Office Depot History

Office Depot is a Fortune 500 company, and one of the largest retailers of office supplies and equipment. Its primary competitors in America are Staples and Office Max. Office Depot has retail stores throughout the United States and also sells billions of dollars worth of products through direct to business sales. The company also sells, either directly or through affiliated companies, to 48 countries worldwide.

Founding

Office Depot was founded in Fort Lauderdale, Florida in 1986 by Pat Sher, Jack Kopkin and Stephen Dougherty, with Sher serving as the CEO. Within a year, the company had opened two additional stores and had sales of $200 million. In 1988, the company went public with an IPO under Chairman and CEO David Fuente, who was brought in after Sher's untimely death from leukemia. From that single store in 1986, Office Depot grew to more than 170 stores by 1990 when it merged with The Office Club, Inc. The merger made Office Depot the largest office supply and equipment retailer in America.

Growth

The company's aggressive growth came to a head in 1997 when the Federal Trade Commission (FTC) blocked Office Depot's proposed purchase by national competitor Staples, Inc. on antitrust concerns. However, the company expanded into online sales with its officedepot.com website, aided by its acquisition of Viking Office Products, a mostly catalog-based retailer.

Time Frame

In 1999, the company's stock was added to the S&P 500 index. But, the company's growth and revenue slowed in the late 1990s, and CEO David Fuente was moved aside for Bruce Nelson in 2000. In 2001, Office Depot closed 70 stores in an attempt to restructure its operations. However, the company worked aggressively to increase its international sales. In addition to the Viking Office Products acquisition, Office Depot acquired Guilbert S.A, in 2003 and Allied Office Products in 2006.

Size

According to the company's 2008 Annual Report, Office Depot operates 1,267 stores in North America, although the company anticipated opening 15 new stores and closing 118 existing stores in 2009. Office Depot does business directly through subsidiaries in 38 countries around the world and another 10 through various alliances. Office Depot ranked 179, on the 2009 Fortune 500 list with revenue of nearly $15 billion.

Today

Office Depot is listed on the New York Stock Exchange (NYSE) and is part of the S&P 500 Index. It operates more than 1,600 stores worldwide and employs more than 49,000 people across all divisions and subsidiaries.