THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, April 26, 1996 TAG: 9604260444
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON
STAFF WRITER
LENGTH: Short : 40 lines
Office Depot Inc., the largest office-supplies retailer in the nation, plans to move into the Hampton Roads market this summer and lock horns with OfficeMax Inc.
The Delray, Fla.-based chain has signed leases for two 30,000-square-foot superstores: one in Norfolk's Military Crossing Shopping Center and another in Hampton off Mercury Boulevard.
``At this point, they've clearly made a decision to open stores in this market,'' said Gerald Divaris, president of Divaris Real Estate Inc. in Virginia Beach, which helped broker the deals.
The Norfolk store is expected to open in July, and the Hampton outlet in August. Divaris said additional stores will be announced soon, but he declined to mention locations. Real estate sources said Office Depot has been considering sites in Virginia Beach and on the Peninsula.
Office Depot officials could not be reached. Whether Office Depot will take its share from a growing market or grab sales from competitors is still unknown. Either way, it will find a rival in OfficeMax, the largest office-supplies retailer in Hampton Roads.
OfficeMax, based in Shaker Heights, Ohio, has about seven stores in Hampton Roads. It earned $125.8 million on $2.5 billion in sales in fiscal 1995, which ended Jan. 27, 1996. The company previously said it will double its capital spending to $165 million during fiscal 1996, opening at least 80 OfficeMax stores.
Nationwide, Office Depot has more than 500 superstores. It earned $132.4 million on $5.3 billion in sales in 1995. The company planned to open 75 stores this year. by CNB