Office Depot sees promise in Windows Vista

NEW YORK (Reuters) - Microsoft Corp.'s (MSFT.O: Quote, Profile, Research, Stock Buzz) Windows Vista Operating system still holds promise for Office Depot Inc. (ODP.N: Quote, Profile, Research, Stock Buzz) despite a rocky first-quarter start, the retailer's president of North American retail said.

"It has had some mixed response from consumers," Chuck Rubin said at the Reuters Consumer and Retail Summit here, about the system that Office Depot partly blamed for lower-than-expected sales in the first quarter.

"Initially there was some reservation due to the system requirements its needed .... We believe that over time, especially given our core customer, there's an upside."

Rubin also said Office Depot -- the world's second-largest office supplies retailer behind Staples Inc. (SPLS.O: Quote, Profile, Research, Stock Buzz) -- is focusing more closely on growth from within, rather than through acquisitions.

"Organically we're more focused on driving our business," Rubin said on Monday. "Where an acquisition would make sense from a shareholder standpoint we would consider that. We don't believe we need to rely on acquisitions to drive growth."

To help spur organic growth, Office Depot will continue the expansion of its private label business, introducing new brands throughout the year, Rubin said.

The Delray Beach, Florida-based company will also continue to tinker with the "Geek Squad," Rubin added.

"We offer tech services all around the country. We think the customer wants this," Rubin said. "Now the question is, 'How do we best deliver?'"