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JkXgc\j j\\j jXc\j [ifg# n`cc Zcfj\ )), cfZXk`fej JLE D<;@8 E<NJ J<IM@:<J Æ Staples Inc said it would close up to 225 stores in the United States and Canada — 12 per cent of its North America outlets — and forecast another quarter of sales decline as it loses customers to mass market chains and e-retailers. Shares of the largest U.S. office supplies retailer fell as much as 17 per cent after the company also reported weaker-thanexpected fourth-quarter results and forecast a profit for the current quarter that fell far below analysts’ estimates. Staples has 1,846 stores in the United States and Canada. “Our customers are using less office supplies, they’re shopping less often in our stores and more online, and their focus on value has made the marketplace even more competitive,” chief executive Ronald Sargent said on a postearnings call. Staples said it had initiated a multi-year cost reduction plan that was expected to generate annualized pretax cost savings of about $500 million by 2015. Analysts said the store closures, which would take place by 2015, were unlikely to boost the company’s results in the near term. “The company had years to close and shrink the store base and stuck to its guns, and that decision is likely to impact them for the foreseeable future. This is too little, too late,” Janney Capital Markets analysts wrote in a note
to clients. The brokerage cut its rating on Staples’ stock to “neutral” from “buy.” Staples and rival Office Depot Inc have been struggling to keep shoppers from turning to mass market merchants such as Wal-Mart Stores Inc and online retailers like Amazon.com Inc. Office Depot, which reported a surprise quarterly loss last week, said it expected sales to continue to fall in 2014. “Staples’ disappointing fourthquarter performance further highlights the ongoing secular and cyclical challenges facing the office supply retailing industry,” BB&T Capital Markets analyst Anthony Chukumba wrote in a note to clients. Staples has been shifting its focus to new categories such as business technologies, breakroom supplies, and copy and print services from traditional office supplies like paper and toner. The company said on Thursday that it would refresh about 20 per cent of the products in its stores, adding new items in categories beyond office supplies. In North America, the company will add eight new categories including maintenance repair and operations items, storage solutions and retail supplies for small businesses. Staples said it would add about 1,600 items in categories beyond office supplies and remove about 1,000, beginning mid-March.
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There she is, said airport officials as the first non-stop flight from Reykjavik, Iceland touched down in our city last week. On board the inaugural flight was some very precious cargo — the Prime Minister of Iceland — to celebrate what he says is the beginning of a strong friendship between the two regions. Prime Minister Sigmundur David Gunnlaugsson, his wife and other dignitaries arrived from Reykjavik, as nonstop service from our city to Iceland kicked off Wednesday afternoon. His hair may have been a little ruffled from his in-flight nap, but Gunnlaugsson said the first non-stop flight to our city was a success. “It was wonderful to fly over and see all of the squares (on the ground), Canada is very organized. But that doesn’t mean that Canadians are square. You’ve all been so very nice and kind,” he said, offering some words to awaiting passengers. “And I hope you all have a wonderful
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time exploring my country, while I take a bit of time to tour your city.” Rod and Irene Stevenson waited anxiously as they prepared to board the departing flight. Rod said Iceland has been on his list of go-to destinations for some time. “It’s always been on my bucket list, it’s a place I’ve always wanted to go,” Rod said, adding that he can’t wait to visit the Blue Lagoon, one of the most beautiful hot springs on the planet. “It’s a very unique part of the world.” Also on hand for the ceremony, Mayor Don Iveson along with Deputy Premier Dave Hancock. The new service will operate every day of the week except for Thursday on an Icelandair Boeing 757, which seats 183 passengers in a three-class layout. The more than six-hour red-eye flight will depart from EIA at 6:30 p.m., and will arrive in Reyjavik at 6:50 a.m. Iceland time the next morning. A flight from Reykjavik will leave at 4:45 p.m. and arrive at EIA at 5:30 p.m. Edmonton time the same day.
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Pierre Hebert
780-459-7786 www.bermontrealty.com
Guy Hebert