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Print 11 comment(s) - last by menting.. on Feb 21 at 9:33 AM

Deal still needs shareholder and regulatory approvals

Many retailers in the United States that sell technology products and other items for business users have been feeling significant pressure from online retailers like Amazon. Amazon has been steadily increasing pressure on traditional brick-and-mortar retailers as it reaches out with lower prices and even quicker shipping options. Amazon is even planning to offer a same-day shipping option in some areas that could put many brick-and-mortar retailers under incredible pressure.

One of the ways that some companies will look to survive the onslaught from online sellers is by mergers and acquisitions. This is exactly why Office Depot has done with the announcement of an agreement to buy o competitor OfficeMax. Office Depot and OfficeMax are the number two and number three office supply retailers respectively.
 
Office Depot will be purchasing OfficeMax in a stock deal worth approximately $1.2 billion reports The Washington Post. OfficeMax shareholders will receive 2.69 shares of Office Depot for every share of OfficeMax they own. That is a deal equal to $13.50 per share and OfficeMax reportedly has 86.7 million shares outstanding as of October 26, 2012.
 
Analysts believe that the deal reflects the changing retail landscape as more and more consumers begin to shop online.

The largest office-supply company in the industry is Staples, and even it is feeling pressure from Amazon.com. And it's not only online pressure that is challenging dedicated office supply retailers; big box discount stores such as Wal-Mart and Target are also entering the sector in a time when consumers are looking to save every penny they can. Target announced early in January that it would be price matching Amazon in an attempt to gain customers back that are shopping online.

Some cities with both Office Depot and OfficeMax stores will likely see some of the locations close down, but an official “store closing” list hasn’t been revealed yet. 

Sources: Washington Post, Time



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One Less Useless Store
By hood6558 on 2/20/2013 9:57:35 AM , Rating: 2
Hard to shed a tear over the demise of another big box store full of overpriced junk. The few times I patronized either one I was disappointed in their selection and prices. Years ago I bought one of the first PhotoSmart printers from O.M. for $200, only to see it everywhere else for $130. I stupidly assumed that a store that big would have competitive prices. Since then, the few times I went in any of them, I couldn't even find what I was looking for, unless it was just a ruler or a ream of paper. O.D. doesn't even sell external hard drives anymore, and their selection of USB flash drives are all of the "Hello Kitty" variety. Pretty sad. Too bad they killed all the old style stationery shops, where a clerk would actually talk to you. I've wandered around in these big box stores for over 30 minutes without being helped. If they leveled all those stores I wouldn't even notice for a couple of years.




RE: One Less Useless Store
By chmilz on 2/20/2013 10:48:41 AM , Rating: 5
Soooo... you went to an office supply store and were shocked to find an inconsistent array of overpriced tech goods, but were able to find that ruler and paper you were looking for?

Say it ain't so.

Are you one of those guys that buys his groceries at the gas station?


RE: One Less Useless Store
By factionlimit on 2/20/2013 4:57:46 PM , Rating: 2
In office depot looking at 8 feet of external hard drives. Right next to them are another 8 feet of flash drives from San Disk, Lexar, and house brand drives. Just because you are to incompetent to find something on your own don't blame others. I was greeted in 2 min from walking in the store.
Know the saying about assumptions and people who make them? Do you not know every Sunday nation wide retailers change sale pricing and not every retailer will have the same sale price?


RE: One Less Useless Store
By marvdmartian on 2/21/2013 8:44:38 AM , Rating: 2
Not sure where you live, but the last two external hard drives I purchased were from Office Depot. Occasionally, their sale prices beat out even Newegg and Amazon.


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