Businessweek

Office Depot, Inc. supplies office products and services to consumers and businesses in the United States and internationally. Segments The company operates in three business segments, including North American Retail Division, North American Business Solutions Division, and International Division. North American Retail Division The North American Retail Division sells an assortment of merchandise through its chain of office supply stores throughout the United States. The company offers general office supplies, computer supplies, business machines and related supplies, and office furniture from national brands, as well as its own brands. Its stores also contain a Copy & Print Depot offering printing, reproduction, mailing, shipping, and other services and maintain nationwide availability of personal computer support and network installation service that provides its customers with in-home, in-office and in-store support for their technology needs. The majority of the company’s retail stores are located in leased facilities that average approximately 20,000 square feet. As of December 29, 2012, it had 79 locations in the small and mid-size store formats. The North American Retail Division operated 1,112 office supply stores throughout the United States. North American Business Solutions Division The North American Business Solutions Division sells nationally branded and its own brands office supplies, technology products, cleaning and breakroom supplies, furniture, certain services, and other solutions. Office Depot customers are served by a sales force, through catalogs and electronically through its Internet sites. The company has agreements with consortiums to sell to governmental and non-profit entities for non-exclusive buying arrangements. Its direct sales channel is tailored to serve small- to medium-sized customers. Direct customers can order products from its catalogs, by phone or through its public Websites (www.officedepot.com), including its public Website devoted to technology products (www.techdepot.com). The company uses catalogs and the Internet to market directly to both existing and prospective customers. It produces a Green Book catalog, which features products that are recyclable, energy efficient, or otherwise have a reduced impact on the environment. Products purchased through the company’s catalogs and over the Internet are primarily fulfilled through its North American supply chain from distribution centers (DCs) throughout the U.S. and occasionally through wholesalers. North American Supply Chain The company operates a network of DCs, crossdock, and combination facilities across the United States. International Division As of December 29, 2012, the International Division sold to customers in 57 countries throughout Europe, Asia, Latin America, and Australia. Outside of North America, the company operates wholly-owned entities, majority-owned entities or participates in other ventures covering 37 countries and has alliances in an additional 20 countries. The 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. The company maintains DCs and call centers throughout Europe and Asia to support these operations. The company has catalog offerings in 15 countries outside of North America and operates approximately 40 separate public Websites in the International Division. As of December 29, 2012, the International Division operated, through wholly-owned or majority-owned entities, 123 retail stores in France, South Korea and Sweden. The company participates under licensing and merchandise arrangements in South Korea, Israel, Japan, Dominican Republic and the Middle East. During 2011, the company acquired additional operations in Sweden, adding customers to both the contract and retail distribution channels. Merchandising The company offers general office supplies, computer supplies, business machines and related supplies, and office furnitur