Office Depot is closing in on the day when the web will account for at least one-third of total sales.
For 2006, Office Depot is reporting a 13% rise in web sales to $4.3 billion from $3.8 billion in 2005. The web now accounts for 29% of total 2006 sales of $15 billion vs. 26.6% of total revenue of $14.3 billion in 2005.
“We are pleased with the performance of our business in the fourth quarter,” says Office Deport chairman and CEO Steve Odland. “The strategic initiatives that we have implemented have led to sales growth in each of our divisions as well as lower operating expenses and expanded total company margins. This overall growth in sales and operating margin expansion was realized despite a highly promotional holiday retail environment and reduced technology sales due to the impending release of Microsoft Windows Vista at the end of January.”
To attract more web shoppers, Office Depot, No. 2 in the Internet Retailer Top 500 Guide, rolled out a redesigned e-commerce site in December. The new design leverages new reporting, analytic and other capabilities the multichannel retailer implemented on the back end over the past 18 months and then applied to the consumer interface, the company says.
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