Office Depot took advantage of its brand or retail experience to develop a beachhead in Mexico. In contrast, almost a quarter of Staple’s sales are from outside the US and Europe is doing very badly and is in recession. This foresight has saved Office Depot tons of money.
The margins at all three of the office supply retailers were pressed by the recession. More importantly, big-box retailers like Sam’s Club and Costco moved into office supplies and used their broad purchasing power to offer low prices. Office Depot is now selling Mexico stores and focused on down sizing there’s in the USA. Like Walmart in recent years small store concepts will be used to offset a slowdown in its home market.