X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BOCA RATON, FL-Office Depot is done with major store closures in the US, executives said at the company’s first-quarter conference call. During the quarter, the company closed 107 units and relocated one store.

But mass closings have been completed, said. Office Depot will open 12 or fewer stores in North America this year, said Chuck Rubin, president of North American retail.

“We’re making progress on rent concessions as we rein in our occupancy costs,” Rubin said.

Internationally, the company will complete its exit from the retail channel in Japan by the end of August. Seven of the chain’s 27 stores have closed and the rest will be closing over the next three to four months. Catalog offerings will still be available said Charles E. Brown, president of International.

The chain will pursue expansion through joint ventures, including opening two franchise units in Kuwait, with plans eventually to open 25 stores in the region.

“We are looking for opportunities to leverage Office Depot with local operators,” Brown said.

Total company sales were $3.2 billion, down 19% from the first quarter of 2008. North American comparable-store sales declined 17%. International sales declined 24%, while sales in local currency dropped 9%. The company reported a net loss of $55 million, compared to earnings of $69 million in the prior-year period.

Office Depot operates 1,604 worldwide retail stores in 48 countries.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.