The ODP Corporation (ODP) provides 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, online presence, and a network of Office Depot and OfficeMax retail stores.
Through its operating companies ODP Business Solutions, LLC; Office Depot, LLC; and Veyer, LLC, the company empowers every business, professional, and consume...
The ODP Corporation (ODP) provides 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, online presence, and a network of Office Depot and OfficeMax retail stores.
Through its operating companies ODP Business Solutions, LLC; Office Depot, LLC; and Veyer, LLC, the company empowers every business, professional, and consumer to achieve more.
Segments
The company’s operations are organized into three segments (divisions): ODP Business Solutions Division, Office Depot Division, and Veyer Division. The company sold its Varis Division in the fourth quarter of 2024.
ODP Business Solutions Division
The ODP Business Solutions Division, or ODP BSD, is the company’s 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 its private branded, office supply and adjacency products and services to customers, who are served through a dedicated sales force, catalogs, telesales, and electronically through its Internet websites. Adjacency products and services include cleaning, janitorial, and breakroom supplies, office furniture, technology products, and copy and print services. Starting in 2025, ODP BSD expanded its hospitality supplies categories within its adjacency products. 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 its 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 means to expand its distribution reach, target new business customers, and grow its offerings beyond traditional office supplies.
In 2024, the company continued to build on several initiatives to expand its margins, grow in adjacency product and services categories, and increase cash flows of ODP BSD, including the following:
Maintain strength in traditional office supplies by providing a customized experience for its customers, and offering differentiated value;
Expand the customer base through targeted business customer acquisitions and continued strong retention trends;
Drive sales in its adjacency categories by offering customers opportunities to save via consolidating vendors and leveraging its 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 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 an 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, as well as offering business services, including copying, printing, digital imaging, mailing, shipping, and technology support services. In addition, the print needs for retail and business customers are facilitated through its regional print production centers. The company’s Office Depot Division aims 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 its retail stores in Texas, California, and Florida. Most of the company’s retail stores are located in leased facilities that currently average over 20,000 square feet. To better serve its 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 its store closing time in all locations. The company also offers same-day delivery in selected markets.
In 2024, the company continued to build on several initiatives to drive cash flow generation from its Office Depot Division, including the following:
Expand the company’s assortment of offerings to new adjacencies relevant to its 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 its online and mobile conversion rate and average order size;
Optimize store footprint and carefully manage expenses to remain highly profitable; and
Optimize growing the company’s 5C culture, giving back to its 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 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 approximately 3,000 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, it 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.
In 2024, the company continued to build on several initiatives to drive incremental income through its 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 its DCs and crossdock facilities;
Invest in sales and marketing of the company’s third-party services.
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,’ ‘OfficeMax,’ ‘Foray,’ ‘Ativa,’ ‘TUL,’ ‘Realspace,’ ‘WorkPro,’ ‘Brenton Studio,’ ‘Highmark,’ ‘Executive Suite,’ ‘Juku,’ ‘Grand & Toy,’ and others.
Supply Chain
The company’s supply chain is managed by its Veyer Division. As of December 28, 2024, the company operated a total of 68 DCs and crossdock facilities from continuing operations in the United States, Puerto Rico, and Canada. Including the company’s satellite locations, it had over 90 facilities in its distribution network.
Merchandising and Services
The company’s merchandising and services strategy is to meet its customers’ needs by offering a broad selection of nationally branded office supply and adjacency products, as well as its 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, Executive Suite, Juku, Grand & Toy, and others.
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, hospitality 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 its 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 the majority of its merchandise through its Veyer Division directly from manufacturers, industry wholesalers, and other primary suppliers, and sources its 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 it 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 its strategy and curate the desired product assortment, shopping environment, and purchasing methods. Identifying the most desirable and effective way to reach its 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, its 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 28, 2024), 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 its 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, mass merchandisers, such as Walmart and Target, wholesale clubs, such as Costco, Sam’s Club, and BJs, computer and electronics superstores, such as Best Buy.
History
The ODP Corporation was founded in 1986. The company was incorporated in Delaware in 1986.
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