With trading still subdued and increasing pressure from competitors, Office Brands has mapped out a wide-ranging 'game plan' to be implemented by CEO Gavin Ward, who has now been in the chair for six months.
Addressing a strong representation of Office National, Office Products Depot and O-Net members at the group's annual conference and trade show in Adelaide last weekend, Ward said Office Brands is "redefining the way it goes to market."
The group plans to increase its online sales significantly, having grown this sector by 25 per cent following the development of its WebX platform, which is attracting up to 500 referrals a day.
"With a series of improvements to functionality and capability, we have seen some members grow their online sales by between 30 and 50 per cent," he said.
Ward also said the group planned to grow its private label business – currently stable at around 10 per cent of total sales – to around 30 per cent of turnover.
"We are a group that is committed to developing the capability to source quality China product that will improve our competitiveness in the market," he said.
Office Brands is also planning to launch a major new customer loyalty program, details of which will be released at a later date. The group is also extending its web-to-print services.
Focus on growth categories
Meantime, the group is starting to expand its range in several high-growth categories, among them: Smartphone and tablet accessories, furniture, canteen and janitorial and work wear.
Ward said a recent member survey found that the group's sales declined by around two per cent in 2011, slightly better than the industry average of three per cent, estimated by the most recent Penfold Research report.
"Two per cent sounds rather stable," he said, "but it is only part of the story. In fact, 10 per cent of members have experienced growth of more than 20 per cent while another 10 per cent of stores declined by more than 20 per cent."
See the December issue of Stationery News for a full report of the Office Brands conference and expo.
