Pop quiz: Which public company had the highest market capitalization of all time when adjusted for inflation? Here’s a hint, it shares the same fate as Borders, Woolworth, Circuit City and Blockbuster. In other words, it went bankrupt and disappeared taking loyal shareholders’ money with it.
I wish I could help myself and not laugh out loud every time I read something like this….but I can’t. LOL!
Staples Inc.’s quarterly net profit sank 72 percent as the office-supply giant was hit by a slew of charges related to its recent restructuring and store-closure efforts.
Well it’s finally happened…Mal Wart’s practices have turned around and bitten them in the ass.
1. WalMart leads the charge to outsource manufacturing to Asia.
2. Because of aggressive pricing on Asian imports the “perceived market price” for many products has fallen dramatically.
Oh, isn’t this just too bad. Not.
“It plans to close 30 stores in North America, downsize 30 more and take a pretax charge of up to $1.12 billion as it works on building its online sales and mobile units, among other initiatives.”
“Analysts said Staples had long hinted at some kind of revamp in the pipeline, but some think the retailer has too many problems to hope for a quick turnaround.”
“The chains also face competition from discounters such as Wal-Mart Stores Inc and online retailer Amazon.com Inc, which can sell the same or similar products at cheaper prices.”