Office Depot Closing 300 Stores

Executive Summary

• Office Depot (ODP) announced the expansion of its US retail store optimization program, which started in 2014; the company plans to close 300 stores in the next three years. In the second quarter of 2016, the company completed the closure of 400 stores.
• At the same time, Office Depot plans to expand its“store of the future” pilot program to 24 stores by the end of this year. The program features more elements that are designed to enhance the shopping experience.
• Office Depot expects total company sales to be lower in 2016 than they were in 2015 due to the store closures and disruption from the prolonged Staples acquisition attempt.