• by Sarah Mahoney  @mahoney_sarah, December 10, 2008

While most retailers are smarting from consumers who are shopping less, Office Depot is struggling with businesses that are shopping less, and says it will close 112 underperforming stores in the next three months. The move will reportedly eliminate 2,200 jobs, or about 5% of the chain's workforce. 

The Boca Raton, Fla.-based company started a strategic review back when it released its latest earnings in October, and says that an additional 14 stores will be closed throughout 2009, as leases expire. In addition, it has cut the planned opening of new stores in half, and says it will open just 20 in the year ahead. It also plans to shut six of its 33 distribution facilities.

In its latest quarterly earnings report, the company posted a 7% decline in sales to $3.7 billion, including a 14% drop in comparable-store sales in North America, and a $7 million loss. (Last week, rival Staples posted an 8% decline in comparable-store results for its quarter, and OfficeMax recently announced its own series of layoffs.)

That news comes on the heels of a report from the National Federation of Independent Business, which reports that companies are continuing to cut back and spending as conservatively as possible.

"The weak economy has reduced the need for expansion and new equipment and put pressure on cash flows, inducing owners to postpone discretionary capital outlays," its says. Just 38% reported spending on new equipment, 14% on new fixtures and furniture, and 13% on improved or expanded facilities.