OfficeMax 2015 Annual Report Download - page 15

Table of Contents
• we may be unable to successfully manage the complex integration of systems, technology, networks and other assets of the combined Company in a
manner that minimizes any adverse impact on our customers, vendors, suppliers, employees and other constituencies.
Accordingly, there can be no assurance that: (i) the Merger and restructuring activities will result in the realization of the full benefits of synergies,
innovation and operational efficiencies that we currently expect; (ii) these benefits will be achieved within the anticipated timeframe: (iii) we will be able to
fully and accurately measure any such synergies; or (iv) we will be able to implement new strategies to transform the combined Company. Failure to
successfully integrate the businesses and realize the projected synergies, innovation and operational efficiencies may have a material adverse effect on our
business and results of operations.


The office products market is highly competitive and we compete locally, domestically and internationally with office supply stores, including Staples,
wholesale clubs such as Costco, Sam’s Club and BJs, mass merchandisers such as Wal-Mart and Target, computer and electronics superstores such as Best
Buy, Internet-based companies such as Amazon.com, food and drug stores, discount stores, and direct marketing companies. Many competitors have also
increased their presence by broadening their assortments or broadening from retail into the delivery and e-commerce channels, while others have
substantially greater financial resources to devote to sourcing, marketing and selling their products. Product pricing is also becoming ever more competitive,
particularly among competitors on the Internet. In order to achieve and maintain expected profitability levels, we must continue to grow by adding new
customers and taking market share from competitors. In addition, consumers are utilizing more technology and purchasing less paper, ink and toner, physical
file storage and general office supplies. If we are unable to: (i) provide technology solutions and services that meet consumer needs; (ii) continuously stock
products that are up-to-date and among the latest trends in the rapidly changing technological environment; (iii) differentiate ourselves from other retailers
who sell similar products; and (iv) effectively compete, our sales and financial performance could be negatively impacted.

Effective advertising and marketing efforts play a crucial role in maintaining high customer traffic. The Company focuses on developing new marketing
initiatives and maintaining effective promotional strategies that target further growth the Company’s business. Failure to execute effective advertising efforts
to attract new customers or retain existing customers may adversely impact the Company’s financial performance.

With the increasing use of computers, tablets, mobile phones and other devices to shop in our stores and online, we offer full and mobile versions of our
website and applications for mobile phones and tablets. In addition, we are increasing the use of social media as a means of interacting with our customers
and enhancing their shopping experiences. Multichannel retailing is rapidly evolving and we must keep pace with the changing expectations of our
customers and new developments by our competitors. If we are unable to attract and retain team members or contract third parties with the specialized skills
needed to support our multichannel platforms, or are unable to implement improvements to our customer-facing technology in a timely manner, our ability to
compete and our results of operations could be adversely affected. In addition, if our website and our other customer-facing technology systems do not
function as designed, the customer experience could be negatively affected, resulting in a loss of customer confidence and satisfaction, and lost sales, which
could adversely affect our reputation and results of operations.
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