Office Depot to Shut 400 Stores

According to statesman.com, Office Depot announced to shut down 400 stores as it streamlines after its merger with OfficeMax in late 2013.

It was revealed that the retailer will close 150 stores among its more than 2,000 retail outlets this year alone. And most of the stores will be closed after the back-to-school shopping season, asserted CEO Roland Smith. But he didn’t identify which stores would be closed. The stores closing is expected to save $75 million a year by 2016.

Years of fierce competition between Staples, Office Depot and OfficeMax resulted in too many office-supplies stores closure, even as the companies that buy office supplies shifted to online shopping, said the statement. Also, Smith noted the merger of Office Depot and OfficeMax left many stores near one another.

“The overlapping retail footprint resulting from the merger provides us with a unique opportunity to consolidate and optimize our store portfolio, while maintaining the retail presence necessary to serve our customers,” Smith said in a written statement.