Dive Brief:

• Staples reported on Wednesday that its second quarter sales fell 3.7% to $4.75 billion missing expectations of $4.77 billion, according to Thomson Reuters. 

• Q2 North American same-store sales dropped 5%, outpacing the 3.1% drop anticipated by research firm Consensus Metrix. Q2 saw a net loss of $766 million, compared with a profit of $36 million during Q2 last year. Adjusted earnings were 12 cents per share, meeting expectations cited by Thomson Reuters.

• The retailer said it’s on track to close the 50 stores it had earlier said it would shutter. But while the company said Q3 sales would likely decrease, it did not provide guidance. That would be its 15th straight quarter of sales declines, according to Reuters.

Dive Insight:

Staples and Office Depot are still struggling to figure out their strategies in the wake of their failed merger plans. 

The two companies' planned $6.3 billion merger was knocked down when a judge granted a Federal Trade Commission injunction over antitrust concerns in May. The merger of the two companies would have created an international office supply goliath that would have relied on its impressive brick-and-mortar presence to neutralize the growing threat posed by online competition. 

Staples has said it will be boosting its assortment and services, but is in the midst of developing new approaches. Earlier this summer, the retailer introduced rush delivery to better compete with Amazon, but an executive shuffle ended with Staples CEO Ron Sargent stepping down in June. The office supplies retailer did beat expectations last quarter, and the company is sticking with its plan to close 50 stores.

“We are dramatically changing our mindset and operating model as we execute our 20/20 strategy," said interim CEO Shira Goodman said in a statement, adding that Staples will be repositioned for long-term sales growth.