H&R Block Closing 400 Locations
H&R BLOCK CLOSING 400 LOCATIONS AND LOWERS OUTLOOK
(CNN) – H&R Block is closing 400 locations amid a lowered sales and profit outlook for the rest of 2018.
The tax preparation service’s CEO said Tuesday most of the locations that will close are smaller stores.
The company’s stock was down a whopping 20% on the news Wednesday.
H&R Block says it isn’t planing any lay-offs due to the closures.
All the stores scheduled for closure are within five miles of other locations, which would presumably absorb workers from nearby shuttered stores.
The closures are the company’s answer to an apparent problem with market saturation; sort of like Starbucks having a store on every corner.
The increasing popularity of do-it-yourself tax software is also cutting into the company’s earnings.