Napa Auto Parts 2005 Annual Report Download - page 13

11
GROWTH INITIATIVES
During 2005, the Company continued to expand its product
offering and improve its marketing programs and dealer
services. In addition, we entered into new distribution
channels to capitalize on growth opportunities presented
in marketplaces where we had little presence. Combined,
these initiatives served as significant growth drivers in 2005
and continued emphasis in these areas will provide additional
growth for S.P. Richards in 2006 and beyond.
S.P. Richards distributes a broad range of business products
sourced from more than 350 leading manufacturers world-
wide. Through product expansion initiatives, our goal is to
continually improve our offering to generate additional
revenue growth. These efforts also support the reseller as
asingle-source provider of business products. For example,
our expansion of the office furniture and cleaning and
break-room product categories helped our resellers more
deeply penetrate their existing customer base. Emerging
categories with additional expansion opportunities include
school supplies and healthcare products.
In 2005, we also added the Genuine Joe proprietary line
of cleaning and break-room supplies, increasing our value
alternatives for customers. Other proprietary lines include:
Sparco office supply basics, Integra writing instruments,
Compucessory computer accessories, Nature Saver recycled
paper products, Elite Image new and remanufactured toner
cartridges and premium papers and Lorell office furniture.
Initiatives to improve our innovative marketing programs
and dealer services represent another important growth
driver for S.P.Richards. These programs and services are
designed to help the Company and its resellers capture new
business, grow existing business and improve overall per-
formance. Examples include a vast assortment of enhanced
catalog offerings, such as the full line catalog representing
our most complete product offering and the consumer
“street priced” catalog which serves to differentiate the end
user’s actual purchase price from the standard list price. In
addition, we provide a variety of promotional and category
specific catalogs. An array of flyers, such as the new products
flyer and the innovative Signature Series, also complement
our catalogs.
Other programs and services include a comprehensive offering
of management support tools for resellers to address such
disciplines as e-commerce and technology, operations and
profitability, human resources and training, national distri-
bution and furniture support services. The SPR Advantage
Program is another significant offering, and represents a
collection of services, tools and support that S.P. Richards
makes available to first call independent office products
dealers. Through this program, we bundle those services and
support tools that best enable the reseller to compete more
effectively in their marketplaces.
Additional services important to our resellers involve education
and training support. Through offerings such as our annual
Advantage Business Conference (ABC), regional training
events and Office Products Financial Profile, we want resellers
to look to S.P. Richards as a valued resource and consultant
for business products information, education and training.
OPPORTUNITIES IN 2006
In 2006 and the years ahead, S.P.Richards will remain
committed to its customers by providing the most complete
lines of quality business products as well as the most effective
and innovative marketing programs and dealer services.
Weare also optimistic that efforts to grow sales through
new customer channels will further strengthen the
Company. Through these initiatives, we remain confident
that S.P. Richards will continue as a leader in the office
products industry.
SPR
POSITIVE INDUSTRY TRENDS
➔Healthy growth rate of U.S. gross domestic product (GDP)
➔Strong growth in white collar employment numbers
➔Steady growth in office occupancy rates in U.S.