Officeworks has set its sights on doubling its annual revenue from $20 billion to more than $40 billion with an ambitious growth plan.

 

At a recent ASX strategy presentation, the Wesfarmers subsidiary revealed that the “addressable” market for Officeworks based on its new categories and expansion plans is now $41 billion versus $20 billion with its current operation, which includes 167 stores.

 

Officeworks managing director Sarah Hunter said the retailer is set to expand into the connected home, education, arts and craft, and ‘created design’ markets.

 

The retailer is also targeting large retailers such as Harvey Norman and JB Hi Fi’s commercial operations as well as Ikea’s office supply market.

New staff pay deal

 

Meantime, Officeworks team members have supported a new store operations agreement which introduces increased base pay, new leave entitlements, higher penalty rates and the option for staff to choose their own superannuation fund.

 

Officeworks is reportedly looking at ways to boost productivity to offset an estimated $10 million increase in labour costs stemming from the new enterprise agreement that will lift store staff wages by between five per cent and 15 per cent.

 

Under a new, four-year store operations agreement, eligible store staff will receive a 2 per cent wage increase in above-award base rates for the first two years and a 3 per cent increase in base rates for the last two years.

 

For the first time in about 10 years, Officeworks will also pay 25 per cent penalty rates on weeknights (between 6pm and 11pm) and on Saturdays and will pay higher penalty rates on Sundays – 65 per cent instead of 50 per cent.

Officeworks recently introduced a new paid parental leave policy called ‘Growing Families’, aimed at better supporting its team members across the business as they grow their family.

 

New rostering system

 

Officeworks will replace a manual paper-based store rostering system with a new payroll and team management system – SAP Success Factors – making the rostering process more efficient and giving staff more visibility over their hours.

 

Hunter is reported as ruling out reducing store opening hours to cut costs, saying many Officeworks customers shopped early in the morning and late at night.

 

Hunter also ruled out changes to store replenishment, saying Officeworks restocked shelves in the morning when there were fewer customers.

 

Retailer such as Woolworths and Big W are bringing forward replenishment – restocking shelves before 6pm when customers are in stores rather than later at night – to avoid paying penalty rates.