Officeworks can go it alone: ex-boss Laura Inman

The former boss of Officeworks, Launa Inman, believes the stationery retailer could thrive as a stand-alone business.

Former managing director of Officeworks Launa Inman. Picture: Dylan Coker

The former boss of Officeworks, Launa Inman, believes the stationery retailer could thrive as a stand-alone business if Wesfarmers chose to spin off the company, arguing its retail model is one of the best in the sector with little local competition.

Ms Inman was managing director of Officeworks between 2004 and 2005 and, under her watch, sales pushed past $1 billion for the first time.

She said the retailer had created a strong customer base supported by a rich service culture that catered to small and medium-sized businesses as well as entrepreneurs, especially women.

“The key things are always in stock, key wanted items, but it also has products that appeal to entrepreneurs because of lot of entrepreneurs today are women and so (Officeworks) have kind of taken an element of fashion into it as well, as through their stationery and so on,’’ Ms Inman told The Australian.

“But at the same time, it is a one-stop shop for everything you need for a small business or even a medium business.’’

The infusion of fashion sensibilities and a broader pallet of ­colours for its range of office furniture and fixtures have been instrumental in its success, especially as the proliferation of home offices means small business owners and sole traders are looking for functional office furniture that is colourful and modern.

Officeworks managing director Mark Ward has often joked that in the old days customers could have whatever colour chair they wanted as long as it was black.

Last month, Wesfarmers, which bought Officeworks along with Coles, Kmart and Target after the break-up of Coles Myer in 2007, surprised the market by announcing it was reviewing the future ownership of Officeworks, which could include a trade sale or IPO worth as much as $1.5bn.

“It was a surprise that they were going to split it off,’’ Ms Inman said.

“But I do understand it. It is a very successful company, (it) doesn’t have a lot of competition, and ­depending on what Wes­farmers’ needs are, it’s a really ­successful company at its peak, so it’s a very good time to actually float it.

“If Wesfarmers were going to do something, they would do so because it made good financial sense. They are very disciplined how they approach those things.’’

Ms Inman said Officeworks could certainly stand on its own two feet, outside the Wesfarmers conglomerate.

“It’s got a good long-term ­future, so they will get a good price for it. It’s well run, it’s stable and it is very consistent as to what it delivers to the consumer — it never changes, and that is actually what consumers love about it.

“If you go overseas and look at Staples and other organisations, on which it was originally modelled, they are successful, but they have also had their own difficulties, and in my view I would (rate) ­Officeworks as a good as any of those organisations overseas.’’

For the December half, Officeworks reported a 5.1 per cent lift in earnings to $62 million. Revenue increased 5.9 per cent to $927m. In the 2016 financial year, pre-tax earnings hit $134m, while revenue was $1.851bn.

“When I was running Officeworks we just topped a billion dollars in sales and I think it’s now around $1.8bn, and it’s a very ­successful business — it has phenomenal opportunities,’’ Ms Inman said.

Ms Inman, who is also a director of Commonwealth Bank and Super Retail Group, last week resigned from the board of infant milk formula company Bellamy’s and so has some extra room on her corporate dance card.

But she declined to comment on whether she could make a ­return as a possible director or chairwoman of an ASX-listed ­Officeworks. “I certainly know the business, but it hasn’t even be floated yet,’’ she said.