their France Office Depot retail stores. This acquisition did not call for the closure of any existing operating facilities. Instead, Office Depot and Viking headquarters were consolidated to offer a more conveniently located headquarters. Office Depot also was able to integrate the warehousing and delivery of Office Depot and Viking brand merchandise in each of their existing warehouses. Also, internationally, 53% of total sales increases in Office Depot's International Division resulted from the start-up of their Japanese catalog operations and the consolidation of their Japanese retail operations in April, 1999. Catalog and store sales increased 6% and 20% respectively, however, unfavorable rates of exchange negatively affected these numbers. This is a continuous area of concern for Office Depot to consider as exchange rates and other competitive economic conditions which exist in international markets may impact sales in the future as well.The establishment of the Euro, the fixed conversion rate between existing European currencies, may affect their ability to price products differently in various European markets. Local taxes, customer preferences and product assortment may reduce the magnitude of price equalization. It is not likely that the Euro will have a material effect on their financial position.Besides physical store locations, one of the fastest ways to become internationally recognized and accessible is through the Internet. Currently, 20% of consumer transactions are conducted electronically. From a marketing and advertising standpoint, the Internet can offer easy and economical advertising as well as entrance into new markets. Office Depot has a great many opportunities available to them through the Internet. However, there are many similar sites on the Internet so it is vital that Office Depot maintains an upper hand by offering easy browsing and other key points. Consumers are looking for convience in the...
