Super Retail Group rebounds strongly with reopening economy

Super Retail Group, whose chains include Rebel, Supercheap Auto and BCF, has seen sales quickly rebound after the economy reopened.

Super Retail’s Supercheap Auto chain reported the strongest uplift for 2020, with total sales up 7.6 per cent and like-for-like sales up 6.3 per cent.

Super Retail Group, whose chains include Rebel, Macpac, Supercheap Auto and BCF, has confirmed that consumers, fresh out of lockdown and home isolation, have turned their attention to getting fit, working on their cars and updating their fishing equipment as the retailer’s sales quickly rebounded after the economy was opened up.

A number of retailers spanning fashion, apparel, jewellery, food delivery and consumer electronics recently updated the market to reveal that pent-up demand for discretionary goods during the peak of COVID-19 restrictions had been unleashed since June as shoppers began spending again.

Shares in Super Retail rallied more than 10 per cent on Friday to be the best-performing company in the S&P/ASX 200 after the company reported stronger-than-expected sales in the last few months of the financial year as consumers spent on gym equipment, sports gear and car projects.

The company said restrictions around the country had led to a significant uplift in domestic tourism and travel, personal fitness and outdoor leisure activities that had fed through to its stores.  

Super Retail is now expecting total revenue for 2020 to be $2.82bn, up from $2.71bn in 2019, EBITDA of $327m-$328m, up from $315m in 2019, and normalised net profit of $153m-$154m, against $153m in 2019.

Its Supercheap Auto chain reported the strongest uplift for 2020, with total sales up 7.6 per cent and like-for-like sales up 6.3 per cent. At Rebel, sales were up 3.3 per cent and like-for-like sales better by 2.7 per cent, while BCF (Boating Camping Fishing) recorded total sales up 4 per cent and like-for-like sales up 3 per cent.

Macpac sales were down 5 per cent and like-for-like sales down 9.1 per cent, hurt by travel restrictions and a flow-on effect to camping. For Super Retail across all its chains, total sales rose 4.2 per cent and like-for-like sales a 3.6 per cent improvement.

During the peak of the COVID-19 lockdown in April monthly like-for-like sales were down 26.2 per cent but rebounded to be up 26.5 per cent.

This momentum has continued in June with sales up 27.7 per cent.

The company added that preliminary forecasts of pre-tax abnormal items in 2020 of $54m were below previous guidance of $58m, which included the remediation of underpaid wages.

Super Retail chief executive Anthony Heraghty said given the volatile trading environment he was very pleased with the results.

“The group’s omni-retail channel business strategy has enabled our businesses to adapt quickly to changing consumer behaviour during COVID-19 and delivered a resilient trading performance,” he said

Super Retail will update the market with further detail on its 2020 financial results at its full-year results presentation.

Shares in Super Retail closed up 9.5 per cent, or 77c, at $8.88.