Office Depot Inc
), one of the leading suppliers of office products and services,
is focusing on smaller format stores and enhancing shoppers'
experience through store renovations. This in turn, will
facilitate the company in improving store sales productivity.
Following this rationale, the company announced the
redesigning of its Salisbury store in North Carolina with a new
Moreover, the company is relocating its existing stores with a
revamped layout. It recently announced the relocation of its
Daphne store from 6935 U.S. Highway90 to 6900 U.S. Highway90
Earlier, the company announced the relocation of its Arlington
store from 2501 E. Randol Mill Road to 780 E. Road to Six Flags
St., Suite 210.
Further, Office Depot relocated the Memphis store from 5014
Poplar Avenue to 5510 Poplar Avenue and the Costa Mesa store from
2200 Harbor Boulevard to 2300 Harbor Boulevard, with both the
stores exhibiting the company's new concept. Moreover, it opened
two new concept stores, one each in Denver and Omaha.
Through this remodeling and relocation, the company intends to
make its stores more accessible and interactive, with emphasis on
customers' preferences. Alongside, Office Depot aims to downsize
or relocate about 500 outlets into a small or mid-size
The company will also shut down 10 to 20 stores in 2013 due to
the expiration of leases. During 2013, Office Depot plans to
downsize or relocate about 100 large size outlets. Of these,
majority of the outlets will be remodeled into a smaller format
size of 5,000 to 7,000 square feet and the rest of the stores
will range between 15,000 to 17,000 square feet.
Further, the company is contemplating to strengthen its global
footprint and reviewing capital-efficient opportunities to expand
its reach in Eastern Europe, Asia and South America. The company
believes that India and China will provide significant growth
Currently, we maintain our long-term Neutral recommendation on
the stock. Moreover, Office Depot, which competes with
), holds a Zacks Rank #3 (Hold).
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