Boca Raton, FL — While many might assume Amazon is solely responsible for the decline of traditional office supply retailers, experts say the reality is far more complex. Office Depot, OfficeMax, and Staples have all faced mounting challenges — from changing consumer habits to the shift toward remote and hybrid work.
The result has been a steady contraction in the office supply retail market, culminating in hundreds of store closures and the pending sale of ODP Corporation to Atlas Holdings.
Changing Consumer Habits and Online Competition
The rise of e-commerce giants like Amazon and Walmart reshaped how consumers purchase everyday office products. At the same time, the decline in traditional office environments reduced overall demand for in-store shopping.
Industry analysts told PennLive that this change has been building for years.
“The e-commerce shift saw shoppers move over to Amazon and Walmart online for office supplies, while less demand saw remote and hybrid work sharply reduce office supply needs,” TheStreet reported.
Reduced foot traffic and small-business purchasing have further weakened sales. Falling profits and restructuring plans have been ongoing since 2023, as ODP continues to cut costs and close underperforming locations.
ODP Corporation’s Sale to Atlas Holdings
In a move to stabilize its operations, ODP Corporation — the parent company of Office Depot and OfficeMax — is being taken private by Atlas Holdings. The acquisition is designed to create a leaner cost structure and improve efficiency.
“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.
Industry analysts also see the shift as a way for the company to prioritize long-term growth.
“Going private may enable ODP to make long-term investments in the business by freeing it from being so quarterly-earnings focused,” said Total Retail’s Joe Keenan. “These investments, whether in product, supply chain, marketing, real estate, etc., could help strengthen the business going forward.”
Store Closures Accelerate Across the Country
Since its 2023 merger, Office Depot has closed over 1,000 stores, reducing its footprint by roughly 55%. The move follows the ongoing integration of OfficeMax and Office Depot operations and a corporate shift toward digital and business-to-business services.
“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.
According to company data on theodpcorp.com, the retailer closed 60 stores across both brands in the 12-month period leading up to Q2 2025.
In 2024, additional closures were reported in Placerville, California; Nampa, Idaho; and San Antonio, Texas, per the News Observer.
As of 2025, ODP now operates roughly 830 stores, down from 922 the previous year, according to CT Insider.
The Broader Market Decline
The downturn in the office supply sector extends beyond ODP. The entire office retail industry has struggled with declining sales, margin compression, and digital competition.
“The office supply store industry has faced choppy waters recently, battling shrinking profit and declining demand due to digitalization and intense competition,” IBISWorld reported. “In 2025, the industry’s revenue will stand at $20.9 billion, reflecting a drop of 1.8% from the previous year.”
With a five-year CAGR of -4.0%, analysts say many office supply retailers are likely to continue downsizing or shifting to hybrid e-commerce models.
What’s Next for Office Retail
As the Atlas Holdings acquisition moves forward, ODP is expected to focus on operational streamlining and digital transformation. Experts suggest the company could shift resources into logistics, subscription-based office supplies, and small business services to remain competitive.
For consumers, however, the closures mark the end of an era — one where aisles of printer paper, filing cabinets, and office chairs once defined the modern workplace.
What do you think about the shrinking office supply industry and the role of e-commerce in reshaping retail? Share your thoughts in the comments below.
