Wider education market on the retailer’s radar.

 

With annual sales in excess of $2 billion and a track record of consistent revenue increases, one of – if not the biggest – problem Officeworks’ management faces is how to keep growing the business.

 

Officeworks’ game plan for the next few years was outlined earlier this month at the parent company’s 2022 strategy briefing day, during which managing director Sarah Hunter identified key growth strategies. 

 

One area attracting more of the retailer’s interest is the education market, which is being exploited through a bulk ordering service called Classroom Essentials.

 

The B2B education channel in Australia is an estimated to be worth around $2.5 billion and the company already has around 1.2 million students, parents and teachers as customers on its B2C platform. 

 

Nearly 200 schools have selected Officeworks as their main supplier in what Hunter called a “slow and steady” entry into this market, where the company is “scaling its offer” and expanding beyond primary schools to secondary schools.

 

Around 1500 new lines have been introduced with 56 per cent more space dedicated to art and craft and 29 per cent more for education.

 

Officeworks now has more than 9000 products in its own brand ranges (including J Burrows, Keji, Kadink, Studymate and Otto) with 80 million units sold in the past 12 months. Most of the furniture products it sells are own brand.

 

A dedicated platform called Flexiworks was set up in March to service companies that have staff working from home all or some of the time. 

 

Store renewals have been completed in 81 Officeworks locations over the past 18 months, with 69 further outlets to be refreshed this year. 

 

The company has also taken steps to modernise its customer fulfilment centres (CFC) to increase capacity and efficiency – the Victorian facility is now operational with WA online from 2023.

 

VIDEO

Click here to see the Victorian CFC, which handles 10,000 orders each day, in action:

https://www.wesfarmers.com.au/strategy-videos-JUN22

 

MAIN PHOTO: Officeworks MD Sarah Hunter with Eastern Creek store business manager Paul Mackenzie, at the store opening earlier this month.