BOCA RATON, Fla. - Office Depot, which has headquarters in Boca Raton, announced plans Tuesday to close at least 400 stores nationwide.
The announcement may have been bad for employee morale, but it was good for investors. On Tuesday, Office Depot shares surged a whopping 15.8 percent.
In November, Office Depot completed the $1.2 billion OfficeMax merger, so some of the locations will close due to proximity.
"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 customer," CEO Roland Smith said in a statement.
Office Depot's spokeswoman Karen Denning said executives have not chosen the stores that will close in South Florida, and she could not disclose how many people the company employed in the area.
Sageworks analysts view the office-supplies retail industry as one of the least profitable, Forbes reported. Office Depot and Staples have been adjusting to the digital era. And online customers have moved a new wave of competitors such as Amazon.com to the forefront.
Office Depot, which now has about 1900 stores nationwide, plans to have closed the first 150 stores after the back-to-school season this year.
According to the company's websites store locators, there are 34 stores in South Florida -- 16 stores in Broward and 18 in Miami-Dade.
Some of the stores are close to each other.
In the Coral Gables area, Office Depot at 2690 Coral Way is only about five minutes away from OfficeMax at 1906 Ponce De Leon Blvd.
In Coral Springs, Office Max at 910 North University Drive is only about 10 minutes away from Office Depot at 651 North University Drive.
When the closures are completed in 2016, the company estimates there will be about $75 million in annual savings.
MAPS: Company presence in South Florida
6 OfficeMax stores in Broward CountyOfficeMax in Broward County
10 Office Depot stores in Broward CountyOffice Depot in Broward County
10 Office Depot stores in Miami-Dade County
8 OfficeMax stores in Miami-Dade CountyOfficeMax in Miami-Dade County
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