Is Office Depot Really Going Out Of Business? Any Solid Evidence?
The advancement of technology has upped the ante on convenience for the general public. It seems that almost every service or purchase is being made available to the consumer via some online function or smart phone app. In addition, the rising cost of gas has kept many people at home to do their shopping, rather than expending the gas to travel to a physical store for the things they need.
There is evidence to suggest that purchasing things online or even learning how to build items from scratch can save the consumer money in the long run. When a store receives the inventory to stock their shelves, they often have to pass the cost of shipping and housing the inventory on to their customers.
It is not hard to see why. The cost of running a physical store is very high, leaving many retailers in the tough spot. A majority of the time, it is difficult just to break even, let alone turn a profit. Necessary expenditures such as electricity, running water, salaries, property rent and taxes, security systems, and purchasing and housing the inventory can be a huge burden for any business. And when you’re in competition with many other office supply entities, such as Office Max, Staples, and even Amazon.com, justifying these monthly expenses can be difficult.
At this time, there is no solid evidence that Office Depot is permanently closing its doors or filing for bankruptcy. However there are reports that, due to operating costs, they have closed 10% of their underperforming store locations all over North America during the last several years. Unfortunately if the economic climate does not improve soon, we may see many more retailers making the same cost-cutting moves. And perhaps down the line, Office Depot may eventually end up on the chopping block.