) announced the creation of a new small-format store named
OfficeMax Business Solutions Center in downtown Milwaukee. This
one of a kind, new-age store will offer tailored business
services, solutions and products, catering to the needs of small
This leading supplier of office products and services, is
reinventing itself by focusing on smaller-format stores and
enhancing shoppers' experience through store renovations. This in
turn, will facilitate the company in improving store sales
Through its cutting-edge store format, OfficeMax intends to
become more accessible and interactive, with emphasis on
customers' preferences. OfficeMax's Business Solutions Center
features an integrated service counter to address the complex
business needs in the areas of marketing and promotion, IT and
As business budget remains tight, consumers and small
businesses remain frugal about big-ticket spending on items such
as business machines and other durable products. Thus, the
companies are coming up with new and innovative strategies to
navigate through the challenging economic environment.
Apart from remodeling stores, OfficeMax expects to downsize
and relocate stores in the U.S. The company plans to close 5-10
stores and open 6 stores in Mexico in 2013.
Moreover, OfficeMax and
Office Depot Inc
) decided to merge their businesses in order to better compete
with the industry bellwether
) and online rivals such as
). The decision augurs well for both the companies, which have
been grappling with soft sales.
The all-stock merger agreement, which involves 2.69 Office
Depot shares for each share of OfficeMax, would result in cost
synergies of $400 to $600 million yearly by the third year from
the time of closing of the transaction. The transaction is
expected to be concluded by the end of 2013. Management of both
the companies are yet to decide on the name of the newly formed
company, the location of corporate headquarters and the CEO.
Currently, shares of OfficeMax retain a Zacks Rank #3
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