About The ODP

The ODP Corporation (ODP) is a provider of products, services and technology solutions through an integrated business-to-business ('B2B') distribution platform and omni-channel presence, which includes supply chain and distribution operations, dedicated sales professionals, a B2B digital procurement solution, online presence, and a network of Office Depot and OfficeMax retail stores. Through the company's operating companies, such as ODP Business Solutions, LLC; Office Depot, LLC; Veyer, LLC; and Varis, Inc., the company empowers every business, professional, and consumer to achieve more every day. One of the company's largest customer groups consists of various governmental entities, government agencies and non-profit organizations, such as purchasing consortiums. The company sells a substantial number of products under the company's own brands, including Office Depot, OfficeMax and other proprietary brands where the company is the importer of record. Segments The company operates through four reportable segments (or 'Divisions'): ODP Business Solutions Division, Office Depot Division, Veyer Division, and Varis Division. The company sold its CompuCom Division in 2022. ODP Business Solutions Division The ODP Business Solutions Division, or ODP BSD, is the company's leading B2B distribution solutions provider serving small, medium and enterprise level companies, including those in the public and education sectors. This segment operates in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The ODP Business Solutions Division sells nationally branded, as well as the company's private branded, office supply and adjacency products and services to customers, who are served through a dedicated sales force, catalogs, telesales, and electronically through the company's Internet websites. Adjacency products and services include cleaning, janitorial, and breakroom supplies, office furniture, technology products, and copy and print services. This segment also includes the company's Federation entities, which are over 20 regional office supply distribution businesses acquired by the company as part of its transformation to expand the company's reach and distribution network into geographic areas that were previously underserved, and which continue to operate under their own brand names. The acquisition of these businesses has allowed for an effective and accretive opportunity to expand the company's distribution reach, target new business customers and grow the company's offerings beyond traditional office supplies. In 2023, the company continued to build on several initiatives to grow in adjacency product and services categories, including the following: Maintain strength in traditional office supplies by providing a customized experience for the company's customers, and offering differentiated value; Expand customer base through targeted business customer acquisitions and continued strong retention trends; Drive sales in the company's adjacency categories by offering customers opportunities to save via consolidating vendors and leveraging the company's national distribution footprint; Provide a highly customizable digital customer experience, including subscription services and reporting and analytic tools; Partner with key vendors to add new products to the company's assortment of offerings; and Continue the company's highly successful Federation strategy to acquire new small business customers while also expanding in underserved markets. Office Depot Division The Office Depot Division is the company's leading provider of retail consumer and small business products and services distributed through a fully integrated omni-channel platform of various Office Depot and OfficeMax retail locations in the United States, Puerto Rico and the U.S. Virgin Islands, and the company's eCommerce presence (www.officedepot.com). The company's Office Depot Division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture, and offers business services, including copying, printing, digital imaging, mailing, shipping and technology support services. In addition, the printing needs for retail and business customers are facilitated through the company's regional print production centers. The company's Office Depot Division intends to serve small business, home office, educational customers, and consumers better than anyone else can by providing a unique combination of value, convenience and customer engagement. The company has a broad representation across the United States with the largest concentration of the company's retail stores in Texas, California, and Florida. Most of the company's retail stores are located in leased facilities that average over 20,000 square feet. To better serve the company's customers and to provide more options in how they choose to shop, the company has a Buy Online-Pickup in Store ('BOPIS') offering, and a 20 minute in-store or curbside pick-up guarantee for online orders placed two hours before the company's store closing time in all locations. The company also offers same-day delivery in selected markets. In 2023, the company continued to build on several initiatives to drive cash flow generation from the company's Office Depot Division, including the following: Expand the company's assortment of offerings to new adjacencies relevant to the company's core customer segments, including arts and crafts, home office organization and decor, select greeting cards and party supplies, and small business services; Expand the company's industry-leading in-store pickup program while improving the company's online and mobile conversion rate and average order size; Optimize store footprint to remain highly profitable; and Optimize growing the company's 5C culture, giving back to the company's local communities and supporting equal opportunities in education and entrepreneurship. Veyer Division The Veyer Division is the company's supply chain, distribution, procurement and global sourcing operation, which specializes in B2B and consumer business service delivery, with core competencies in distribution, fulfillment, transportation, global sourcing and purchasing. The Veyer Division's customers include the company's Office Depot Division and ODP Business Solutions Division, as well as third-party customers. The Veyer Division also includes the company's global sourcing operations in Asia. The Veyer Division's assets and capabilities include eight million square feet of infrastructure through a nationwide network of distribution centers ('DCs'), crossdocks, and other facilities, which provides for coverage in all the key markets the company serves. The company has a workforce of team members, and a robust network of dedicated national and international carrier partnerships, supporting ocean, line haul, less than truckload and national small parcel capacity. The company has a private fleet of over 500 vehicles in the Veyer Division's delivery fleet and a nationwide last-mile delivery service. With the company's network coverage, the company can reach 98.5% of the U.S. population for next day services across multiple distribution points, whether they are retail stores, consumer homes, or businesses. The company's local and global sourcing offices in Asia select, source and purchase products each year in office product, technology, furniture, cleaning and breakroom categories, including private brands, all of which the company distributes for its customers throughout its network. These assets are supported by quality technology that supports a high level of service for the company's customers and reduces Veyer Division's operating costs. In 2023, the company continued to build on several initiatives to drive incremental income through the company's Veyer Division, including the following: Deliver exceptional service and competitive pricing to Office Depot and ODP Business Solutions to ensure they achieve their business objectives and remain highly competitive in the markets they serve; Utilize available existing capacity to attract and grow with new customers, including in the third-party logistics segment where there is demand for the company's services and capabilities; Modernize key functionality to ensure the company provides great value to its customers, for example, through automated technology and robotics in the company's DCs and crossdock facilities; Drive a low-cost business model to drive profitability; and Invest in sales and marketing of the company's third-party services. Varis Division The Varis Division is the company's tech-enabled B2B indirect procurement marketplace, which provides a seamless way for buyers and suppliers to transact through the platform's consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. In connection with the company's development efforts of this Division, the company acquired BuyerQuest Holdings, Inc. ('BuyerQuest') in 2021, a software as a service eProcurement platform company. BuyerQuest's operating results are included in the operating results for the company's Varis Division. The Varis Division serves enterprise businesses and provides its services to middle- and small-sized businesses. It is focused on filling the growing demand for a B2B centric digital commerce platform that is modern, trusted, and provides the procurement controls and visibility businesses require to operate. Intellectual Property The company operates under the brand names Office Depot, OfficeMax and Grand & Toy, as well as others. The company holds trademark registrations and pending applications domestically and worldwide for these operating brands, as well as for a wide assortment of private branded products and services, including 'Office Depot,' 'TUL,' 'Ativa,' 'Foray,' 'Realspace,' 'WorkPro,' 'Brenton Studio,' 'Highmark,' 'Executive Suite,' 'Juku,' and others. The company also holds issued patents and pending patent applications domestically and worldwide for certain private branded products, such as shredders, office chairs and writing instruments. Supply Chain The company operates various DCs and crossdock facilities from continuing operations in the United States and Canada. Including the company's satellite locations, the company has various facilities in its distribution network. Merchandising and Services The company's merchandising and services strategy is to meet the company's customers' needs by offering a broad selection of nationally branded office supply and adjacency products, as well as the company's own private branded products and services. The selection of the company's private branded products has increased in breadth and level of sophistication over time. The company offers products under such labels, including Office Depot, OfficeMax, Foray, Ativa, TUL, Realspace, WorkPro, Brenton Studio, Highmark, and Grand & Toy. The company generally classifies its offerings into four categories: supplies, technology, furniture and other, and copy and print. The supplies category includes products, such as paper, writing instruments, office supplies, cleaning and breakroom supplies, personal protective equipment, and product subscriptions. The technology category includes products, such as toner and ink, printers, computers, tablets and accessories electronic storage, and sales of third-party software, as well as technology support services offerings provided in the company's retail stores. The furniture and other category includes products, such as desks, seating, luggage, gift cards, and warranties. The copy and print category includes offerings, such as printing of business cards, banners, documents and promotional products, copying and photo services, and managed print and fulfillment services. The company buys substantially all of its merchandise through the company's Veyer Division directly from manufacturers, industry wholesalers, and other primary suppliers, and source the company's private branded products from domestic and offshore sources. As part of the company's Veyer Division, the company operates a global sourcing office in Shenzhen, China, which allows the company to better manage its product sourcing, logistics and quality assurance. This office consolidates the company's purchasing power with Asian factories, and in turn, helps the company to increase the scope of its own branded offerings. Sales and Marketing The company regularly assesses consumer shopping behaviors in order to refine the company's strategy and curate the desired product assortment, shopping environment and purchasing methods. Identifying the most desirable and effective way to reach the company's customers and allowing them to shop through whichever channel they prefer will continue to be a priority. These efforts have impacted the extent, format and vehicles the company uses to advertise to and reach customers, the company's web page design, promotions and product offerings. The company's marketing programs are designed to create and capture demand, drive frequency of customer visits, increase customer spend across product lines, and build brand awareness. The company has shifted a meaningful amount of its marketing efforts in recent periods to digital programs that increase demand generation, enhance audience targeting and include the use of social media platforms and digital videos. The company also continues to advertise through traditional outbound marketing vehicles such as e-mail, direct mail and catalogs. The company's customer loyalty and other incentive programs provide its customers with rewards that can be applied towards future purchases or other incentives. These programs enable the company to effectively market to its customers and may change as customer preferences shift. The company's customer acquisition efforts regularly shift to vehicles and formats found to be most productive for reaching the targeted customer. The company acquires customers through e-mail and social media campaigns, online affiliate connections, on-premises sales calls, outbound sales calls, and catalogs, among others. Seasonality The company's business experiences a certain level of seasonality, with sales generally trending lower in the second quarter (year ended December 2023), following the 'back-to-business' sales cycle in the first quarter and preceding the 'back-to-school' sales cycle in the third quarter and the holiday sales cycle in the fourth quarter for the company's ODP Business Solutions and Office Depot divisions. Competition The company competes locally, domestically and internationally with office supply resellers, including Staples; Internet-based companies, such as Amazon.com; mass merchandisers, such as Walmart and Target; wholesale clubs, such as Costco, Sam's Club and BJs; and computer and electronics superstores, such as Best Buy. History The ODP Corporation was incorporated in Delaware in 1986.