Amazon rival closing 100+ more stores, downsizing after 40 years
October 31, 2025
Major office supply companies Office Depot and OfficeMax, both owned by the ODP Corporation, continues shrinking its retail footprint as changing consumer habits and a pending acquisition reshape the chain’s business strategy.
The company reduced its store count from approximately 922 locations in 2024 to about 830 in 2025 — a trend that looks to continue.
During the second quarter of 2025 alone, ODP reported closing 60 retail stores over the previous 12-month period.
Multiple factors are driving the ongoing consolidation.
Consumers have increasingly shifted to e-commerce giants like Amazon and Walmart for office supplies.
Meanwhile, the rise of remote and hybrid work arrangements has significantly reduced demand for traditional office products, resulting in declining foot traffic and fewer in-store purchases from small businesses.
The planned acquisition by Atlas Holdings is expected to accelerate this trend.
According to a report from Total Retail, the deal “signals a renewed focus on operational efficiency and a leaner cost structure for the office supplies company.”
Going private under Atlas could potentially allow for longer-term investments in the business.
According to Retail Wire, the merger announced last month “would, presumably, help the combined company cut costs by eliminating duplicative positions and doing away with underperforming locations while giving it increased purchasing power and marketing clout.”
Store closures are nothing new for the company.
Since its 2023 merger, Office Depot has shuttered more than 1,000 locations, cutting its overall store count by approximately 55%.
These changes reflect broader challenges facing the entire office supply industry.
IBISWorld reports the sector is battling “shrinking profit and declining demand due to digitalization and intense competition.”
Market revenue is projected to reach $20.9 billion in 2025, representing a 1.8% decrease from the previous year.
“In 2025, the industry’s revenue will stand at $20.9 billion, reflecting a drop of 1.8% from the previous year. This decline aligns with the industry’s overall five-year CAGR of -4.0%,” IBISWorld reported.
Generative AI was used to draft this story. It was reviewed and edited by MassLive staff.
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