Office Depot Inc. (ODP), one of the leading suppliers of office products and services, has relocated its store in Orland Parkto 15202 S. LaGrange Road from 1 Orland Park Place Suite 190, with a new shopper-friendly layout. The company is focusing on smaller format stores and enhancing shoppers' experience through store renovations. This in turn, will facilitate it in improving store sales productivity.
Earlier, the company announced the redesigning of its Salisbury store in North Carolina with a new layout. Moreover, the company relocated its store in Daphne to another location.
Office Depot, through this remodeling and relocation, 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 format.
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 opportunities.
As business budget remains tight, consumers and small businesses remain frugal about big-ticket spending on items such as business machines and other durable products. Thus, the companies are coming up with new and innovative strategies to navigate through the challenging environment.
Currently, we maintain our long-term Neutral recommendation on the stock. Moreover, Office Depot, which competes with OfficeMax Inc. (OMX) and Staples Inc. (SPLS), holds a Zacks Rank # 2 (Buy).