One of Australia\u2019s top executives has revealed how a crucial move behind Kmart\u2019s success is being deployed at Officeworks and influences operations at Bunnings.<\/p>\n
Rob Scott, the boss of Wesfarmers – which runs the three aforementioned companies in Australia alongside Target – revealed how Kmart\u2019s supply chain Anko is being replicated for Officeworks.<\/p>\n
Anko was established in 2019 and now provides about 85 per cent of Kmart\u2019s products.<\/p>\n
Mr Scott said Anko was a \u201creal success story\u201d and stressed the model would help deliver better value for Officeworks customers.<\/p>\n
\u201cIt’s been really exciting to be able to leverage that capability into the Officeworks business by using that sourcing capability and design capability,\u201d he told News24 Business Weekend.<\/p>\n
He also noted that Bunnings’ managing director Mike Schneider said the company had \u201clearned a lot from Anko\u201d.<\/p>\n
\u201cThe difference within Bunnings obviously is that Bunnings is quite deliberately a house of brands,\u201d Mr Scott said.<\/p>\n
\u201cA lot of the products in Bunnings really lend themselves to highly trusted brands, but there is a segment of the Bunnings product range that really does benefit from direct sourcing (and) private label.<\/p>\n
\u201cMike and the team are certainly leveraging some of that know-how from the Kmart Anko team.\u201d<\/p>\n
The shift at Wesfarmers follows the company delivering its 2026 financial year results on Thursday.<\/p>\n
Its profit was down 1.8 per cent to $2.87 billion and earnings at Officeworks dropped 22.2 per cent.<\/p>\n
Wesfarmers blamed the decline on \u201cone-off transformation costs\u201d of transitioning to Officeworks’ new Anko-like model.<\/p>\n
Despite the profit fall, Officeworks\u2019 revenue lifted 3.7 per cent to $3.7 billion.<\/p>\n
Mr Scott said the company was still aiming to keep prices down across its subsidiaries while undergoing changes.<\/p>\n
\u201cWhat we do on the pricing side is our philosophy is always to be the lowest price,\u201d he said.<\/p>\n
\u201cFor businesses such as Bunnings, Kmart, and Officeworks, we pride ourselves in everyday low prices.<\/p>\n
\u201cWe monitor prices multiple times a day in order to keep our prices low and our philosophy with everyday low price is \u2026 if we can actually achieve some cost savings on sourcing product then we want to share those benefits with our customers in lower pricing.\u201d<\/p>\n
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