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From July 2008
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Sponsored by
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It’s one thing to be a Power Player within a
retail segment, as Office Depot, OfficeMax and
Staples certainly are. It’s an altogether
different thing to be a power in retailing. One
way to illustrate the distinction is to take a
closer look at the office supply superstore
share of market — approximately 10 percent.
By way of comparison, contract specialists have
a 21 percent share of the office supply market,
specialty stores 20 percent and mass merchants
18 percent. The Federal Trade Commission doesn’t
read the statistics this way, however, and has
adamantly opposed any alliance, union, merger,
marriage or other combination of domestic office
superstore retailers – even though each of these
companies’ market share is in the low single
digits: Staples (4 percent), Office Depot (3.4
percent), OfficeMax (2.3 percent). Nipping at
their heels is FedExKinkos, which features the
copying, printing and other services found at a
typical office supply superstore.
As a result of FTC recalcitrance, all the
companies have had to seek unique solutions to
achieve the bulk necessary to remain competitive
in the U.S. market. Staples and Office Depot
have looked abroad for partners, while OfficeMax
is still dealing with the after-effects of its
acquisition by timber company Boise Cascade.
Staples already has extensive overseas
operations, including a foothold in China (where
it has partnered with UPS) and the 2007 opening
of its first store in India. Last month, Staples
announced it had reached an agreement to acquire
Corporate Express, a Netherlands-based contract
dealer in office supplies. The four-month
campaign yielded a $2.7 billion deal that
Staples executives hope will put further
distance between the retailer and its rivals.
Faced with sluggish sales in its North American
division, Office Depot is entering India by
partnering with Reliance Retail. The joint
venture has acquired eOfficePlanet, which uses a
direct sales force to peddle office products and
services to businesses.

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