400 Office Depot Stores to Close

Office Depot Inc. announced that it will close at least 400 stores in the U.S.,150 of them this year, as a result of the company’s recent acquisition of Office Max and the subsequent overlap of retail stores. The company also cited surging online sales as a reason for decreased store traffic and store closings. Currently, nearly half of the company’s sales come from ecommerce.

Office Depot ceo Roland Smith said in a statement, “One of our 2014 critical priorities is to improve our store footprint in North America to best meet customer demand, ensure we are appropriately positioned in the markets we serve and align with our unique selling proposition which we are developing this year. The overlapping retail footprint resulting from the merger provides us with a unique opportunity to consolidate and optimize our store portfolio, while maintaining the retail presence necessary to serve our customers.”