Officeworks Thrives Despite Lockdowns
Online penetration, a new subscription model, and “customers establishing spaces to work and learn at home” during the pandemic has all resulted in a rosy FY21 for Officeworks.
Officeworks’ revenue increased 8.7 per cent for the year to $3,029 million, with earnings increasing 7.6 per cent, to $212 million.
Overall sales growth was 8.6 per cent, although a second half decline of 3.2 per cent underscored the elevated sales in the prior year, “particularly in technology products,” according to the financial report. Sales during the second half of FY21 were, however, up 24.4 per cent from 2019.
The company’s online sales, including click and collect, increased to 35.2 per cent of all business during FY21. Other changes were also successful, including the new Classroom Essentials service, a Print and Create online hub, the launch of Geeks2U subscription offering, and the upgrading of 68 stores.
Three new Officeworks stores also opened, in QLD, SA and WA, bringing the total to 167 stores.
“Officeworks delivered solid earnings growth for the year, supported by strong sales growth, despite some margin pressure from continued investment in price, changes in sales mix and higher supply chain costs,” Wesfarmers writes.
“The Group continued to provide paid pandemic leave to team members and also paid all permanent and many casual team members during prolonged lockdowns, even in the event there was no meaningful work for them.
“In addition, to support team members and the community with vaccination efforts, the Group also committed to provide paid vaccination leave to all permanent team members.
Wesfarmers also notes that it “did not receive any support under the Australian government’s JobKeeper program.”