Our commitment to retailing basics means delivering clean, well-staffed and well-stocked stores with appealing layouts, quality merchandise and great values for our customers—every day. Office Depot prides itself on its in-stock position, and during 1999 we were in-stock on more than 99% of our merchandise at any point in time. Our stores are replenished daily by one of the Company’s ten cross-dock facilities and are restocked each night to ensure merchandise availability for our customers.

The goal of Office Depot’s merchandising effort is to select, source and stock the highest quality products at the lowest cost. With 825 stores and 30 customer service centers in North America, Office Depot buys and stocks more merchandise than any competitor in our industry, positioning us to negotiate superior discounts and guarantee supply. Over the years, we have combined our unparalleled purchasing power with our ability to build strong vendor relationships, enabling us to pass along lower prices to our customers.

In addition to these efforts, our Stores Division will continue to update, refresh and mold its assortment of office supplies and services to meet the changing needs of our customers. Office Depot’s merchandising and marketing teams will support our outstanding product offerings by continually developing programs to enhance sales, including introducing new presentation techniques, signage and selling aids. We are confident that our Stores Division’s strategy for the future will ensure that Office Depot remains North America’s office supplies provider of choice.