What’s up with the OSS Big 3?
Remember when Office Depot was going to merge with OfficeMax? Then the government decided this would create such a major behemoth it had to step in and disallow the merger. Shows how wrong the government can be, again. Can they resurrect the merger given the lastest news? (see news item below).
Personally, I find Office Depot much more boring than Staples and about ‘on par’ with the suffering national Office Products Superstore, OfficeMax. They are also lacking in terms of store merchandising, their relationships with vendors is almost reckless and the only things that save them is efficient supply chain sytems and pretty good marketing. Still, I say, ‘let em merge’ before this Big 3 turns into Retail’s version of the auto industries ‘big 3.’
Office Depot Inc. will close 112 “underperforming” retail stores in North America and has cut down the number of planned store openings for next year.
The Delray Beach, FL-based retailer said the stores would be closed over the next three months, reducing the number of North American stores to 1,163. The stores slated for closure include 45 in the central US; 40 in the Northeast and Canada; 19 in the West; and eight in the South.
The company, which did not disclose the store locations or the number of employees expected to be laid off, said the moves were part of a strategic review announced in October.
The company said it will close an additional 14 stores next year and will only open 20 of the 40 originally planned stores. In addition, six of its 33 distribution facilities in North America will be closed. The company said it would take charges related to the closures ranging from $270 million to $300 million for the remainder of this year and in 2009.
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