OMX has laid off all highly paid and skilled employees and is left with "supervisors" that make very close to min. wage. Now OMX is in an industry that is highly service oriented. A company can not keep good employees by keeping wages at a bare minimum. Just look at the retail locations, turnover rate is extremely high. But how can it be? We're in a really bad economy you say.
This company just does not get it. The pay is not competitive so you see mass exoduses to employers that actually respect human beings.
So what is the company left with? Employees that do not care thus we get horrible service and thus declines in sales and profit.
What does this mean in the long run? This company can not be sustained and will go out of business.
"Domestic and international office products markets are highly and increasingly competitive. Customers have many options when purchasing office supplies and paper, print and document services, technology products and solutions and office furniture. We compete with contract stationers, office supply superstores including Staples and Office Depot, mass merchandisers such as Wal-Mart and Target, wholesale clubs such as Costco, computer and electronics superstores such as Best Buy, Internet merchandisers such as Amazon.com, direct-mail distributors, discount retailers, drugstores and supermarkets, as well as the direct marketing efforts of manufacturers, including some of our suppliers."
All of these competitors listed are better poised for growth than OMX.
Target is currently expanding its locations including two locations in San Francisco in the near future. These will encroach on high volume OMX stores as well as Best Buy, and Office Depot but that is besides the point. Why shop at an office supply store when you can get all your shopping done at Target? Its a one stop location and you get cheaper prices.
As these super companies expand their locations we will see revenue drop dramatically at OMX store locations.
Read their 10-K for yourselves. The company is basically crying about how they can't compete with competent companies.
"Intense competition in our markets could harm our ability to maintain profitability."
"Current macroeconomic conditions have had and may continue to have an impact on our business and our financial condition"
"Our business may be adversely affected by the actions of and risks associated with our third-party vendors."
"We may be unable to generate additional sales through new distribution opportunities or replace lost sales."
"We may be unable to attract and retain qualified associates. We attempt to attract and retain an appropriate level of personnel in both field operations and corporate functions. We face many external risks and internal factors in meeting our labor needs, including competition for qualified personnel, prevailing wage rates, as well as rising employee benefit costs, including insurance costs and compensation programs. Failure to attract and retain sufficient qualified personnel could interfere with our ability to implement our strategies and adequately provide services to customers. "
"We are more leveraged than some of our competitors, which could adversely affect our business plans. "