The internet has had a dramatic effect on the fortunes of many stalwart companies. Once upon a time if you needed a few bits and pieces for the office, you went straight to Office Depot, and the problem was solved. Now there are hundreds of companies online offering the same products, many of whom offer them at lower prices. Sales at Office Depot dropped off a cliff in 2017, falling by 7%.
The future may be a little brighter though. The company has changed its strategy and gone from just selling products to also selling services. It now operates a subscription program called 'BizBox' and has stumped up cash to acquire CompuCom to help provide the services offered through the program. 14% of the company's sales in 2018 were for the new service division, and that figure should creep upwards. Unless there's a sudden and sharp shock in the market, Office Depot should be safe now.