SUPER Retail Group is planning to spend more in muscling up its digital capabilities as online sales surged 132% through the September quarter, and believes it is well placed to benefit from consumer trends emerging from the pandemic.
Total and like for like sales over the first 17 weeks of the 2021 financial year jumped 25% despite the impact of COVID-19 restrictions, including lockdowns in Melbourne and Auckland.
Online sales included click and collect sales growth of 123%. Click and collect represents 44% of year to date total online sales.
Anthony Heraghty, the group’s managing director and chief executive officer said Super Retail’s four core brands – Rebel, Supercheap Auto, BCF and Macpac – operate in “attractive lifestyle categories and are well positioned to benefit from increased demand for domestic tourism and leisure as well as the acceleration of the health and wellbeing trend”.
The group intends to bump up its investment this year towards digital capabilities and modernise its technology infrastructure, and now expects capital expenditure in the financial year to be approximately $100 million.
“The dynamic growth we have seen in our digital sales, through both click and collect and home delivery, has reinforced our conviction in our omni-retail business strategy and we will continue to re-invest in the business to enhance our digital capability and increase our market share,” Heraghty said.
BCF led total sales growth with a 63% increase, as online sales lifted 140%.
Rebel witnessed a 184% jump in online sales growth, lifting sales for the sportswear and equipment retailer by 16%.
Total sales at Supercheap Auto increased 22%, with 132% online growth, and while Macpac sales slipped 2% its online business rose 121%.
Group gross margin is more than 200 basis points higher than for the prior comparative period, benefiting from reduced promotional activity, particularly in Rebel, as the it manages inventory heading into the peak Christmas period.
“As Australia and New Zealand begin to re-open, we are looking forward to inspiring our customers to live their passion as they look to get outdoors, be more active and enjoy the summer holiday season,” Heraghty said.
