Office Depot, Inc. (ODP) has taken its Samsung collaboration one step forward by adding wireless printing and tablet technology to its line of products. Keeping in mind the fact that more customers are turning tech savvy, Samsung has created SMART printers with Near Field Communication technology.
The new Samsung SMART printers, including Multifunction Xpress C460FW, Printer Xpress C1810W, and Printer Xpress M2020W and Multifunction M2070FW, will be available at the Office Depot retail outlets and website. Apart from these smart printers, Office Depot will also add Samsung’s two latest Galaxy Tab S to its product portfolio. These tablets have features such as Super AMOLED displays, Multi Window, Ultra Power Saving Mode and Fingerprint Scanner.
In 2013, the company merged with Office Max to better compete with rivals like Staples, Inc. (SPLS) and Amazon.com Inc. (AMZN). Subsequent to this, the company announced the closure of 400 overlapping locations across North America by 2016 to generate cost savings of $75 million annually. It expects to close 150 locations by 2014. Including the synergies from store closures, management expects merger synergies to be $675 million by 2016, up from the earlier expectation of $600 million. Out of the total synergies, nearly $180 million will be realized in 2014.
Newly formed Office Depot is well positioned to reap the benefits, as and when the economy revives. This is because both OfficeMax and Office Depot had undertaken initiatives such as cost containment, closure of underperforming stores, reduction of exposure to higher dollar-value inventory items, shuttering of non-critical distribution facilities, and focus on e-Commerce platforms as well as innovative products and services in an attempt to drive sales.
Further, the companies have been improving in-store shopping experience, increasing investment in Copy & Print Depot and Tech Depot services, remodeling stores and introducing smaller format stores. All these are likely to drive revenues.
Currently, Office Depot carries Zacks Rank #2 (Buy). Another stock worth considering is Barnes & Noble, Inc. (BKS) which holds the same rank.