Super Retail Group to grow store footprint following solid results

Super Retail Group has announced it will be expanding its footprint across a number of its retail brands as it continues to strengthen its store portfolio.

The company, which owns Supercheap Auto, Rebel, Ray’s Outdoors, Goldcross Cycles, BCF, FCO and Amart Sports, said it expects to continue its program of store refurbishment and store of the future trials across the group in the year head.

“We expect to be able to open around five new stores in our Auto Retailing division and around 10 new stores in each of our Leisure and Sports Retailing divisions during the year,” Peter Birtles, Super Retail Group managing director and CEO, said.

“We expect to permanently close one Ray’s Outdoors store and one Rebel Sports store and temporarily close two Supercheap Auto stores while the remaining standalone Goldcross Cycles stores will be closed.”

This comes after the company provided a solid update on trading performances for the 16 weeks to 19 October 2013 where like-for-like sales increase across the group’s three divisions: auto retailing (3 per cent), leisure retailing (5 per cent) and sports retailing (6 per cent.)

“Trading so far this year has been solid, building on the consistent delivery of strong like for like sales growth in recent years,” Birtles said. “After a pleasing start to the year, trading slowed around the federal election but has returned to plan during October.”

Birtles also said they’re on track to maintain its EBIT margin in its auto retailing division and to deliver a small improvement in EBIT margins in its Leisure and Sports Retailing divisions.

“Our Group costs will increase in the 2014 Financial Year as we ramp up the development of our multi-channel capabilities and incur costs in establishing new distribution centres in Sydney and Brisbane,” he said.

“We expect our capital expenditure to be around $110 million in the year ahead as we continue to invest in new stores and store refurbishments, fitout the new distribution centres and continue our investment in our CRM and multi-channel capabilities.”