Regardless of which channel our customers choose when buying their office supplies and services, we are committed to making Office Depot a more compelling place to shop. In doing so, we are seeking to improve our selection of products, launch valuable new “business solutions” services, and boost the overall level of customer experience at every single touch point.

To achieve this goal, we have undertaken an aggressive plan to make customer service our top priority and to enhance service delivery across all of our channels. You might say we’re fanatical about service, and we intend to further our reputation for providing the finest customer care in the industry.

We have also begun to re-energize our North American Retail stores, so that we can make Office Depot a more appealing destination for small and medium-sized business. During our business review, CEO Bruce Nelson and other Office Depot officers visited our stores, examined them through the eyes of our various customer segments, measured customer service levels and determined how to improve what we offer our customers.

Based on our findings, we have taken several specific steps to reinvigorate our stores, improving such elements as lighting, signage, store layout and broadband Internet capabilities. We have also accelerated the chainwide rollout of attractive new services like UPS shipping centers, where customers can bring packages to be wrapped, packed and shipped. We’re trimming the size of some of our new stores so we can better meet the needs of our customers in targeted metropolitan areas. In addition, we’re placing greater emphasis on stocking the products that our customers request most often. We expect these efforts and others to yield more appealing Office Depot stores that are located in the right places, and that carry the right products at the right prices.

As more and more customers go online, our Internet businesses have become a rapidly growing profitablepart of our operations. To optimize this exciting new channel, we have redesigned our award-winning Web site, www.officedepot.com, to showcase a number of new value-added products and services, including an online business services center, which we believe will boost Internet sales and attract small business customers. We are also forming strategic marketing alliances with Internet partners who can give us access to new customers, and provide valuable products and services to our existing customers. In addition, we are increasing our international Internet presence, steadily launching more Office Depot and Viking Web sites outside of the United States to serve the needs of our growing international customer base.

No matter where our customers shop—whether in our stores, catalogs, through sales representatives, or on the Web—we are keenly focused on making Office Depot a more compelling place to shop. Our goal is to position ourselves so solidly with our customers that when they think of office supplies and services, they think exclusively of one source: Office Depot.