Officeworks is feeling the impact of "challenging" trading conditions with a meagre 0.3 per cent increase in sales in the first quarter.
Total sales for the quarter were $362 million, up from $361 million reported for the previous corresponding period.
"Officeworks recorded good growth in online sales, offsetting challenging conditions associated with a subdued trading environment for many of its small to medium-sized business customers and high levels of deflation in technology related categories," said Wesfarmers' home improvement and office supplies managing John Gillam.
"In line with Officeworks' 'every channel' strategy, online sales recorded strong, double-digit growth for the quarter, while store sales declined by 0.2 per cent," he said.
Gillam said the business was "working hard" to improve its every channel offer to customers in order to offset challenging trading conditions.
"Expanding and renewing the store network while continuing to invest in the online offer remained key areas of focus," he said.
Gillam said the business continued to make good progress in expanding its presence in the B2B segment of the market.
During the quarter five Officeworks stores were opened, taking the total to 144 nationally.
Officeworks trumpets Windows 8 price-point
Officeworks has trumpeted its 'lowest prices' strategy by offering the newly-released Windows 8 software for $48.72, which is claimed to be around $10 lower than the price being quoted by its retail competitors.
Officeworks technology business manager Toby Watson said: "Along with being one of the first companies to offer it to Australians on pre-order, we also guarantee that our copies of Windows 8 will be sold at the lowest price."
"This guarantee does not just stand today but every day. If customers ever happen to find a cheaper advertised price on Windows 8 that's in stock with one of our competitors, not only will we match it, we'll beat it by five per cent," he said.
