Office Depot Saves Big With 400 Store Closures by 2016

Office Depot is closing 165 stores this year and the savings from the closure are higher than anticipated. Combined with higher sales, Office Depot delivered results in line with expectations. It reported a loss of 2 cents a share. That's better than the three-cent loss a year ago. Sales jumped 59% to more than $3.8 billion, which is also the same as estimates. Higher sales mostly came from OfficeMax. Office Depot acquired the smaller OfficeMax last November to compete with large online retailers like Amazon. It plans to close about 400 physical stores in the U.S. by the end of 2016. CEO Ronald Smith said, "We have increased the expected annual run-rate synergies from [store closures] to at least $100 million by the end of 2016."