Office Depot Says Ecommerce is Fine for Canada Market

Office Depot announced last month that it would close all 19 of its Canada-based OfficeMax Grand & Toy retail stores.

And Office Depot had a good reason to close the stores: During its first-quarter conference call, Office Depot chairman and CEO Roland Smith said just 3% of OfficeMax Grand & Toy come from the bricks-and-mortar channel.

Smith said Office Depot believes it can serve its customers in Canada much more efficiently through its ecommerce site, field and telephone sales representatives and customer service centers.

“These store closures are a response to a shift in the purchasing preferences of our business customers,” said Simon Finch, general manager, OfficeMax Grand & Toy, in a press release last month. “OfficeMax Grand & Toy remains one of the largest business-to-business office products providers in Canada, and we will continue to engage and support our extensive business customer base across the country with an exceptional full service direct sales force.”

OfficeMax acquired Grand & Toy in 1996, and the company was rebranded OfficeMax Grand & Toy last March, around the same time Office Depot and OfficeMax announced its merger.

Office Depot is also considering a change in business strategy south of the border. Smith said they are in negotiations with its Mexican joint venture partners to sell its 51% interest in Grupo OfficeMax, which consists of 92 OfficeMax-branded retail stores. Office Depot expects this transaction to close in the second quarter.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.