Amazon rival closing almost 100 more stores after nearly 40 years in business

"Staples and its rivals Office Depot and Office Max, which are both under the parent company ODP Corporation, took a hit over time because consumer habits and needs changed. The e-commerce shift saw shoppers move over to Amazon and Walmart online for office supplies, while less demand saw remote and hybrid work sharply reduce office supply needs. There's also a foot traffic drop, where in-store visits and small-business purchasing both declined."

"This all led to the ODP brands continuing to shrink their retail operations, which is likely to continue after the company's sale to Atlas Holdings closes. "ODP Corporation being taken private with the Atlas Holdings deal signals a renewed focus on operational efficiency and a leaner cost structure for the office supplies company," Total Retail reported. There's also other benefits. "Going private may enable ODP to make long-term investments in the business by freeing it from being so quarterly-earnings focused. These investments, whether in product, supply chain, marketing, real estate, etc., could help strengthen the business going forward," Total Retail's Joe Keenan added."

"As it turns out, Office Depot has closed over 1,000 stores since its 2023 merger, reducing its store count by about 55%. The latest corporate change should build on the original merger of OfficeMax and Office Depot. "The announced deal to merge OfficeMax and Office Depot would, presumably, help the combined company cut costs by eliminating duplicative positions and doing away with underperforming locations while giving it increased purchasing power and marketing clout," RetailWire's George Anderson wrote."

Staples, Office Depot, and OfficeMax (ODP Corporation) experienced declines as consumer habits shifted toward online retailers like Amazon and Walmart. Remote and hybrid work reduced office supply demand and in-store foot traffic, and small-business purchases fell. Falling sales prompted restructuring, widespread store closures, and a planned acquisition by Atlas Holdings. ODP brands have closed over 1,000 stores since the 2023 merger, cutting about 55% of locations. Going private under Atlas Holdings aims to improve operational efficiency, enable longer-term investments across product, supply chain, marketing, and real estate, and pursue further cost reductions from consolidation.

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