Office Depot Pares Back Store Openings

DELRAY BEACH, FL-Office Depot is only opening 25 to 30 new stores during the remainder of the year, less than the 45 it opened in the first quarter, most of which were holdouts from fourth-quarter opening delays, executives said during a first quarter conference call. For all of 2007, the company opened 71 stores.

“We have tempered our overall rollout strategy in response to the economic environment,” said Chuck Rubin, president of the chain’s North American retail. He also said that the company will continue to renovate its stores into its “M2″ prototype format, which makes up for 55% of the 1,267-unit chain.

In North America same-store sales dropped 9% in the first quarter year over year. Sales were especially tough in the California and Florida markets, which represent 26% of the chain’s total sales.