Staples Downsizing May Be Alarm Call For Traditional Retail

Overview


Timothy Walsh said that while major office supply retailer Staples Inc. could face “substantial pressure” to file for Chapter 11 if its announced substantial downsizing and store closure plan does not work, “Having said that, it looks like they’re taking the right steps to avoid a potential filing.” Mr. Walsh noted that Internet competition is turning a glut of physical locations into a liability for many retailers, saying, “Any retailer whose business model was bricks-and-mortar expansion and faces online competition will have to rethink that strategy.”