#9 - Office Depot (NYSE:ODP)
Office Depot (NYSE: ODP) - It’s easy to look at Office Depot as just another casualty of Amazon. After all, the e-commerce giant put the entire industry on notice when it started to sell office supplies online in 2012. But the truth is while we may love The Office, we live in a world where we don’t need to actually look at many of the products that Office Depot sells, including paper. So there is little need to have the stores. And without the stores, their business model becomes a commodity based on price and convenience. Only 1,400 Office Depot and sister stores exist down from 2,600 just five years ago. The stock has recently received a little bump from surprisingly positive second-quarter earnings led by increased sales in its service segment (i.e. the industry’s push to become your home office). This may have some legs if the trend towards a more mobile workforce continues, but without the core business of selling office supplies, this is a model that seems hard to sustain.
About
- Current Price
- 0.00
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
If you think back to when you were a child, you can probably think of many brands that are no longer around. Technology continues to change the landscape of how we purchase things which is a particular challenge in the retail community, but it also has an opposite effect with other manufacturers who find that even some really innovative products can be easily copied or have limited application on a mass scale. And in some cases, companies have their moment in the sun but realize far too late when that fleeting moment has passed. Take our guidance for what it's worth and use your own analysis to form a final opinion. But these companies, for different reasons, will face pressure to remain out of bankruptcy in 2019.
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