Officeworks is now selling Sony TV’s a move that ChannelNews understans has upset both Harvey Norman and JB Hi Fi, with some tipping a major price war spanning office products traditionally sold by Officeworks.
Officeworks is currently ranging three models of Sony TV’s they include a 43 32”- and 50-inch TV in an effort to take share away from JB Hi Fi and Harvey Norman, with insiders tipping it as a dangerous move as Sony’s mainstream TV business is struggling at mass retailers.
The 50″ Sony TV is selling at Officeworks for $999 while the 43″ is selling for $895 and the 32″ inch $495, the TVs are not actually manufactured by Sony with the Japanese Company often using TCL and Skyworth to manufacture their value TVs.
Some insiders are currently calling for a Federal Government review of prices charged by Officeworks for products such as printers, printer inks, notebooks and stationery following an investigation into Supermarket pricing and price gouging by major retail chains.
Officeworks is owned by Wesfarmers who also own Bunnings, Kmart and Target they were also a major shareholder in Coles.
We understand that Harvey Norman is planning major discounting of office products, in response to the move.
Sony large screen TV sales at Harvey Norman and JB Hi Fi are down over 20% this year, with Sony insiders telling ChannelNews that Sony management who have a history of selling direct on their own web site are not happy with the margins that mass retail partners are demanding to sell their TV’s and that Office
ChannelNews understands that the decision to range small Sony TVs was taken by Officeworks buyers who are believed to be chasing a larger share of the home office market.
One observer said, “This move will start a price war, traditionally Officeworks has operated in the business and home office market, now they are moving into the mass CE market traditionally serviced by Harvey Norman and JB Hi Fi, and this is dangerous for them”.
“Both Harvey Norman and JB Hi Fi have the buying power and the know how to strip margins away from categories where Officeworks has in the past dominated. I suspect that we will see discount advertising soon for notebooks, printers, and inks from the big retailers as they take Officeworks on”.
None of the retailers have commented.