Office Depot announced on Tuesday that it expects sales to drop this year due to a weak demand for office supplies and a stronger United States dollar, Reuters reports.
The statement was largely grounded on lower-than-expected results on quarterly sales: the company's retail sales fell 7 percent in the fourth quarter, despite the acquisition of OfficeMax. In North America, same-store sales fell 2 percent in the same quarter.
Earlier this month, industry competitor Staples announced that it plans on purchasing Office Depot for an equity value of approximately $6.3 billion ($11 per share), making it the only major office supply company within the industry.
"This is a transformational acquisition which enables Staples to provide more value to customers, and more effectively compete in a rapidly evolving competitive environment," Staples Chairman and Chief Executive Officer Ron Sargent said in a statement, according to The Verge.
"We expect to recognize at least $1 billion of synergies as we aggressively reduce global expenses and optimize our retail footprint. These savings will dramatically accelerate our strategic reinvention which is focused on driving growth in our delivery businesses and in categories beyond office supplies."
In 2013, the FTC approved the merger of OfficeMax and Office Depot, which were then the second and third place leaders within the industry. Now attention rests on the decision of the FTC and their ruling on Staples dominating the office supply market.
