Powered by the growth of Officeworks and Bunnings, Wesfarmers group reported a 60 per cent increase in online sales year to date. Bunnings recorded over 19 per cent growth in the second half compared to 5.8 per cent in the first half. Officeworks clocked over 27 per cent growth against 11.5 per cent growth in the first half.
The COVID-19 driven shift towards online shopping meant its online marketplace Catch delivered a stellar 68.7% sales growth in the second half compared to 21.4% in the first half.
Catch’s growth in its gross transaction value would be music to the ears of the new boss whom Kmart recruited from Amazon. Mr Pete Sauerborn was VP in charge of Selling Partner recruitment and development at the Seattle-based giant.
Talking about his new employer, Mr Sauerborn had said “The Catch team has built an impressive e-commerce business to serve Australian consumers. The opportunity to help scale the business to the next level.. is very exciting”.
Unveiling the update, Wesfarmers Managing Director Mr Rob Scott thanked the team members: “Team members across the Group had made a significant contribution and shown great dedication in meeting the extraordinary challenges faced over recent months”. Coles group recently announced recruiting Walmart talent to lead its digital business.
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Sales growth reflects the significant investments across the Group in respective e-commerce capabilities in recent years as well as greater customer preference for shopping online during COVID-19.
Managing Director Rob Scott
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Bunnings, Officeworks soar in the second half
Bunnings recorded over 19 per cent growth in the second half compared to 5.8 per cent in the first half. Wesfarmers said, “the strong sales performance is supported by continued growth in consumer and commercial markets across all major Australian trading regions and in all product categories”.
Earlier this year Bunnings announced setting up Offshore Technology Centre in the famed technology hub of Bengaluru in India. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings’ technology edge.
The leading retailer had also announced an additional $10mn budget for the data and analytics initiatives enhancing productivity and inventory optimisation. Technology investments increased with the writing off of legacy eCommerce platform assets and accelerating the rollout of Bunnings’ online offering.
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Mr Scott said Officeworks sales growth is supported by continued demand for technology, home office furniture and learning and education products.
The massive increase in sales was attributed to the COVID-19 impact of lockdown restrictions which meant more people working and learning at home. However, Wesfarmers is uncertain of similar growth going forward.
“Given the significant changes to the usual customer shopping patterns and expected future changes to government measures, it is uncertain whether the higher levels of sales growth will continue for the remainder of the calendar year, said Mr Scott.
