(Dec. 25, 2010)
263 Shuman Blvd., Naperville, IL 60563 USA
Tel: (630) 438-7800
Fax: (630) 864-4420
Total Company Sales: $ 7.2 Billion -0.9%
Total Contract Sales: $ 3.6 Billion -0.6%
Total Retail Sales: $ 3.5 Billion -1.1%
Percentage of Sales in Exclusive Brands: 22% (E)
Principal Business: In November 2004, this company (about a year earlier acquired by Boise Cascade Corp.) sold its paper, forest products and timberland assets to affiliates of the company (who started Madison Dearborn Partners LLC). Based on its office supply business, called Boise Office Solutions, the company continued operating under the OfficeMax banner (NYSE: OMX). (Its first store was initially opened in 1988.) Today, its retail segment cover 999 stores in 48 states, Puerto Rico, Canada the U.S. Virgin Islands, and Mexico. The majority of stores are in the U.S. Its business-to-business contract business operates through 47 distribution centers and six customer service and outbound telesales centers. In Mexico, it owns 51% in a joint venture with 79 stores.
Exclusive Brand Identities: OfficeMax, TUL pen and writing instruments line; Ascend (high-quality mailing supplies); Canterbury (designer line of stationery, cards, etc.), Divoga (trendy, fashionable folders, accordion files, etc.), Infuse (high-quality dry erase corkboards and combination boards). Other premium brands: Inplacer, Inplacer System by Peter Walsh, Brenton Studio, Eastleigh, and Engage.
Total Number of Skus in Exclusive Brands: N/A
Profile: OfficeMax like its competitors suffered a poor year as a result of the weak economy, But it has recovered, pushing a $4 million loss in 2009 to a net gain of $1.7 billion this year. Nevertheless, the company continues to open new stores in the U.S., including three under a new small-format concept, called Ink-Paper-Scissors. This store concept is a 1,500 to 2,000 square foot outlet with some 2,000 skus (most popular items) versus the typical OfficeMax store of 8,000 square feet with 10,000 skus, which besides office supplies and paper includes technology products and office furniture. OfficeMax also began a collaboration with Safeway supermarkets on the West Coast, supply them with office supplies for sale at retail. Some 68% of its contract sales are in the U.S. And 94% of its retail store sales as well.
Procurement Contracts: Mike Kitz, VP Officemax Brands; Heather Vierling, Sr. Brand Manager
FAMILY DOLLAR, INC.
(Aug. 28, 2010)
10401 Monroe Rd., Matthews, NC 28105 USA
Tel: (704) 847-6961
Fax: (704) 849-2044
Total Sales: $7.9 Billion +6.2%
Percentage of Sales in Exclusive Brands: 22%
Principal Business: Organized in 1959, Family Dollar has grown to become the second largest dollar store chain (”general merchandise retail discount store”) in the U.S. Its store tally at the end of this period was 6,785 stores in 44 states and DC. Its stores (ranging from 7,500 to 9,500 square feet) sell mostly merchandise under $10. They are located in urban, suburban and rural areas. Some 65% of its product mix is now in consumables: household chemicals, paper products, candy, snacks and other foods, health and beauty care, hardware and auto supplies, plus pet food/supplies. Home products take 13.4%, apparel and accessories 11.2% and seasonal & electronics 11% of sales.
Exclusive Brand Identities: Family Dollar, Family Gourmet
Total Number of SKUs in Exclusive Brands: N/A
Profile: Family Dollar’s store opening pace has slowed from its level of 500+ per year a couple of years ago to only 180 outlets opened in fiscal 2009 and just 200 in fiscal 2010. Plans for fiscal 2011 call for 300 new store openings. Net income rose 22.9% to $358.1 million for the current year. Family Dollar continues to build its consumable product stock: household chemicals, paper products, foods, health and beauty care, pet food, etc. While only 89 stores were renovated for the year, plans call for from 600 to 800 store renoations in fiscal 2011. Private brand development remains a priority, having increased from 19% of sales last year to 22% this period. Its new Family Gourmet line of 70 food products will be doubled in 2011.
Procurement Contacts: John Scanlon, Senior Vice-President, Merchandising & Marketing; Barbara Corey, Director Private Label; Mary Rachide, DVP; Robert Smmigiel, VP Mktg.; Todd Roeder, Global Sourcing Director
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