As advancements in technology continue, some businesses are slowly noticing slips in their revenue. Substitutes and competition are causing this problem.
Staples is one of many businesses facing these struggles. The demand for their products is decreasing and online rivals are stealing business.
By the end of 2014, Staples is shutting down 140 stores in North America. Their focus is going to shift towards online selling.
This could be seen as a loss, but if sales continue increasing online then revenue might still be at par. Also, sales of their non-traditional items have been increasingly successful.
As long as they concentrate on improving and upgrading their furniture collection and are aware of their online competition, I don’t think they will run out of business. They just need to transfer their focus on the supply that is most demanded.
If they work strategically, I don’t believe they will be doomed. This will not be like the time Netflix took over the many businesses because there will always be some demand for what Staples sell.
Expansion of their non-traditional inventory and managing their underperforming stores will save Staples. Their strategy looks promising and I look forward to seeing their progress in the future.
Sources:
http://www.cbc.ca/news/business/staples-to-close-140-stores-in-u-s-and-canada-this-year-1.2741945