Itasca, Ill., OfficeMax’s major turnaround plan will cost about $100 million, the company said. OfficeMax intends to reverse losses and boost sales by focusing on three key areas: cutting costs, improving corporate infrastructure and turning around its retail and contract businesses. As previously announced, the plan includes shuttering 110 stores.
“This is a close to $10 billion company,” CFO Don Civgin said on a conference call. “The turnaround will take time, but we are confident that 2006 will show significant progress towards our intermediate-term goal.”
The company reported a net loss of $3.9 million in the third quarter ended Sept. 24.
The company’s retail initiatives include implementing merchandising strategies intended to expand the company's small business customer base, growing Print and Document Services, driving incremental sales from the OfficeMax ink refill program, and improving category management. In retail, the company will also pursue cost-savings initiatives from store labor and management programs, as well as advertising and marketing-cost efficiencies.