Officeworks Set to Struggle Because of One Big Problem
Officeworks sells more than 30,000 different products including a broad range of office supplies, electronic gadgets, furniture and more but the store is set to take a huge hit when Amazon launches it’s Australian operations later this year.
Officeworks has 163 stores and 7000 employees across Australia, but according to news.com.au, Officeworks has the highest online sales of any major Australian retailer by about 17 percent.
It’s because of it’s huge online success that some say is the reason Wesfarmers is seeking to offload the venture ahead of Amazon’s launch.
Barry Urquhart of Marketing Focus said; “Officeworks is the most vulnerable to the intrusion of Amazon, because a large percentage of its products are consumables with no brand loyalty,” Mr Urquhart told news.com.au.
He said a large number of its customers were small business owners who prized convenience and accessibility above all else, meaning that Amazon’s “astute” approach to delivery and customer service would leave Officeworks exposed.
“Anyone with experience in business would see that vulnerability,” he said.
And without the backing of “strong corporate support with deeps pockets like Wesfarmers”, he feared Officeworks would struggle to compete with Amazon on price.