ODP, the parent company of US office furniture retailer Office Depot, announced on May 5 that the company intends to complete the separation of the B2B business unit before the first half of 2022 and become two independent listed companies, ODP and NewCo.

In the face of increasingly fierce competition from large-scale stores and online platforms, Office Depot' s retail business has been in trouble. But the B2B department has achieved good development thanks to the company's newly established B2B digital platform.

After the separation, ODP will mainly operate the company's original retail business, providing products and services to retail consumers and small companies. It will continue to operate a total of 1,100 offline stores under its brands Office Depot and OfficeMax, as well as an award-winning platform website: officedepot.com.

And NewCo will debut as a business solution provider, providing services for small, medium and enterprise-level companies. NewCo will also acquire the newly established B2B electronic platform technology business of Office Depot, including BuyerQuest, which was acquired not long ago.

Affected by the COVID-19 epidemic, many B2B businesses have been forced to digitize. Office Depot acquired BuyerQuest in February this year, a company that provides simplified procurement software services.

This separation has several advantages:

Allow Office Depot and NewCo to obtain more targeted investment opportunities and formulate specific strategic goals;

Through adjustment of market strategy and innovation, to focus on the different needs of customers;

Attract more professional talents and use their expertise to support their development and provide better career development opportunities;

Assets and investment complement each other to maximize asset valuation and match shareholder returns.

"We believe that the creation of two more targeted, single-business companies will improve our ability to meet customer needs and bring significant development opportunities." Office Depot CEO Gerry Smith said.