test phase no DM changes happen. But if it is rolled out chainwide, you only need 1 DM per 50 stores, 1 RVP per 1000 stores, no DVPs. I know I won't be around to see all these changes, but in theory it makes sense. Worst thing to do is close stores before the lease is up. Why pay rent when there is zero sales. The next changes are aimed to keep marked stores open until leases expire.
"two market stores run by one GM"
Does that mean they will be cutting more DM's, RVPs and SVPs?
If they are closing a total of 500 stores they do not need all that overhead.
Exactly. Staples will be joining W.B. Mason as an online retailer only..