Similar to the consolidation of the beer industry, the office supply business is also undergoing massive consolidation with the takeover of Office Depot by Staples. The Federal Trade Commission has yet to approve the deal, concerned by the potential creation of a monopoly in the industry. Still, Staples’ CEO Ronald Sargent expects the deal to be closed by the end of 2015.
When there is no more growth to manage, capital structures switch to consolidation as the next wave of strategic management in moribund industries.
A more intriguing question: why are there fewer offices in a supposedly vibrant U.S. economy?