Grand & Toy says it will close all of its 19 retail stores across the country over the next few months.
But the company will continue selling merchandise through its website.
The company says retail walk-ins have become a rarity, accounting for only three per cent of its sales at stores in Ontario, Alberta, British Columbia and Manitoba.
About 160 full-time and part-time staff will be impacted by the closures.
OfficeMax Grand & Toy currently has more than 1,300 employees.
The company says it has seen ''tremendous growth'' in its online channel over the past several years.
``We are concentrating our efforts on ways to better serve our customers in response to their changing business needs,'' said general manager Simon Finch.
''Our customers overwhelmingly prefer an online experience. It offers more products, a constantly growing selection, and convenient door-to-door delivery.''
Finch says they will reassign or re-allocate as many employees as possible to other positions within the company.
OfficeMax Grand & Toy is an affiliate of Office Depot Inc. and has sold workplace products in Canada for over 130 years.