Office Depot 2012 Annual Report Download - page 4

Store opening and closing activity for the last three years has been as follows:
In recent years, we consolidated our supply chain network to utilize existing distribution centers (“DCs”) to meet the needs of both
our retail stores and North American Business Solutions customers. Refer to the North American supply chain discussion below fo
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additional information.
Sales and marketing efforts are integral to understanding the Divisions’ processes and management. These efforts are addressed afte
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the Divisions discussions.
North American Business Solutions Division
The North American Business Solutions Division sells nationally branded and our own brands office supplies, technology products,
cleaning and breakroom supplies, furniture, certain services, and other solutions. Office Depot customers are served by a dedicated
sales force, through catalogs and electronically through our Internet sites. We strive to ensure that our customers’ needs are satisfied
through various channel offerings. Refer to the Merchandising section below for additional product information.
Our contract sales channel employs a dedicated sales force that services the office supply needs of predominantly medium-sized to
large customers. We believe sales representatives contribute to customer loyalty by building relationships with customers and
providing information, business tools and problem-solving solutions to them. We offer contract customers the convenience o
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shopping our dedicated web sites and retail locations, while honoring their contract pricing in lieu of retail pricing. We also use an
inside sales organization that is staffed by Office Depot employees who support selected existing and new small business customers
who prefer or require a more personalized experience, primarily by telephone. This function, previously outsourced, was brought
back in house at our new inside sales office in Austin, Texas in 2012. Part of our contract business is with various schools, local, state
and national governmental agencies. We also enter into agreements with consortiums to sell to governmental and non-profit entities
for non-exclusive buying arrangements. Sales to our contract customers that are fulfilled at retail locations are included in the results
of our North American Retail Division.
Our direct sales channel is tailored to serve small- to medium-sized customers. Direct customers can order products from ou
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catalogs, by phone or through our public web sites (www.officedepot.com), including our public web site devoted to technology
products (www.techdepot.com).
We use catalogs and the internet to market directly to both existing and prospective customers. Large catalogs with our full listing o
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products are typically distributed annually and supplemented periodically with focused offerings. Prospecting catalogs with special
offers designed to attract new customers are also mailed at certain intervals. In addition, specialty and promotional catalogs may be
delivered more frequently to selected customers based on their past or potential future purchases. We also produce a Green Book
catalog, which features products that are recyclable, energy efficient, or otherwise have a reduced impact on the environment. We
continually evaluate our catalog offerings for efficiency and effectiveness at generating incremental revenues. Products purchased
through our catalogs and over the Internet are primarily fulfilled through our North American supply chain from DCs throughout the
U.S. and occasionally through wholesalers.
2
Open at
Beginning
of Period Opened Closed
Open at
End
of Period Relocate
d
201
0
1,152 17 22 1,147 6
2011
1,147 9 25 1,131 15
201
2
1,131 4 23 1,112 28
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