In an effort to enhance customers' shopping experience and
enrich its e-commerce operations,
) - a leading distributor of office supplies and paper, print and
document services, technology products and solutions - upgraded its
e-commerce platform with a new search engine in OfficeMax.com.
With renewed vigor, retailers have shifted their focus on
buyers' needs to generate growth opportunities that will augment
sales. This is well evident from the fact that OfficeMax marked a
rise in conversion rate and registered an increase of over 60% in
average revenue per visit since the new search engine came into
Starting from enhancing the supply-chain management to going
global, from improving their productivity through operating
efficiencies to using technology, the retailers are trying to play
all their cards strategically.
Amid all the strategies, e-commerce has emerged as the most
successful tool for retailers to enhance sales as it enables the
companies to generate additional revenues and broadens the existing
customer base globally. In addition, it aggrandizes the visibility
and reputation of the retailer as a global firm offering great
fashion and value at the same time.
OfficeMax is also focusing on containing costs, closing
underperforming stores and providing innovative products and
services, which should all contribute to margin improvement. The
company should gain from its recent growth initiatives, which
include the ImPress copy and print and Ctrlcenter PC services,
janitorial and sanitation supply, category management, and managed
print businesses. The company's digital as well as technology and
document solutions are also gaining traction.
OfficeMax's store-in-a-store initiative, known as New Channels
is gaining momentum. The company manages the office supply
departments of other retailers (including supermarkets, convenience
stores and drug stores), and provides category management services.
Such initiatives provide avenues outside its stores, and would help
bolster its profit margins and returns on investment.
Currently, OfficeMax, which competes with
Office Depot Inc.
), holds a Zacks #2 Rank, which translates into a short-term 'Buy'
rating. However, we maintain our long-term 'Neutral' recommendation
on the stock.
OFFICE DEPOT (ODP): Free Stock Analysis Report
OFFICEMAX INC (OMX): Free Stock Analysis Report
STAPLES INC (SPLS): Free Stock Analysis Report
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