OfficeMax Opens In-Store Service Centers - Analyst Blog
) unveiled its new service centers to provide vital operational
support to business enterprises. The service centers will be
located across the OfficeMax outlets in the U.S.
The OfficeMax service centers will provide a portfolio of 40 services, which will aid businesses with requirements such as web design and maintenance, printing and document management, marketing materials, credit card and payroll processing, human resource services, legal assistance and 24/7 On-Call Tech Support. Further, the company has collaborated with major service providers like North American Bancard, ADP, PAYCHEX, GoDaddy and Carbonite Online Backup to ensure that businesses get top quality services.
As per OfficeMax Small Business Efficiency Index survey conducted in Sep 2013, a million business owners lose about 4 billion hours annually in the execution of essential operational and administrative tasks. Such time-consuming assignments are not only exhausting and but limit business growth as well.
The new in-store service centers are designed to lessen the administrative load so that business owners can focus on expansion.
OfficeMax distributes office supplies and paper, print and document services, technology products and solutions as well as office furniture to business enterprises, government offices and consumers.
OfficeMax is repositioning itself to keep afloat in a difficult consumer environment. The company is containing costs, closing underperforming stores and focusing on providing innovative products and services. All these will expectedly lead to margin improvement.
Moreover, in a move to uplift itself, OfficeMax decided to merge its business with Office Depot, Inc. ( ODP ), which would help the company to capture incremental market share, streamline its cost structure and compete with the industry bellwether, Staples Inc. ( SPLS ) and online rivals like Amazon.com Inc. ( AMZN ) more effectively. The merger will result in annual savings of $400-$600 million by the third year of the deal. The transaction is expected to be complete by the end of 2013.
Currently, OfficeMax carries a Zacks Rank #3 (Hold).
AMAZON.COM INC (AMZN): Free Stock Analysis Report
OFFICE DEPOT (ODP): Free Stock Analysis Report
OFFICEMAX INC (OMX): Free Stock Analysis Report
STAPLES INC (SPLS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research