225 stores closing, and online market strategy is a challenge, but top brass are well rewardedBy Taryn Luna – June 1, 2015
Staples Inc. has struggled as the Internet and other retail forces reshape the office supply business it dominated for decades. Sales have fallen and profits have slumped. The company is closing stores, and employees are feeling the squeeze.
One person who has prospered through the rocky reshaping of the business is chief executive Ronald Sargent. His annual total compensation has nearly doubled to $12.4 million over the past three years.
Sargent is leading a “reinvention” plan that aims to shrink Staples’ physical retail presence and boost online sales. Last year, Staples said that it planned to close 225 stores by the end of 2015.
The company does not disclose how many employees have been affected by store closings, but Staples recorded $45.3 million of “employee related” restructuring costs in 2014, and it forecasts as much as $28 million more this year.