Staples, the largest U.S. office supplies retailer, forecast a fall in current-quarter sales as it loses customers to mass market chains and e-retailers, and the company said it would close up to 225 stores in North America by 2015.
Staples' shares fell 9 percent before the bell, after the company also posted lower-than-expected fourth-quarter results and forecast current-quarter profit below analysts' estimates.
The company operates 1,515 stores in the United States and 331 stores in Canada.
(Read more: A 'tsunami' of store closings seen hitting retail)
Staples said it had initiated a multiyear cost reduction plan that was expected to generate annualized pretax cost savings of about $500 million by 2015.
Rival Office Depot said last week that it expected sales to continue falling in 2014, after reporting a surprise quarterly loss.