Specialty retailer Super Retail Group says it has started the current financial year well, despite uncertain conditions in the broader retail sector.
Super Retail operates Supercheap Auto outlets, BCF (Boating, Camping and Fishing), Goldcross Cycles and Ray’s Outdoors. The company also recently acquired sports and fitness retailer Rebel Group.
Super Retail chief executive Peter Birtles said that over the last two years, the group had delivered strong growth in revenue and profitability, despite a general decline in the growth of retail spending.
“Although wider economic conditions mean that the short-term outlook for retail spending remains uncertain, we remain confident of our ability to grow our store network, deliver like-for-like sales growth and improve gross margins,” Mr Birtles told shareholders at the company’s annual general meeting in Brisbane on Wednesday.
“We have started the new year well, with our auto and cycle retailing division delivering like-for-like sales growth of 5.3 per cent, and our leisure retailing division delivering like-for-like sales growth of three per cent in the 15 weeks to 15 October.
Within the leisure division, BCF had achieved like-for-like sales growth of 5.4 per cent, and Ray’s Outdoors had like-for-like growth of 9.2 per cent since its brand relaunch in September.
Mr Birtles said the group would continue to refurbish and open new stores and enhance its online shopping sites.
The Rebel Group had an exciting future, given government-sponsored campaigns to raise awareness of sports and fitness activities, he said.
“There are 128 stores across the Rebel Group today, and we see the potential for 185 stores over the long term,” he said.
“We can apply Super Retail Group’s capabilities in product development, sourcing, range management, marketing and the supply chain to support the growth of the Rebel Group.”
Super Retail expects modest profit growth in the Rebel Group businesses in the 2012 and 2013 financial years as it invests in strategies to grow the business for the long term.
Super Retail shares ended five cents higher at $5.44 on Wednesday.
