Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Finance

Finance

Staples Facing Troubling Times

Staples Staples
Staples Staples

The word on Wall Street is that Staples Inc. is facing dark times. This past march the office supply chain announced plans to close as many as 225 stores in an attempt to recoup losses. Staples has been experiencing consistent decline in sales as well as losing customers to the convenience and pricing of Amazon. Brian Yarbrough, an analyst at Edward Jones & Co, stated “It is a positive that Staples is closing stores, shrinking the square footage of stores, but we’re talking about an industry that’s under constant pressure from Amazon, and unfortunately, there’s no value-add for Staples.”

Staples’s stock climbed by a tremendous 39% last year, but has already fallen 15%. Brokers predict that the stock will fall an additional 15% in the next year bringing the stock down to $11.27. Meanwhile Amazon’s stock is expected to go up as much as 42% in the same amount of time. The office supply industry has suffered as a whole, declining 1.8% overall between 2009 and 2014.

Still Staples sold 35% of all office supply sales last year. Their only other major industry based competitor is Office Depot Inc. who recently merged with OfficeMax Inc. Though paper is not as necessary as it once was, Staples is still fulfilling a valuable duty. Amazon has bitten a huge chunk off Staples’s internet sales, but that is only a part of their total operation. Joe Feldman, a New York-based analyst at Telsey Advisory Group, explained “The macro environment continues to pressure the formation of small and medium businesses, which is a growth driver for Staples.” So don’t count Staples out just yet, because they’re not going down without a fight.

 


Comment Template

You May Also Like

business news and trends

Amazon Founder Jeff Bezos Wraps Up $8.5 Billion Billionaire Jeff Bezos has continued his sell-off of Amazon shares, recently disposing of another 14 million...

Technology

On Wednesday, Amazon.com (AMZN.O.) announced several hundred streaming and studio layoffs in an internal message as corporations continue their significant employment cuts beyond 2024....

AI

Imagine a future in which robots understand and respond to your emotions and social cues in a world where technology is not just developing...

Finance

An attack on an American destroyer and commercial vessels in the Red Sea on Sunday has the danger of reigniting market concerns about an...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok