Should I Buy Office Depot Stock \/\/FREE\\\\

The retailers said Wednesday they have agreed to combine in an all-stock deal worth about $1.2 billion that would transform the office-supply retail sector by helping the No. 2 and No. 3 chains compete against industry behemoth Staples.

should i buy office depot stock

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Customers can interact with each brand as they always have, including shopping at Office Depot and OfficeMax stores and online at www.officedepot.com and www.officemax.com. Each company will maintain its respective loyalty programs and expects to announce a combined loyalty program sometime in 2014.

If you have questions or would like to arrange an invoicing account or online access to order for delivery, please contact your Office Depot Account Manager Ken Rose at (832) 477-2922 or ken.rose@officedepot.com.

The merger was approved by Office Depot shareholders in April 1991. As a result of the agreement, which entailed a stock swap worth $137 million, Mark Begelman became president and chief operating officer of Office Depot, with David Fuente remaining chairman and CEO. Over the next 13 months, all Office Club stores were either closed or converted into Office Depot outlets, and the membership fee that Office Club had been charging its regular customers was dropped.

Having successfully moved into the established retail office supply market, Office Depot was confident they could challenge the existing system that served larger businesses. CEO David Fuente told Forbes in May 1994, "We're all selling the same stuff; we're all selling legal pads and pens and pencils, and we all buy from the same place. The real difference in performance is going to be: Are you pricing them better? Giving better service? Delivering better? The difference is not in the strategy but in the execution." Staples and OfficeMax clearly felt Office Depot was on the right track: they both followed suit by acquiring their own contract stationers. However, two years later Office Depot had yet to see big returns on its investment. Integrating the contract stationers into their core retail business had cost more than expected, but Office Depot remained confident that the more diverse customer base should make the investment worth it in the long run.

The company saw $2.6 billion in sales in 1993, with $63 million in profit. By 1994 Office Depot had grown to 362 stores, which still followed the company's original concept--warehouse-like buildings that stocked office supplies at 30 to 60 percent off manufacturer's list prices. The company's closest competitor, the Kmart subsidiary OfficeMax, was only half its size. Not satisfied, Office Depot planned to double the number of its stores in the next five years. 041b061a72