Are too many office supplies a bad thing? Apparently so for Office Depot and Office Max. As the merger of the two companies gets underway an overlap of stores in the same areas means some stores will be closing their doors.
Office Depot plans to shutter about a quarter, or at least 400, of their 1,900 U.S. stores by the end of 2016, the Associated Press reports.
The company expect 150 stores to close in 2014. Officials say there are no estimates on the number of jobs that will be affected by the store closures, but that it would look to place the best talent impacted by the closings into new roles with the company.
Tuesday’s announcement comes seven months after the No.2 and No. 3 office supply retailers completed a $1.2 billion merger.
The closures are an effort to improve the company’s store footprint in North America to better meet customer demand and ensure the company is positioned in the markets they serve, Chairman and CEO Ronald Smith says in a statement.
“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,” Smith says.
The store closures are expected to result in at least $75 million in annual savings by 2016.
Office Depot Plans to Close at Least 400 US Stores [Associated Press]