• The chain has closed hundreds of stores since 2013.
  • It’s likely to close more locations.
  • A bankruptcy is not likely, since the chain has new ownership.

During the Covid pandemic, there was a dark period where grocery stores ran out of toilet paper.

Everyone remembers those days when people were ordering weird brands of toilet paper on Amazon, buying bidets, and otherwise looking for solutions to an uncomfortable problem.

We were lucky enough here in Florida that the shortages weren’t too bad, but some states had bare shelves, and online orders were taking weeks.

During that period, office supply stores including Staples, Office Depot, and Office Max generally had toilet paper. I visited one a few days into the shortage, and it not only had those giant rolls used in offices, but it also had large packs of regular rolls.

The regular ones sold out fairly quickly, but the supply lasted much longer than it had at Target, Walmart, or Publix. The business toilet paper, while awkward to use, was available for weeks.

These chains, which had once been essential retail brands, had become so irrelevant to consumers that during a shortage, people forgot they sold these items.

Office Depot and Office Max become less relevant

It’s easy to blame Amazon for the decline of office supply stores. But that’s not the full story.

Staples and its rivals Office Depot and Office Max, which are both under the ODP Corporation, became less essential over time because consumer habits and needs changed.

Consumers abandon office supply stores

  • E-commerce shift: Shoppers moved to Amazon, Walmart, and Staples online for office supplies.
  • Less demand: Remote and hybrid work sharply reduced office supply needs.
  • Foot traffic drop: In-store visits and small-business purchasing both declined.
  • Competition: Big-box and online retailers undercut prices and convenience.
  • Brand confusion: Overlap between the two chains weakened marketing identity.
  • Financial strain: Falling sales led to restructuring and a planned acquisition by Atlas Holdings.
    Sources: Retail Dive, Reuters, ODP Investor relations
Office Depot keeps shrinking its store portfolio.

Getty Images

Office Depot and Office Max keep closing stores

The ODP brands have steadily shrunk their retail operations. That’s likely to continue after the company’s sale to Atlas Holdings closes.

“ODP Corporation being taken private with the Atlas Holdings deal signals a renewed focus on operational efficiency and a leaner cost structure for the office supplies company,” Total Retail reported.

There may be other benefits as well.

“Going private may enable ODP to make long-term investments in the business by freeing it from being so quarterly-earnings focused. These investments, whether in product, supply chain, marketing, real estate, etc., could help strengthen the business going forward,” the website’s Joe Keenan added. 

More store closures will add to a pattern that has been ongoing for years.

Office Depot has closed over 1,000 stores since its 2013 merger, reducing its store count by about 55%.

This latest corporate change should build on the original merger of OfficeMax and Office Depot.

“The announced deal to merge OfficeMax and Office Depot would, presumably, help the combined company cut costs by eliminating duplicative positions and doing away with underperforming locations while giving it increased purchasing power and marketing clout,” wrote RetailWire’s George Anderson.

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ODP Corp. CEO Gerry Smith is excited about being purchased by Atlas Holdings.

“Atlas brings an understanding of our industry, along with the operational expertise, resources, and track record of supporting its companies that will fast forward our B2B growth initiatives and strengthen our position as a trusted partner to our customers,” he shared.

“Atlas’ commitment demonstrates their confidence in our future and the strong momentum we’ve achieved through our focus on operational excellence and disciplined execution,” Smith added. “We’re excited about our path for the future.”

Office Depot and OfficeMax closure timeline:

  • In Q2 2025, the company reported closing 60 retail stores (Office Depot + OfficeMax) over the the prior 12-month period.
    Source: theodpcorp.com
  • In 2024, they continued to close stores quietly; there were reported closures in various locations (e.g. Placerville, CA; Nampa, ID; San Antonio, TX).
    Source: News Observer
  • As of 2024, the company operated roughly 922 retail stores across both brands.
  • As of 2025 (after closures over 12 months), the store count was about 830 locations.
    Source: CT Insider

The overall market is getting smaller.

“The office supply store industry has faced choppy waters recently, battling shrinking profit and declining demand due to digitalization and intense competition. In 2025, the industry’s revenue will stand at $20.9 billion, reflecting a drop of 1.8% from the previous year. This decline aligns with the industry’s overall five-year CAGR of -4.0%,” IBISWorld reported.

Circana shared similar numbers, but focused just on the U.S.

Circana: U.S. Office Supplies Industry (2025)

  • Sales Revenue: Sales revenue across physical and digital retail channels totaled $11.5 billion in 2024, representing a 5% decline compared to the previous year.
  • Unit Demand: Total unit demand fell by 2% in 2024.
  • Outlook: The outlook for 2025 remains challenged but increasingly stable, with a projected 2% decline and expected industry flattening through 2027.
    Source: Circana

That has led ODP to be more careful in its operating choices.

“Office Depot is also picking its battles. Instead of trying to win everyone, everywhere, they’re emphasizing profitable market segments. For example, they’ve leaned harder into serving businesses, schools, and anyone who still needs to buy in bulk. These customers tend to spend more and order consistently, even if it’s fewer than before,” wrote Ryan Davis at Business Republic.

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