The Changing Face of Office Supplies: What's Happening to Office Depot and OfficeMax?
The Struggle Continues
Office Depot and OfficeMax, two major players in the office supplies industry, are shutting down nearly 100 more stores. This wave of closures is part of a long-standing trend, driven by the shift to online shopping and changing work environments.
The Impact of Online Shopping
The rise of e-commerce giants like Amazon and Walmart has significantly reduced foot traffic in physical stores. With more people working from home or in hybrid setups, the demand for office supplies has declined, further hurting Office Depot and OfficeMax.
Financial Restructuring and a Potential Buyout
ODP Corporation, the parent company, has been struggling financially. Falling sales have forced restructuring efforts, and a potential buyout by Atlas Holdings could help streamline operations and cut costs.
Going Private: A Possible Path Forward
Going private might allow ODP Corporation to make long-term investments in products, supply chains, marketing, and real estate. These investments could strengthen the business in the long run.
The Decline of Physical Stores
Since the 2023 merger, Office Depot has closed over 1,000 stores, about 55% of their total locations. The latest closures follow the original merger of OfficeMax and Office Depot, which aimed to cut costs and increase purchasing power.
Recent Store Closures
- 2024: Around 922 stores remained.
- 2025 (Q2): 60 more stores closed, bringing the total to approximately 830 stores.
The Future of Office Supplies
The market for office supplies is shrinking, not just because of Amazon but due to changing consumer habits and the impact of remote work. The future of Office Depot and OfficeMax remains uncertain, but they are trying to adapt.