Super Retail Group sales growth slows and chief executive Peter Birtles to step down next year

UPDATED: Slowing sales and the impending departure of its chief executive led to an almost 11 per cent plunge in Super Retail Group shares.

Super Retail Group outgoing CEO Peter Birtles.

SLOWING sales and the impending departure of its chief executive led to an almost 11 per cent plunge in Super Retail Group shares on Wednesday.

At the Brisbane-based company’s annual general meeting, chair Sally Pitkin shocked shareholders with the news popular CEO Peter Birtles would retire next year.

Mr Birtles’ departure date has not been confirmed, but was flagged to be in the June quarter, with an extensive search for a replacement underway.

Mr Birtles told shareholders that while he had “mixed feelings” over his impending departure after more than 17 years with the company, and more than 12 in the top job, he and the Super Retail board had ultimately agreed on the decision.

“It’s a pretty long stint, certainly compared to the average of CEOs on the ASX,” he said. “Although it is hard to step back, it is important that every organisation benefits from leadership renewal.”

Dr Pitkin said Mr Birtles had assured the board he would retain his strong focus on running the business until his successor is in place. Also yesterday Super Retail revealed all its four divisions reported growth in the first quarter, though growth numbers were slightly down compared to last financial year.

The Supercheap Auto division recorded sales growth of 4.1 per cent for the 16 weeks to October 20, while like-for-like sales increased 3.1 per cent. Rebel sales climbed 4 per cent, and 2.4 per cent on a like-for-like basis, while BCF’s total sales gained 1.7 per cent and 2.4 per cent on a like-for-like basis.

The newly acquired Macpac’s total sales for the 20-week period gained 17.6 per cent and were up 8.4 per cent on a like-for-like basis.

By comparison, for the first 16 weeks of last financial year, the auto retailing division posted sales growth of 6 per cent, BCF sales were up 7 per cent and the sports division’s sales climbed 5 per cent.

But Mr Birtles said it was a solid start to the financial year.

“There are some signs that the retail consumer is being more cautious so it will be very important that our businesses get the balance right between driving sales and managing margin as we move into the major trading period of the year,” he said.

“We have reached a major milestone with all of our businesses now operating on a new digital platform. We are now focused on utilising the platform to provide a more engaging online offer to our customers including the ability to provide access to a much wider range of products than we can carry in our retail stores.”

He said the company was very pleased with the continuing strong performance of the Macpac business.

“The integration of the Rays business into Macpac is continuing in line with plan and we anticipate the nine Rays stores converting to Macpac Adventure Hub stores in the fourth quarter of the current financial year.”

Super Retail shares closed 10.9 per cent down at $8.33 on Wednesday, wiping more than $200 million off its market value.