OfficeMax 2015 Annual Report Download - page 5

Table of Contents
The Company’s primary website is www.officedepot.com. The Company’s primary brands are discussed in the “Intellectual Property” section below.
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Our fiscal year results are based on a 52- or 53-week retail calendar ending on the last Saturday in December. Fiscal years 2015, 2014, and 2013 consisted of
52 weeks and ended on December 26, 2015, December 27, 2014, and December 28, 2013, respectively. Fiscal year 2016 will have 53 weeks. The Company’s
business in Canada, which has been included in the Company’s results since the date of the Merger maintains calendar years with December 31 year-ends.
The difference in reporting periods does not have a significant impact on the Company’s reported results.
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The North American Retail Division sells a broad assortment of merchandise through our chain of office supply stores throughout the United States,
including Puerto Rico and the U.S. Virgin Islands. We currently offer products and services in the following categories: supplies, technology, and furniture
and other. Refer to the “Merchandising” section below for additional product information. Most retail stores also offer copy and print services, as discussed in
the “Copy & Print Depot ” section below.
At the end of 2015, the North American Retail Division operated 1,564 office supply stores. The count of open stores may include locations temporarily
closed for remodels or other factors. We have a broad representation across North America with the largest concentration of our retail stores in Texas, Florida,
and California. The majority of our retail stores are located in leased facilities that currently average over 20,000 square feet.
As part of the integration of the Office Depot and OfficeMax stores, we have made significant progress in our Real Estate Strategy, which anticipates the
closure of at least 400 stores in North America through 2016. We closed 168 stores in 2014, 181 in 2015, and expect to close more than 50 stores in 2016.
Closures include both Office Depot and OfficeMax locations. Implementation of this strategy results in charges for facility closures, termination costs, and
asset impairments. Refer to Part II — Item 7. “MD&A” for additional information on the store activity.
The retail stores operate under their legacy banners of Office Depot or OfficeMax, though systems, processes and offerings continue to converge. In 2015, the
Company combined the previously existing separate Office Depot and OfficeMax loyalty programs, completed the conversion of all U.S. stores to a common
point of sale system and harmonized product offerings.
The Company has embraced an omni-channel focus, including an expanded Buy Online-Pickup in Store offering to reach mobile customers however they
choose to shop. Sales fulfilled with store merchandise are included in North America Retail Division results, including the computation of comparable store
sales.
Refer to the “North American Supply Chain” discussion below for additional information on our supply chain network.
Sales and marketing efforts are integral to understanding the Divisions’ processes and management. These efforts are addressed after the Divisions
discussions.
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The North American Business Solutions Division sells nationally branded and our own brands’ products and services to customers in Canada and the United
States, including Puerto Rico, and the U.S. Virgin Islands. Office Depot customers are served by a dedicated sales force, through catalogs, telesales, and
electronically through our Internet sites. Refer to the “Merchandising” section below for additional product information. The North American Business
Solutions Division also offers copy and print services, as discussed in the “Copy & Print Depot ” section below.
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