With the sale of Officeworks off the table I expect Wesfarmers will increase engagement with the group, to lift performance. This could mean further diversification by the group, further into areas impacting us. That is what I would do if I were them.
We already see Officeworks playing well in the social stationery space as well as some gifting, games and puzzles. Plus, they are very strong in calendars.
The extent of change already seen at Officeworks over the last two years is instructive to newsagents contemplating change. This is a reason I visit Officeworks stores regularly. There is plenty to learn – not necessarily to copy but certainly to learn.
While city newsagency businesses are most obviously impacted the most by Officeworks, regional stores are impacted too because of their strong online presence.
When able, visit Officeworks and take a close look at what they are doing. Be sure to check back regularly as the change between visits is well worth seeing. I certainly find it worthwhile.
While we are talking about Officeworks, look online at what Staples is offering. Their penetration is increasing in Australia from what I understand and it is happening mainly under the radar – because you don’t see the business they are doing.
Staples is ahead of Officeworks when it comes to funky and on-trend products. Here are two examples they have in-store in the US right now, both compelling offers, both expanding the reach of what we consider to be stationery.
