Dive Brief:

• Staples Inc. Wednesday reported a 39% fall in Q1 profit amid falling store traffic, which fell 2%. Average order size fell 3%, and revenue fell 6.9% to $5.3 billion.

• The retailer suffered a 5% decline in same-store sales in North America, excluding currency fluctuations, and a 10% decline in overall North America sales. European same-store sales fell 7%, contributing to a 19% decrease in overall international revenue. 

• Web sales increased 3%.

Dive Insight:

Staples Inc. continues to falter in an environment where demand for office supplies in general has declined and where competition to meet the remaining demand has increased from web retailers and general-merchandise retailers.

Its own boost in web sales and its cost-cutting efforts haven’t been enough to overcome those challenges. The retailer awaits word from the Federal Trade Commission on its bid to acquire rival Office Depot, a bid that was rejected several years ago on anti-competition concerns. These results could help clear the way for the merger to go through this time around.