Staples is closing fifteen stores in the U.S. and has plans to close forty-five stores and/or delivery businesses in Europe, reports Huffington Post. This is interesting because Romney has claimed Staples as a success and an example of his job-creating prowess.
Staples is trying to adapt to the evolving needs of its customers. Last month the company reported that its second-quarter net income fell as sales of computers, software, and basic office supplies softened. Computer sales have been pressured by the introduction to many offices of the computer tablet and other mobile devices. Traffic is also down at Staples’ stores and Europe continues to be a weak spot.
The chain expects the U.S. store closings will result in a charge of about $35 million in the fourth quarter. For fiscal 2012, it anticipates about 30 U.S. store closings. Staples also expects 30 stores will be scaled down and stores being relocated.
In Europe, the store closures are expected to occur before the end of fiscal 2012. The company has also tapped John Wilson to serve as president of Staples Europe. Wilson succeeds Rob Vale, who is retiring.
The retailer says its U.S. retail and online businesses will now be run by Demos Parneros. Joe Doody will continue to lead the North American contract and Quill.com businesses, and will assume leadership of supply chain and customer service operations in North America.
While the closing of the stores doesn’t necessarily bode poorly for the company itself, it does put those employees’ jobs in danger. Not only that, but its stock fell to a fifty-two week low in late August.
Republican Presidential nominee Mitt Romney is having a dreadful week. Romney claims that his business experience would solve our countries employment issues — while giving a nod to cutting regulations. Staples, Romney’s success story, pays their employees at a minimal pay rate and now many of Staples’ workers will now be unemployed.
The Framingham, Mass., company anticipates annual savings of about $250 million by fiscal 2015?s end, so they’ll be faring well, however, touting the company as job creators is a distortion of facts. The facts are, that Staples pushed smaller businesses out, while bringing their large company in.When will politicians tout Mom and Pop stores, small local businesses and community, instead of privatization, enormous stores that go out of style leaving no means for the people left behind?
In other words, Mitt Romney’s businesses are failures. What would he do with the country?