Is Office Depot Dying?
Thus, I think Office Depot’s footprint of 1,307 stores in North America is its most valuable asset. For instance, Amazon could buy Office Depot and convert those stores into Amazon Go locations.
Read MoreIn individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Thus, I think Office Depot’s footprint of 1,307 stores in North America is its most valuable asset. For instance, Amazon could buy Office Depot and convert those stores into Amazon Go locations.
Read MoreThis might make Office Depot more of an electronics services firm and put it in a good position to form some sort of partnership with Amazon (NASDAQ: AMZN). An obvious future for Office Depot would be a service center for Amazon electronics and a brick and mortar location for Amazon returns and pickups. A logical move for Amazon would be to buy Office Depot.
Read MoreMasterPass looks like a serious contender in the payment wars that has a few advantages over Apple Pay. A big one is the existing MasterCard payment network. One critical step the company has done is to get the big monster banks including BOA and Citi (NYSE: C) onboard. Notably missing is Chase which is pushing its own Chase Pay solution.
Read MoreIt looks like America’s retailers are getting set for a Summer of Death 2016, with chains dying right and left. Likely to join Aerostopale and Sports Authority in the retail graveyard are Office Depot (NASDAQ: ODP), and almost every mall clothing retailer.
Read More$33 million in cash from operations, that’s right folks, Office Depot only generated $33 million from $14.15 billion in sales. This number is particularly frightening because Office Depot reported $184 million in cash from operations in March 2015. The company’s cash from operations decreased by $151 million in just a year.
Read MoreOne thing is clear though: The brick-and-mortar office supply business is doomed. My prediction is that both Office Depot and Staples will collapse within the next few years, whether or not they merge. Investors should stay away from this sector because it simply has no future.
Read MoreCurrent trends in the retail industry and the economy indicate that we will see a massive wave of store closings in 2016. The most noticeable of these closures will be in the ailing department store, office supply and clothes sectors, but we’ll also see a lot of storefronts shuttered in consolidating sectors like drugs and groceries.
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