Seth Perlman—AP
March 6, 2014 8:34 AM EST

Staples will close 225 stores in North America, about 12 percent of its outlets, in a bid to cut costs amid strong online competition and dropping sales, the company said Thursday.

The office supplies giant expects to save $500 million by 2015 from the latest round of cost-cutting moves, which come after it eliminated 40 stores last year. Staples reported a drop in sales in the fourth quarter of 2013 and projected that sales would be lower in the current quarter compared with last year.

On Tuesday, electronics retailer RadioShack said it would close up to 1,100 of its stores in the U.S., or roughly 20 percent of its locations, after sales were down 19 percent in the fourth quarter of 2013.

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