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Office Depot, Inc.

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Office Depot has undertaken a strategic review of its business operating model, growth prospects and cost structure to bring itself back on growth trajectory. These helped the company to outperform the broader industry in the past three months. The company is also closing underperforming stores, reducing exposure to higher dollar-value inventory items, shuttering non-critical distribution facilities, concentrating on e-Commerce platforms as well as focusing on providing innovative products and services. However, persistent weakness in the office products sector, technological advancements and stiff competition from online retailers are weighing upon the company’s performance. For now management anticipates total sales to be lower in fourth-quarter 2016 versus 2015 due to store closures, business disruption owing to merger related issues and tough market conditions.However, the rate of decline is expected to decelerate sequentially.

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