Office Depot Admits Amazon is Stealing Its Business

Office Depot saw shares plummet by 25 percent, as it reported weaker-than-expected sales in the quarter ended July 1.

Office Depot Corporate Headquarters 56fadd46b3002

Office Depot saw shares plummet, as it reported weaker-than-expected sales in the quarter ended July 1. But more crucially, the office supplies store admitted that Amazon Business was eating into its corporate services segment. 

Shares lost 25 percent of their value on investor fears that the weak quarter was only the beginning of a tough chapter for Office Depot. The retailer is still trying to find its bearings after a proposed $6 billion acquisition by larger rival Staples was scuttled by U.S. regulators last year. (Staples recently said it would be acquired by private equity firm Sycamore Partners for $6 billion in a deal set to close in the coming weeks.) 

Office Depot reported quarterly sales fell 9 percent, including a 6 percent drop at stores excluding those that have been closed in the last year. Total sales came in at $2.36 billion, below Wall Street expectations for $2.44 billion, while adjusted profit was 6 cents a share, missing forecasts for 8 cents. 

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