Local Office Max Announces Closure, San Angelo Evaluates Economy

San Angelo’s OfficeMax recently announced the local branch of its business will be closing its doors.

“One of the critical priorities for Office Depot, Inc. continues to be rationalizing our store footprint in North America,” Office Max spokesperson Julianne Embry said. “The overlapping retail footprint created by the merger of Office Depot and OfficeMax in 2013 provided us a unique opportunity to consolidate and optimize our store portfolio, while maintaining the retail presence needed to serve our customers.”

Office Depot announced in 2014 that it would close around 400 stores over several years. The business closed approximately 165 locations in 2014 and 182 in 2015.

“As a result, the company is closing its San Angelo, Texas OfficeMax store #6426, located at 4225 Sunset Dr., on September 17, 2016,” Embry said. “We will continue to serve our customers online at officedepot.com.”

San Angelo LIVE! asked if the employees at OfficeMax will remain employed with Office Depot in town after Office Max closes.

“We will do everything we can to help associates who may be impacted by providing eligible associates with a severance package and other company subsidized benefits,” Embry said. “Also, where possible, we are working with our associates to identify open opportunities in our neighboring stores, or in other areas within the company.”

Hastings also recently announced that its entire chain would be closing, including its branch in San Angelo. Furthermore, Green’s Grocery and Café is planning to close in the near future as well. However, San Angelo Planning & Development Services Director Jon James did not express concern about most of the recent announcements of closures.

“I don’t necessarily see those [closures] as indicative of anything about our local economy,” James said. “A lot of those issues with Hancock Fabrics and with Hastings are regional, [or] international chains that are being affected. They’re closing multiple stores, so it’s nothing specific to here.”

According to the City’s website, “The Planning and Development Services Department is responsible for preserving and maintaining San Angelo's historic, diverse neighborhoods by facilitating orderly growth and development.”

“Businesses open and close almost every day,” James said. “I don’t see those businesses [as] indicative of anything negative about our economy. A few businesses that are big name businesses happen to be closing around the same time.”

For more about Planning and Development Services, check out San Angelo LIVE!’s previous article about the dangerous buildings program.

“We see businesses coming in every day [and] new businesses opening,” James said. “Of course, not all of those businesses end up being successful. Again, [despite] the fact that a few businesses are closing, we’re still seeing interest in new businesses opening, so I don’t think it is indicative of any sort of negativity about our economy.”

Michael K. Looney, vice president of Marketing and Recruitment at the Chamber of Commerce, stated that it's natural to ask questions about the future of the buildings these businesses will soon vacate.

“[Businesses] seem to depart less frequently than they do seem to come in,” Looney said. “San Angelo [has] a real stable economy, so it’s not uncommon for companies to establish here and remain here for decades.”

Economic Development Director Roland Peña said he has not heard of any parties interested in the closing companies’ buildings. However, Peña said that “it’s still early in the process,” and these are good locations for future businesses.

San Angelo’s Economic Development Department keeps an inventory of vacant buildings and provides interested parties with information such as building specifications. The department works closely with the Chamber of Commerce and commercial realtors in the city.

Peña noted that San Angelo has over 1,140 openings in retail jobs. These businesses that are closing (Hastings, Green’s Grocery, and Office Max) each provide retail services, so some of the employees of these companies may be able to transition into some of those jobs.

Furthermore, San Angelo’s metropolitan statistical area (MSA) has experienced a 2.2 percent job growth from June 2015 to June 2016. Transportation and utilities jobs have increased by 100; professional services grew by 100; leisure and hospitality has grown by 200; and Peña said the healthcare market is “very strong.”

“We have very strong industry sectors,” Peña said. “There are positions out there, and hopefully, those that are affected [by these closures] can transition to some of these positions that are open.”

However, Peña did not say those affected by these closures should not worry about the job market.

“I myself have been through job uncertainty,” Peña said. “I wouldn’t say that they don’t have anything to worry about. I would say that, as luck would have it, there are positions available in our healthy economic environment in San Angelo.”

Peña mentioned Howard College’s recently approved associate degree program for nursing as an option for a strong career choice.

“[The nursing program is] an opportunity for those that are accessing their career path and are looking to make a change," Peña said. “I think anytime we encounter those kinds of opportunities where we’re at the crossroads and have to make a decision, it’s a good time to evaluate and say, ‘Hey, perhaps I need to look at those educational programs that will help further advance me in my career.’”

Peña added that anyone faced with potential unemployment should go to the local office of Workforce Solutions in town or visit texas.com. He also pointed out the expansion of Time Clock Plus and Goodfellow Air Force Base as examples of positive developments in the local economy.

“As the economic development arm of the city, we are aware of the other expansions that are occurring in the city, and we’re working with these companies,” Peña said. “I think that I would choose to be on the side of optimism as opposed to making a determination that things are not as healthy in San Angelo.