AURELIUS subsidiary Office Depot Europe solidly on the path to sustained profitability and growth

06.12.2017

AURELIUS subsidiary Office Depot Europe solidly on the path to sustained profitability and growth

  • Comprehensive turnaround program until mid-2019
  • Stronger focus on e-commerce and customer satisfaction
  • Initial positive results of Realignment

Munich/Venlo, December 2017 – Office Depot Europe, a group company of AURELIUS Equity Opportunities SE & Co. KGaA (ISIN DE000A0JK2A8), is well on its way to sustained profitability and solid growth. AURELIUS acquired Office Depot Europe from Office Depot Inc. in America on 1 January 2017 and began an extensive realignment process with the support of all stakeholders and shareholders. The effects in terms of result thus far, as well as customer feedback, validate the shift towards a customer-centric, agile service organization and comprehensive solution provider for the modern workplace and office location.

Several key projects
The two and a half years turnaround program laid out by Office Depot Europe was implemented rigorously from day one and is flanked by several key projects. These include a focus on e-commerce offerings, expanding the customer base in important core markets, reviewing the product range and taking action to boost customer satisfaction.

Cost-focused measures
Above all, costs must be reduced in order to make Office Depot sustainably competitive. A focus on optimizing core processes, aligned with future-oriented employee capabilities; adjusting locations within the core regions; rigorous rationalization of the product offering to reduce complexity; and greater integration of online and offline business processes will be core success drivers in creating a sustained competitive cost basis. Realignment of the supplier base across the trade and non-trade categories, as well as the establishment of a state-of-the-art stocking system with variable transportation and delivery options, has brought significant cost savings and a clear reduction in product stock.

Customer-focused measures
Another major focus of the transformation is on core projects to strengthen the revenue basis long-term and improve customer satisfaction. In addition to a target group-specific realignment of sales as well as product and service offerings (“One Commercial World”), other improvement measures center on efficient and effective communication with the customer (“customer experience”) through various channels (web, voice, print, key account). To this end, all customer interface points are being adapted in order to provide intuitive, fast, service-oriented handling of all order, delivery and billing processes in the future. Results of the first pilot projects are promising, as is reflected in rising customer inquiries and incoming orders.

With these transformation projects, in 2017 the management of Office Depot Europe laid the foundation for further positive development, which will help in the implementation of all planned investments and growth measures until 2019. Office Depot Europe will use this as a basis from which to position itself as a cost-effective, customer-centric service provider for the office, with a regional focus on Europe and global reach through international partnerships on the supplier side and for its international customers.