News

Office Depot plans to shutter another 300 stores

August 5, 2016

Office Depot intends to close another 300 stores over the next three years as it continues to revamp and re-strategize.

The news comes on the heels of completing its first phase of its U.S. Retail Store Optimization, launched in 2014, which closed 400 stores and led to over $100 million in ongoing benefits, according to press release on Q2 financials.

Office Depot projects total company sales will be lower in 2016 than 2015. After Q2 sales results came in, the company reported $3.2 billion, a six percent decrease from 2015.

Due to negative market conditions the company also reported adjusted operating income of $67 million compared to $73 million in 2015.

CEO Roland Smith stated, “In the near term, we remain focused on executing our critical priorities, completing the OfficeMax merger integration, implementing our new cost saving programs, and returning capital to shareholders.”

Total capital expenditures in 2016 are expected to be approximately $175 million, a drop from the original target of $75 million, according to a release.

Due to the merger integration with OfficeMax, Office Depot expects total annual run-rate merger synergy benefits to surpass $750 million.