This company is taking the office supply business to the max. OfficeMax is a subsidiary of Office Depot and the combined entity is the #2 office products retailer in North America (behind Staples). OfficeMax has more than 800 superstores across the US. The stores offer about 11,000 name brand and OfficeMax-branded products, including paper, pens, forms, and organizers, as well as office furniture and a wide range of technology products. OfficeMax also provides printing and document services through its ImPress store-within-a-store. Its contract division sells directly to business and government customers by phone, catalogs, and the Internet. Amid slumping sales, the company was acquired by Office Depot in late 2013.
Change in Company Type
In February 2013 Office Depot said it would acquire OfficeMax in a $1.17 billion all-stock deal. (Office Depot shareholders would hold 51% of the combined company, with OfficeMax shareholders getting 44%.) By joining forces, Office Depot and OfficeMax expect to save $300 million-$600 million in costs and to create a stronger competitor to market leader Staples.
OfficeMax operates on both the retail and wholesale sides of the office products supply business. Contract sales -- made directly to large corporate and government offices, and to small and medium-sized businesses -- is the firm's largest business segment.
The OfficeMax retail superstores account for the remainder of the company's sales. The stores house OfficeMax ImPress departments, which offer print-for-pay and related document services.
Sales and Marketing
OfficeMax's Contract business markets and sells through field sales representatives, outbound telesales, catalogs, the Internet, and through office products superstores.
As Office Depot fully integrates the OfficeMax operations, it anticipates closing at least 400 stores (both Office Depot and OfficeMax locations) through 2016. Office Depot also sold OfficeMax's joint venture stake in Grupo OfficeMax business, which operates OfficeMax stores in Mexico.