OfficeMax partners with IBM

Discount Store News, Feb 8, 1999

SHAKER HEIGHTS, OHIO--In an effort to distinguish itself in its market and return profitability to computer sales, OfficeMax last month said it will become the exclusive outlet for IBM personal computers, laptop computers, monitors and servers though a new IBM "store-within-a-store" concept. The concept will be rolled out in 30 stores in six markets in April and run through October. Half the markets will feature IBM sales personnel in OfficeMax stores; the other half will include specially-trained OfficeMax associates.

This concept could potentially be expanded throughout the chain during the next 12 to 18 months. Under terms of the agreement, OfficeMax will phase out its own computer assortment in the test markets. During the test period, the new program will be located in a prominent position near the front of the store. As a result of this initiative, OfficeMax said it expected to take a $47 million to $49 million charge in the fourth quarter ended Jan. 23 to cover the cost of realigning the computer business segment, which will be reported separately from its core business segment of office supplies, furniture, business machines, peripherals and CopyMax printing services.