Good Days at the Office

OfficeMax Inc. (Shaker Heights, Ohio) announced an 8.5 percent increase in U.S. same-store sales for its fourth quarter 2002 ending Jan. 25, 2003. The company said this represents its fifth consecutive quarter of same-store sales improvement.

For the full 52-week period in fiscal 2002, same-store sales increased approximately four percent.

“Throughout the fourth quarter, during a very difficult economic environment, OfficeMax achieved major gains in the number of same-store customer transactions and increases in the average amount per transaction, both of which fueled our industry-leading same-store sales results,” said chairman and ceo Michael Feuer. “We attribute these substantial gains to the long-term programs that we completed over the past three years, [including] the development and installation of state-of-the-art supply chain management and computer systems, store execution programs including an emphasis on associate training, more effective merchandise presentations, and focused marketing tactics that are allowing us to gain market share with the core business customer while maintaining gross margin dollars.”

Feuer said the company would capitalize on its strong financial position. “Beginning in the fourth quarter,” he said, “all new OfficeMax superstore openings incorporated the company's latest 20,000-square-foot prototype, reduced from its previous 23,500 square- foot layout. This year, OfficeMax plans to open a relatively small number of new superstores but will remodel over 250 existing outlets.

“The company is also developing a new store initiative, internally dubbed 'Project Phoenix,' focusing on a 4000- to 7000-square-foot format that will be an offshoot of its current small footprint PDQ store, which includes its high-margin CopyMax print-for-pay operation.” The Phoenix concept will be tested in the second half of this fiscal year in new environments and venues.

OfficeMax, number three in the office supplies retailing industry, operates nearly 1000 superstores in 49 states, Puerto Rico, the U.S. Virgin Islands and Mexico.