Profile: Office Depot Inc (ODP.O)
Office Depot, Inc. (Office Depot), incorporated in 1986, is a global supplier of office products and services. The Company operates in three business segments: North American Retail Division, North American Business Solutions Division and International Division. The Company’s North American Retail Division sells a range of merchandise through its chain of office supply stores throughout the United States. Its North American Business Solutions Division sells nationally branded and its own brand office supplies, technology products, furniture and services. The Company operates a network of distribution centers (DCs), crossdock, and combination facilities across the United States. The Company operates wholly owned entities, majority owned entities or participates in other ventures covering 41 countries and has alliances in an additional 19 countries. On February 25, 2011, it acquired all of the shares of Svanstroms Gruppen (Frans Svanstroms & Co AB). In November 2013, Office Depot, Inc merged with OfficeMax Incorporated. The combined company will use the name Office Depot, Inc.
Frans Svanstroms & Co AB is a supplier of office products and services. Sales are processed through multiple channels, consisting of office supply stores, a contract sales force, an outbound telephone account management sales force, Internet sites, direct marketing catalogs and call centers, all supported by its network of supply chain facilities and delivery operations.
North American Retail Division
As of December 31, 2011, the Company offered general office supplies, computer supplies, business machines and related supplies, and office furniture from national brands, as well as its own brands. The Company’s stores also contain a Copy & Print Depot offering printing, reproduction, mailing, shipping, and other services and it maintains nationwide availability of a personal computer (PC) support and network installation service that provides its customers with in-home, in-office and in-store support for their technology needs. The Company leases its retail stores in facilities that average over 20,000 square feet. As of December 31, 2011, it had eight locations in the smaller store formats of approximately 5,000 square feet. These stores carry approximately 4,800 to 5,000 stock keeping units (SKUs) providing substantial product offerings to its customers. As of December 31, 2011, the Company’s North American Retail Division operated 1,131 office supply stores throughout the United States.
North American Business Solutions Division
The Company’s North American Business Solutions Division sells nationally branded and its own brand office supplies, technology products, furniture and services through sales force, catalogs and electronically through its Internet sites. Its direct business serves small- to medium-sized customers. The Company’s direct customers can order products from its catalogs, by phone or through its public Web sites (www.officedepot.com), including its public Web site for technology products (www.techdepot.com). The Company uses catalogs and the Internet to market directly to both existing and prospective customers. Large catalogs with its full listing of products are distributed annually and supplemented periodically with focused offerings. Prospecting catalogs with special offers designed to attract new customers also are mailed at certain intervals. In addition, specialty and promotional catalogs may be delivered more frequently to selected customers based on their past or future purchases. The Company also produces a Green Book catalog. Products purchased through its catalogs and over the Internet are fulfilled through its North American Supply Chain from DCs throughout the United States and occasionally through wholesalers.
North American Supply Chain
The Company’s out-bound delivery and its inbound direct import operations are provided by third-party carriers. During the year ended December 31, 2011, the Company closed one crossdock facility.
As of December 31, 2011, Office Depot sold to customers in 60 countries throughout North America, Europe, Asia and Latin America. International Division operates separate regional headquarters for Europe in The Netherlands and for Asia in Hong Kong. The Company’s International Division sells office products and services through direct mail catalogs, contract sales forces, Internet sites and retail stores, using a mix of Company-owned operations, joint ventures, licensing and franchise agreements, alliances and other arrangements. It maintains DCs and call centers throughout Europe and Asia to support these operations. As of December 31, 2011, the Company had catalog offerings in 13 countries outside of North America and operated more than 40 separate public Web sites in the International Division. As of December 31, 2011, the International Division operated, through wholly owned or majority owned entities, 131 retail stores in France, Hungary, South Korea and Sweden. In addition, the Company participates under licensing and merchandise arrangements in South Korea, Thailand, Israel, Japan and the Middle East.
During 2011, the Company acquired additional operations in Sweden, adding customers to both the contract and retail distribution channels. As of December 31, 2011, Office Depot de Mexico included 232 retail locations in Mexico, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, and Panama, as well as call centers and DCs to support the delivery business in certain areas.
As of December 31, 2011, the Company offered general office supplies, computer supplies, business machines and related supplies, and office furniture under various labels, including Office Depot, Viking Office Products, Foray, and Ativa. The Company classifies its products in three categories: supplies, technology, and furniture and other. The supplies category includes products, such as paper, binders, writing instruments, school supplies, and ink and toner. The technology category includes products, such as desktop and laptop computers, monitors, printers, cables, software, digital cameras, telephones, and wireless communications products. The furniture and other category include products, such as desks, chairs, luggage, sales in its copy and print centers, and other miscellaneous items.
The Company buys all of its merchandise directly from manufacturers and other primary suppliers, including direct sourcing of its own brand products from domestic and offshore sources. It operates separate merchandising functions in North America, Europe and Asia, as well as in its joint ventures. The Company operates global sourcing offices in Shenzhen and Hangzhou, China.
Copy and Print
The Company’s North American retail stores contain a Copy & Print Depot offering printing, reproduction, mailing, shipping, and other services. This includes Xerox Certified Print Specialist associates to assist with digital imaging and printing and shipping services through UPS and the United States Postal Service. In addition to the in-store locations, it operates nine regional print facilities, which support copy and print orders taken in its North American Retail and North American Business Solutions Divisions. The Company also offers copy and print services to its customers in Europe through its e-commerce business.
Office Depot Inc
6600 North Military Trail
BOCA RATON FL 33496
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