OfficeMax Partners With Safeway to Provide Office Products and School Supplies to Grocery Stores
The three-Year Deal Brings New School and Office Product Selection to Safeway (DE locations) Customers and Gives OfficeMax (DE Locations)Additional Presence in Delaware.
From the Press Release:
OfficeMax® Incorporated (NYSE: OMX), today announced a partnership with Safeway Inc. (NYSE: SWY), one of the largest food and drug retailers in North America, to distribute office products and school supplies through approximately 1,600 Safeway grocery stores in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic regions of the United States.
In July, Safeway began carrying approximately 300 OfficeMax products in co-branded aisle displays, including seasonal promotional items and everyday school and office supplies. Product selections will include OfficeMax private label products such as award-winning TUL® writing instruments and various grades of OfficeMax-brand papers.
“OfficeMax continually seeks innovative channels that will bring our products to customers when they need it most,” said Ryan Vero, Executive Vice President and Chief Merchandising Officer for OfficeMax. “Our goal is to help our customers do their best work and Safeway’s expansive store presence creates a convenient access point for customers looking to replenish their favorite office and school supplies as they shop for groceries and other necessities.”
Office Max reported a large quarterly loss and anticipates continued slowing as its small business customers reduce spending. This deal gives it access to another segment of the office supplies market without expansion of it’s own brick and mortar stores. Both stocks are broadly lower since the announcement but Office Max has had some wild swings.