Office Depot [ Free Report on ODP] ( 1) has boosted its bottom-line by reducing promotions. The company is also looking to downsize or relocate some 500 stores and close about 20 stores. It also plans to remodel its stores into a smaller format of 5,000 to 7,000 square foot.
Earlier this month, Office Depot had announced that it developed a new store concept that improves the shopping experience for customers. The company said that its store formerly located at 6935 U.S. Highway 90 has been relocated to 6900 U.S. Highway 90 Suite 3 under the new concept.
This week, Office Depot announced that its store formerly located at 1 Orland Park Place Suite 190 has been reopened at 15202 S. LaGrange Road with a new concept that has been created to encourage customers to interact more with products.The remodeling and relocation of stores should help Office Depot in what is expected to be another challenging year for the company. Neil Austrian, CEO of Office Depot, had said at the time of the release of the company's quarterly results in November last year that cost cutting and margin improvements could yield benefit of approximately $300 million from 2013 to 2015. While cost-cutting measures will certainly help Office Depot and OfficeMax, both companies will also benefit from an improvement in the labor market. It will be interesting to see if the improving labor market had any positive impact on the two companies' top-line results in the fourth quarter. Footer:
- Office Depot Inc. Technical Analysis [ http://www.StockCall.com/OfficeDepotInc012213.pdf ]