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To: steve harris who wrote (99721)	2/23/2000 4:49:00 PM
From: Diamond Jim	Read Replies (1) \| Respond to of 186894

"Office Max/Gateway is BIG!" Hey is it as big as Compaqs at Radio Shack? That almost put Dell under<g> jim

To: steve harris who wrote (99721)	2/23/2000 5:09:00 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Steve, RE:"In order to create value for shareholders, we needed to change the way (we do business)," said Mike Weisbarth, OfficeMax vice president. "The computer segment (has) been losing money for the last several years. (This way we) still offer a strong computer brand but we're not necessarily in the business of losing money." Max took em to the cleaners. If the computer segment has been losing money with an expert retailer, think what it will do with Gateway in charge. RE: "Gateway will be responsible for all sales through the stores and will essentially rent the space from OfficeMax." It's called slotting fees. RE: "had recently ended a store-with-a-store trial with IBM Corp. (NYSE: IBM - news)." An already failed strategy. Max is getting rent on previously unprofitable space, plus, what was it, a $50,000,000 investment. For this they are giving up a profit negative category, and probably getting a few margin points off each sale. What a deal! John