Mark McInnes to join Brett Blundy’s BBRC two years after Premier Investments exit
Retail veteran Mark McInnes says consumer spending is holding up far better than expected, as he prepares for a new job with billionaire investor Brett Blundy.
Former Premier Investments boss Mark McInnes says consumer spending is holding up far better than expected amid the cost of living crunch, as he prepares for a new job with billionaire retail magnate Brett Blundy.
Mr McInnes, who will step into the newly created role of global chief executive of retail and consumer at Mr Blundy’s private investment vehicle BBRC next month, has been out of the game for two years following his departure from Solomon Lew’s Premier Investments.
And while acknowledging it has become a much more challenging environment for retailers following consecutive interest rate rises and increasing pressure on household budgets, he remains optimistic about the industry’s prospects in the year ahead.
He said retailers, generally, had weathered the storm, with consumer spending holding up better than expected.
“The retail consumer has held up very well,” he said.
“A lot of analysts mid-last year had downgraded a lot of retailers but it really hasn’t been that bad, and some retailers are at all time highs.
“I think that’s because consumers are spending, but they’re now spending their savings. And although interest rate pressures and cost of living pressures are real, because everybody has a job or those that want a job can get a job, they’ve been able to manage that on their personal household balance sheet.
“That’s not to say there aren’t points of stress – there obviously are – but the fact that there’s no great rise in unemployment is a real positive for Australia.”
Mr McInnes, also a former boss at David Jones, will commence his new role on February 26, overseeing BBRC’s future investments.
Mr Blundy’s firm currently holds investments in brands including department store Best & Less, fashion and homewares chains Lovisa, Adairs, Honey Birdette and Universal Store, and Accent, which includes shoe store chains Hype and Platypus.
His move comes two years after Mr McInnes ended a 10-year stint heading Solomon Lew’s Premier Investments, and following the expiry of a two-year non-compete agreement which ended last week.
Mr McInnes said strong migration flows into the country were also supporting elevated spending across the economy, and together with the prospect of lower interest rates by the end of the year, there were positive signs for the sector in the year ahead.
“If unemployment does start to creep up and the Reserve Bank does start to cut rates, that will add another layer of confidence,” he said.
“I also think immigration is a real positive for the country. So I’m very positive about the retail sector. Whilst there’s some challenges, I think companies with good product, good service and great online businesses and a great cost base will do well.”
Despite rumours Mr McInnes was lining up a move to reunite with Lew, potentially as a replacement for outgoing Myer chief executive John King, he has opted to join Mr Blundy’s retail empire.
Mr Blundy was ranked 46th on The Australian’s richest 250 list last year, with his retail and agricultural holdings valued at $2.64bn.
Mr McInnes described Mr Blundy as “one of Australia’s greatest retailers and retail pioneers”. “His experience, his ambition, his balance sheet firepower and my experience – I think we’ll make a very good team,” he said.
In a statement, Mr Blundy said he was “delighted to welcome an executive of Mark’s calibre and experience to BBRC”.
“Mark’s retail credentials are second to none, having led incredible transformations of some of Australia’s greatest retail companies over the last 20 years and delivered some truly amazing results,” he said.
“BBRC has ambitious growth targets and we are excited to have Mark on board to help us achieve them.”
More Coverage
