Report and Corporate Profiles
Company Structure, Markets and Brands
From the largest global corporations to individual households, OfficeMax is dedicated to our customers’ success. We serve them through two business segments: OfficeMax Contract and OfficeMax Retail. Each of these business segments accounts for roughly half of our revenues, both worldwide and in our U.S. Operations.
OfficeMax Contract is our business-to-business division, which distributes a broad line of office supplies, paper, technology products, and office furniture, and provides print and document services directly to businesses and governmental entities in the United States, Canada (via Grand & Toy Limited), Australia (via OfficeMax Australia Limited), and New Zealand (via OfficeMax New Zealand Limited). OfficeMax Contract operates 51 distribution centers and six customer service and outbound telesales centers, as well as 75 office products stores in Canada, Hawaii, Australia and New Zealand.
OfficeMax Retail sells office supplies, paper, technology products, office furniture, and print and document services from retail stores. Our Retail business segment operates 981 stores in the United States, Puerto Rico, the U.S. Virgin Islands and, through our 51 percent-owned joint venture, Grupo OfficeMax, in Mexico. It also operates three large distribution centers in the U.S., and two small distribution centers in Mexico.
All of our subsidiaries and other companies that we control report up through either the Contract or Retail business segments. For a complete list of OfficeMax subsidiaries, please see OfficeMax’s Form 10-K for fiscal year 2007.
For our business customers with offices in Europe, OfficeMax maintains a network of European locations. Our partnerships with the European Office Supply Association enable us to provide local expertise and pricing in 19 countries.
Customer Segments
The Contract and Retail business segments work in concert to satisfy the needs of our various customer segments. These include the following:
Large Enterprise Businesses, large multi-location companies and governmental entities for which OfficeMax provides expert enterprise-wide coordination with the procurement process.
Mid-Size Businesses, regional and local companies, typically with single locations, for which OfficeMax offers personalized service and effortless ordering.
Small Businesses, Home Offices and Individuals, which are served by retail stores, catalogs and our public Web site, OfficeMax.com.
OfficeMax offers a wide variety of national brands and private-label products and services. See Appendix B: OfficeMax Brands for more information.
Changes in Operations.
During 2007, OfficeMax opened up 59 new stores in the United States and 15 in Mexico. We also closed nine stores in the United States, five in Canada, one in Australia and one in New Zealand.
In conjunction with the 2006 opening of OfficeMax’s new corporate headquarters in Naperville, IL, the company entered into tax incentive agreements with the State of Illinois that were valued at $12 million in 2007.
Other changes of note included the appointment of our new executive vice president and chief operating officer, as well as an organizational restructuring of our wholly-owned, independently operated Canadian subsidiary, Grand & Toy, to better align with the OfficeMax corporate operating structure.