Will Office Depot’s (ODP) Apple Watch App Woo Customers?

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Office Depot, Inc. ODP has introduced a new app for Apple Inc’s AAPL smartwatch. The app is designed to cater to the needs of customers who prefer to shop from anywhere at any time.

The app boasts of features that include voice-activated search, ink and toner finder and an Office Depot and OfficeMax stores locator. Moreover, there will be lucrative daily deals for the app users.

Office Depot has been focusing on digitalization to improve its sales. As more and consumers shift online, especially mobile phones, building a robust digital portal has become imperative for the companies to grow their revenues. In Oct, 2014, Office Depot became one of the first retailers to start accepting Apple Pay.

The new Apple watch app is also a step in that direction. The app will be available for free on the App store.

The office supplies industry continues to face weakness due to soft demand for office products (paper-based) and increasing competition. On the one hand, smartphones, tablets and laptops are fast emerging as viable substitutes for paper-based office supplies, and on the other hand, mass merchandisers like Wal-Mart Stores Inc. WMT and online retailers like Amazon have expanded into the office supplies space.

To combat odds, Office Depot, accepted Staples, Inc. SPLS staggering $6.3 billion buyout proposal earlier in Feb, 2015. Industry experts believe that the deal is a step to stave off competition, attain cost synergies and provide consumers with a better omni-channel platform. The transaction is expected to conclude by the end of 2015.

At present, Office Depot carries a Zacks Rank #4 (Sell).

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