The ratings on Delray Beach, Fla.-based Office Depot Inc. reflect the company's solid position in the North American office products industry, diverse distribution channels, recent operating improvement, and adequate financial measures. However, the U.S. office supply industry is mature, which has caused key players to increase their focus on new, riskier markets, particularly in Europe. Office Depot is a leading supplier of office products, with $13.6 billion in sales in 2004. Office Depot also holds a leading position in the U.S. mail-order and contract stationer businesses, which together represent about 30% of the company's consolidated sales. North American retail same-store sales grew 1% in the first quarter of 2005 and 3% in 2004, from corresponding year-earlier periods, after declining 4%
