Office Works Grows Sales Target & K Mart Go Backwards
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Wesfarmers has reported that their Officeworks operation grew sales 3.6% during the last quarter. Revenues rose from $391 million to $405.

Meanwhile their Target oeration who have moved to expand their range of consumer electronics goods reported flat total sales for the period with strong transaction growth in apparel and homewares offset by lower volumes in electrical categories the Company said.


 Kmart’s total sales declined by 2.5 per cent in the quarter as the business continued to invest inlowering prices on everyday items. Despite strong overall volume growth, sales in the period were partly suppressed by seasonal clearance activity, as well as lower sales in categories that were previously highly promotionally driven as the business refined its everyday low price offer.”


Managing Director of Home Improvement and Office Supplies, John Gillam, said the focus in the business continues to be on enhancing the customer experience, network expansion and business improvement.

“The business is positioned for further sales growth, leveraging significant work undertaken over the last 18 months to strengthen our three strategic pillars of price, range and service,” Mr Gillam said.
During the third quarter seven trading locations were opened; one Bunnings warehouse, three smaller format stores and three trade centres.

Office Supplies
Total sales for the third quarter4 were $405 million, up 3.6 per cent on the previous corresponding period. Retail sales across the Officeworks store network grew by 4.7 per cent which was underpinned by a continuation of strong transaction growth.

 

During the financial year to date, total sales of $1,111 million, were up 5.5 per cent. Retail sales across the Officeworks store network increased by 6.4 per cent over the same period.
Trading through the key back-to-school period was somewhat subdued and operating conditions for smaller business customers remains challenging.

Mr Gillam said that the business continued to work hard on improving the customer offer whilst expanding and renewing the store network, despite the difficult market conditions.
During the third quarter, two Officeworks stores were opened.

Mr Goyder said that the Group was pleased with the progress made by all divisions on improving operating standards, delivering better value to customers and enhancing the customer experience. All retail divisions continue to invest in their store networks to ensure that they are well positioned for future growth.