What is Office Depot’s strategy for retaining current customers?
A. Office Depot believes it can maintain a large percentage of its customers that currently buy office supplies through the U.S. Communities cooperative by offering full and diverse alternative programs through other competitively solicited cooperative contracts, or directly outside of a cooperative arrangement. Office Depot intends to seek alternative cooperative partners with terms consistent with the Company’s long-term value strategy, including lower administrative fees. Office Depot will continue to deliver extraordinary value in the public marketplace and will provide customers with a seamless transition to the program that best meets their specific needs. Although the participating public agencies utilize the U.S. Communities cooperative program as a vehicle to purchase office supplies, these are Office Depot customers that we will continue to service through an alternative cooperative strategy, individual standalone agreements, or direct relationships.
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