Office Depot, Inc.
) has taken its Samsung collaboration one step forward by adding
wireless printing and tablet technology to its line of products.
Keeping in mind the fact that more customers are turning tech
savvy, Samsung has created SMART printers with Near Field
The new Samsung SMART printers, including Multifunction Xpress
C460FW, Printer Xpress C1810W, and Printer Xpress M2020W and
Multifunction M2070FW, will be available at the Office Depot retail
outlets and website. Apart from these smart printers, Office Depot
will also add Samsung's two latest Galaxy Tab S to its product
portfolio. These tablets have features such as Super AMOLED
displays, Multi Window, Ultra Power Saving Mode and Fingerprint
In 2013, the company merged with Office Max to better compete
with rivals like
). Subsequent to this, the company announced the closure of 400
overlapping locations across North America by 2016 to generate cost
savings of $75 million annually. It expects to close 150 locations
by 2014. Including the synergies from store closures, management
expects merger synergies to be $675 million by 2016, up from the
earlier expectation of $600 million. Out of the total synergies,
nearly $180 million will be realized in 2014.
Newly formed Office Depot is well positioned to reap the
benefits, as and when the economy revives. This is because both
OfficeMax and Office Depot had undertaken initiatives such as cost
containment, closure of underperforming stores, reduction of
exposure to higher dollar-value inventory items, shuttering of
non-critical distribution facilities, and focus on e-Commerce
platforms as well as innovative products and services in an attempt
to drive sales.
Further, the companies have been improving in-store shopping
experience, increasing investment in Copy & Print Depot and
Tech Depot services, remodeling stores and introducing smaller
format stores. All these are likely to drive revenues.
Currently, Office Depot carries Zacks Rank #2 (Buy). Another
stock worth considering is
Barnes & Noble, Inc.
) which holds the same rank.
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