Office Depot Announces Plans to Close 60 Retail Locations in 2025 Amid Strategy Shifts.

Office Depot (ODP) is making a significant move to streamline its operations, with plans to close 60 retail locations in 2025. This includes the closure of 12 stores in Q1 and 23 stores in Q2, bringing the total to 35 stores closed by mid-year. The company’s decision to reduce its physical footprint aligns with its ongoing transformation to focus on core business areas and improve operational efficiency.

While reducing the number of stores, ODP is seeing positive trends in its business solutions division, particularly in traditional product categories and expansion into the hospitality sector. The consumer business also remains strong, contributing to over $115 million in adjusted free cash flow for the full year.

The store closures, part of ODP’s broader restructuring plan, reflect the company’s strategy to sharpen its focus on high-growth segments and continue to generate strong cash flow while optimizing working capital. These decisions, made before the company’s recent sale, underscore ODP’s commitment to long-term financial health and sustainability.