Office Depot, Inc. is a
global supplier of office products and services. The company was incorporated
in 1986 with the opening of our first retail store in Fort Lauderdale, Florida. In fiscal year 2007, we sold $15.5 billion of products and services to consumers and
businesses of all sizes through our three business units: North American Retail
Division, North American Business Solutions Division and International
Division. Sales are processed through multiple channels, consisting of office
supply stores, a contract sales force, internet sites, direct marketing catalogues
and call centres, all supported by our network of crossdocks, warehouses and
delivery operations.
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Headquarters EU
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Headquarters US
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Office Depot
Columbusweg 33
5928 LA Venlo
The Netherlands
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Office Depot
2200 Old Germantown Road
Delray Beach, Florida 33445
USA
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Headquarters Asia
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Headquarter Latin America
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Office Depot
Suite 614
Tsim Sha Tsui Centre East Wing
66 Mody Road
Tsim Sha Tsui
Kowloon
Hong Kong
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Office Depot
2200 Old Germantown Road
Delray Beach, Florida 33445
USA
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International Division
Office Depot sells to
customers in 43 countries throughout North America, Europe, Asia and Latin America either through wholly-owned entities, majority-owned entities or other
ventures covering 35 countries, and through alliances in an additional eight
countries. The International Division sells office products and services
through direct mail catalogues, 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.
The international direct
channel was launched in 1990 under the Viking Direct® brand with the start-up
of operations in the United Kingdom. We now have catalog offerings in 11
countries outside of North America. In March 1999, we introduced our first
international public internet site for consumers and businesses in the United Kingdom. Today, we operate over 30 separate web sites in the International Division.
In June 2003, we
further expanded our contract start-up business with the acquisition of
Guilbert, S.A. The acquisition of Guilbert added European-wide purchasing
power and scale to the International Division. Guilbert operations and
customers are now fully integrated into the Office Depot and Viking operations,
and as of the end of 2006, we no longer operate under the Guilbert trade name.
Currently, the
International Division operates 137 stores in France, Japan, Hungary, Israel and South Korea through wholly-owned or majority-owned entities. In addition,
161 retail stores are operating under the Office Depot brand name under various
licensing and joint venture agreements in Costa Rica, El Salvador, Guatemala, Honduras, Panama, Mexico, and Thailand. We also participate in
71 franchised stores in South Korea, bringing our total number of stores
outside North America to 369. In 2007, the International Division expects to
open over 20 stores through company-owned and majority-owned entities.
We are continuously
assessing opportunities to expand our geographic footprint around the globe.
During the second quarter of 2006, we acquired a controlling interest in Best
Office in South Korea and increased our ownership interest to a majority stake
in Office Depot Israel. In August 2006, we completed the acquisition of
Papirius s.r.o., one of the largest business-to-business suppliers of office
products and services in Eastern Europe. In October 2006, we acquired a
majority stake in AsiaEC, one of the largest suppliers of office products and
services in China. To appropriately support our geographic expansion, the
International Division operates regional headquarters for Europe/Middle East
and Asia and is developing a regional headquarters for Latin America.
North American Retail
Our North American Retail
Division sells a broad assortment of merchandise, including brand name and
private brand office supplies, business machines and computers, computer
software, office furniture and other business-related products and services
through our chain of office supply stores. Most stores also contain a design,
print and ship center offering graphic design, printing, reproduction, mailing,
shipping, and other services.
In recent years, we have developed a new store format that we call
"M2." This design is intended to enhance the overall shopping
experience for customers by providing improved lines of sight, more effective
product adjacencies, and updated signage and lighting, while lowering overall
operating costs. This format is being used for all new store openings and
remodels. In 2006, we completed remodeling 176 stores, and we expect to remodel
all remaining stores in the next two to three years.
Our North American Retail Division currently operates nearly 1,200 office
supply stores throughout the U.S. and Canada. The largest concentration of our
retail stores is in California, Texas and Florida, but we have broad
representation across North America. We plan to continue our store expansion by
adding approximately 150 new retail stores in 2007 and 200 additional stores in
2008.
North American Business
Solutions Division
We have provided office
supply products and services directly to businesses through our delivery
operations for over twelve years. In 1998, we expanded our catalogue business
and strengthened our international operations through our merger with Viking
Office Products (“Viking”), a company that sold from catalogs and operated
customer call centers in the United States and in several European countries.
In 2006, we stopped
marketing the Viking brand in the United States, although we continue to use it
for direct marketing to customers in our International Division.
Also in 2006, we acquired
Allied Office Products, an independent dealer of office products and services.
This acquisition strengthened our position in the Northeast part of the United States while bringing us expertise and relationships in key vertical markets.
Integration of this acquisition was substantially complete as of the end of
2006.
Our North American Business
Solutions Division sells branded and private brand products and services by means
of a dedicated sales force, through catalogues, and electronically through our
internet sites. We strive to ensure that our customers’ needs are satisfied
through the method of delivery that they want, and continue to develop the
systems and processes to enable us to do so efficiently and effectively.
Our Direct business is
tailored to serve small- to medium-sized customers. Our direct customers can
order products from our catalogues, by phone or through our public web sites (www.officedepot.com),
including our public web site for technology purchases (www.techdepot.com).
Our Contract business
employs a dedicated sales force that services the office supply needs of
medium-sized to Fortune 100 customers. These sales representatives build
relationships with customers and provide them with information, business tools
and problem-solving services. Contract customers can also shop on dedicated web
sites and in our retail locations while honoring their contract pricing.
9 public websites:
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Web
site designed exclusively for Spanish speaking customers based in the U.S.:
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Corporate
customized contract Internet site:
30+ public Intetnet Web sites outside
of North America:
10+ corporate customized contract
Internet sites: