Officeworks sales top $3.6b with more to come
The big blue box is coming after tech, B2B and education rivals.
Under the decisive leadership of John Gualtieri (pictured), Officeworks has quickly demonstrated that it is prepared to spend money to make money,
Officeworks’ revenue increased 3.7 per cent to $3,698 million for FY26 while earnings decreased 22.2 per cent to $165 million.
The profit slide was largely due to one-off transformation costs including restructuring activities to reset the cost base, costs associated with the replacement of the retailer’s legacy ERP system and strategic clearance activity to support the introduction of new and expanded ranges.
Since taking over last year, Gualtieri has engineered Officeworks’ strategic direction and commenced a multi-year transformation program, focused on Officeworks becoming a low-cost operator, resetting merchandise and value fundamentals and creating omnichannel experiences.
Officeworks said it accelerate growth by being the “first choice” for complete technology solutions and being the market leader in B2B and education.
Earnings in financial year 2027 are expected to show a “meaningful improvement” as the benefits from a lower cost base provide a foundation for improved performance, partially offset by further one-off transformation costs.
The transformation story so far:
- Established the Officeworks-operated global capability centre (GCC) in India
- Launched the Customer Contact Centre in the Philippines through third-party partnership
- Commenced the restructure of the Australian support office to drive operational efficiencies
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Commenced strategic operational procurement reviews
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Commenced the rollout of AI solutions across stores, supply chain and support office
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Rationalised slow-moving brands and products to simplify the customer offer
- Reinvested productivity gains to fund product price drops, enabling price leadership
- Commenced transition to Anko Sourcing
- Expanded digital reach by launching on Kmart and Uber Eats marketplaces
- Launched sub-one-hour delivery
- Commenced trial of a small-format Officeworks Tech concept in a high-traffic shopping centre
- Launched first tranche of a new instore service model, deploying dedicated technology specialist team members
- Expanded into high-growth categories, including smart home, health technology, gaming and pop culture and collectibles
- Scaled the Officeworks for Business (O4B) loyalty program
- Launched the Officeworks for Education sub-brand, creating a unified destination for schools, teachers, students and parents
- Accelerated commercialisation of retail media, with more than 150 suppliers onboarded
The next steps:
- Win as the first choice for complete technology solutions
- Be the unquestionable leader in B2B and education
- Accelerate adoption of AI and digitisation of business processes
- Complete the enterprise resource planning upgrade
- Reset merchandise and value fundamentals
- Progress transition private brand sourcing to Anko Sourcing to unlock innovation and cost benefits
- Increase private brand penetration
- Build deeper partnerships with core national brand suppliers
- Accelerate retail media growth across all channels
- Continue expanding into adjacent categories
- Consolidate underperforming stores and open five net new stores in the 2027 financial year
Date Published:
1 September 2026