Australia’s independent office products dealer channel is in danger of being swamped by Officeworks unless it combines resources to become a more formidable competitor.

 

In an interview with Office Products International, Darren Hayes, CEO of Perth-based Quick Corporate Australia and a director of dealer group Office Choice (pictured), said there was a sense of déjà vu about the rise of Officeworks, which has impacted the office products sector in the same way that parent Wesfarmers’ Bunnings chain has decimated the ranks of independent hardware outlets.

 

Hayes, who at one time owned one of Australia’s largest Mitre 10 hardware stores, said the independent dealer channel needed to “take the blinkers off” and look to leverage its combined power to become the “saviour” of the industry.

 

“Small dealers have real trouble trying to be price competitive against such a big business. What they lack is large logistics capabilities – warehouses where they can hold their stock and deliver from. If independents which are organised in the two dealer groups, for example, were to unite, join forces and work together in terms of logistics, I believe it would be of real benefit for the industry and open up the market,” he said.

 

Asked if rival dealer group Office Brands should be part of the equation, Hayes said his personal opinion was that Office Choice could do it within its own right. 

 

“But why not join forces with Office Brands? You wouldn’t have to change names and could run as two different branded channels with whatever you feel is your own personal offering I have seen this strategy played out in the telecommunications market. 

 

“We’d actually be bigger than Complete Office Supplies and it would put smaller independents in a formidable position to really scale up,” he said.

 

Hayes said it was clear that Officeworks, while geared to the retail sector, was expanding its already strong presence in the B2B sector.

 

In 2020, Officeworks’ revenue was up 20.4 per cent to $2.8 billion, thanks to the significant demand for technology, home office furniture and learning and education products.

 

Hayes said there was potential for the independent dealer channel to generate sales in excess of the estimated $250 million sales attributed to privately-owned COS, which is second in turnover to US private equity-owned corporate dealer

Winc.

 

.