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Staples Plans to Reduce Store Size

After missing April sales mark, company trims full-year forecast

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Office supply retailer Staples Inc. (Framingham, Mass.) reported sales increased 1.9 percent to $6.17 billion for the first quarter ended April 30. Sales on a local currency basis were flat. The company’s revised expectations are for sales growth in the low single digits this year.

As a result, the company has cut prices on some products and is cutting by half its planned store openings this year.

Staples says it has also cut its projected capital expenditures by $100 million to $400 million, reports The Wall Street Journal.

Ceo Ron Sargent says hundreds of store leases are up for renewal over the next few years and that the company will be aggressive in reducing the size of its stores.

The disappointing sales news caused stock in Staples to drop 15 percent.
 

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