- The chain has closed tons of of shops since 2013.
- It is more likely to shut extra places.
- A chapter will not be doubtless because the chain has new possession.
Through the Covid pandemic there was a darkish interval the place grocery shops ran out of bathroom paper.
Everybody remembers these days when folks had been ordering bizarre manufacturers of bathroom paper on Amazon, shopping for bidets, and in any other case searching for options to an uncomfortable scarcity. We had been fortunate sufficient right here in Florida that the shortages weren’t too dangerous, however some states had naked cabinets and on-line orders had been taking weeks.
Throughout that interval, workplace provide shops, Staples, Workplace Depot, and Workplace Max typically had toiler paper. I visited one a number of days into the scarcity and it not solely had these large rolls utilized in workplaces, it had massive packs of normal rolls.
The common ones bought out pretty rapidly, however the provide lasted for much longer than it had at Goal, Walmart, or Publix. The enterprise bathroom paper, whereas awkward to make use of, was out there for weeks.
These chains, which had as soon as been important retail manufacturers, had develop into so irrelevant to shoppers that in a scarcity, folks forgot they bought this stuff.
Workplace Depot and Workplace Max develop into much less related
It is simple accountable Amazon for the decline of workplace provide shops. However that is not the total story.
Staples and its rivals Workplace Depot and Workplace Max, that are each beneath the ODP Company, turned much less important over time as a result of shopper habits and wishes modified.
Shoppers abandon workplace provide shops
- E-commerce shift: Customers moved to Amazon, Walmart, and Staples on-line for workplace provides.
- Much less demand: Distant and hybrid work sharply diminished workplace provide wants.
- Foot visitors drop: In-store visits and small-business buying each declined.
- Competitors: Massive-box and on-line retailers undercut costs and comfort.
- Model confusion: Overlap between the 2 chains weakened advertising id.
- Monetary pressure: Falling gross sales led to restructuring and a deliberate acquisition by Atlas Holdings.
Sources: Retail Dive, Reuters, ODP Investor relations
Workplace Depot retains shrinking its retailer portfolio.
Getty Photos
Workplace Depot and Workplace Max preserve closing shops
The ODP manufacturers have steadily shrunk their retail operations. That is more likely to proceed after the corporate’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,” Whole Retail reported.
There could also be different advantages as nicely.
“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,” the web site’s Joe Keenan added.
Extra retailer closures will add to a sample that has been ongoing for years.
Workplace Depot has closed over 1,000 shops since its 2013 merger, lowering its retailer rely by about 55%.
This newest company change ought to construct on the unique merger of OfficeMax and Workplace 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,” wrote RetailWire’s George Anderson.
Extra Retail:
- Low cost chain closing places in a number of states
- Prime AutoZone exec makes a transfer shareholders ought to learn about
- Amazon made a change to Prime purchasing to tackle Goal, Walmart
ODP Corp. CEO Gerry Smith is happy about being bought by Atlas Holdings.
“Atlas brings an understanding of our industry, along with the operational expertise, resources, and track record of supporting its companies that will fast forward our B2B growth initiatives and strengthen our position as a trusted partner to our customers,” he shared. “Atlas’ commitment demonstrates their confidence in our future and the strong momentum we’ve achieved through our focus on operational excellence and disciplined execution. We’re excited about our path for the future.”
Workplace Depot and OfficeMax closure timeline
- In Q2 2025, the corporate reported closing 60 retail shops (Workplace Depot + OfficeMax) over the the prior 12-month interval.
Supply: theodpcorp.com - In 2024, they continued to shut shops quietly; there have been reported closures in varied places (e.g. Placerville CA, Nampa ID, San Antonio TX).
Supply: Information Observer - As of 2024, the corporate operated roughly 922 retail shops throughout each manufacturers.
- As of 2025 (after closures over 12 months), the shop rely was about 830 places.
Supply: CT Insider
The general market is getting smaller.
“The office supply store industry has faced choppy waters recently, battling shrinking profit and declining demand due to digitalization and intense competition. In 2025, the industry’s revenue will stand at $20.9 billion, reflecting a drop of 1.8% from the previous year. This decline aligns with the industry’s overall five-year CAGR of -4.0%,” IBISWorld reported.
Circana shared related numbers, however centered simply on the U.S.
Circana: U.S. Workplace Provides Trade (2025)
- Gross sales Income: Gross sales income throughout bodily and digital retail channels totaled $11.5 billion in 2024, representing a 5% decline in comparison with the earlier yr.
- Unit Demand: Whole unit demand fell by 2% in 2024.
- Outlook: The outlook for 2025 stays challenged however more and more steady, with a projected 2% decline and anticipated business flattening by way of 2027.
Supply: Circana
That has led ODP to be extra cautious in its working decisions.
“Office Depot is also picking its battles. Instead of trying to win everyone, everywhere, they’re emphasizing profitable market segments. For example, they’ve leaned harder into serving businesses, schools, and anyone who still needs to buy in bulk. These customers tend to spend more and order consistently, even if it’s fewer than before,” wrote Ryan Davis at Enterprise Republic.
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