Home workers drive sales of tech products and furniture.

 

The upsurge in people working from home due to the COVID-19 crisis has been reflected in a significant increase in sales at Officeworks. 

 

A trading update from parent company Wesfarmers revealed Officeworks’ revenue in the period January-May was up nearly 28 per cent on the same period last year after continued strong demand for technology, home office furniture and education products. First half sales were up 11.5 per cent.

 

Wesfarmers said Officeworks will see its second-half earnings growth weakened by changes in sales mix and continued investment in price, team, technology, and COVID-19-related operating costs.

 

While Wesfarmers didn’t break out e-commerce growth at Officeworks, it said online sales across its retail portfolio – which also includes Bunnings, Kmart and Target – had jumped by 89 per cent in the January-May 2020 period.

 

The acquisition of e-commerce marketplace Catch last year has added $500 million to the company's top line.

 

Wesfarmers cautioned that it is uncertain whether the higher levels of sales growth will continue for the remainder of the calendar year, given the significant changes to usual customer shopping patterns and likely changes to government measures.