Super Retail Group’s sales hit by Covid lockdowns, warns of supply chain margin pressure
The owner of Supercheap Auto, Rebel, BCF and Macpac was hit by Covid lockdowns and is bracing for supply-chain pressures on margins.
Auto parts, fitness wear and outdoor gear retailer Super Retail Group has seen across the board sales declines due to recent Covid lockdowns, and is warning of margin pressure due to global supply chain challenges.
In a trading update released ahead of its annual general meeting on Wednesday, the group said like-for-like sales growth for the first four months of the 2022 financial year declined 12 per cent across its brands when compared to 2021, but lifted 10 per cent on 2020.
The largest sales decline, of 13 per cent, was at its flagship Supercheap Auto Brand, which booked a sales surge last year as international border closures revived family car holidays.
Sales declined at 10 per cent at its Rebel sportswear brand, 12 per cent at its outdoor gear brand, BCF (Boating, Camping, Fishing) while outdoor wear brand Macpac saw a 10 per cent decline.
Super Retail Group said the Macpac brand “has been particularly impacted by lockdowns in the key markets of NSW, Victoria, ACT and New Zealand, which were more severe than the previous corresponding period.”
Additionally, CEO Anthony Heraghty warned shareholders that margins that have been sustained through the financial year could come under pressure due to supply chain disruptions.
“Freight and logistic costs associated with elevated levels of inventory could impact future gross margin as the outlook for supply chain remains challenging,” Mr Heraghty said at the AGM.
He added the group had offset some of the sales decline through a growth in its online sales and capabilities, including an ongoing investment in customer loyalty data.
“Online sales have increased by 96 per cent and represent 30 per cent of Group sales, year to date,” he said.
“Click & Collect grew by 163 per cent, outpacing home delivery, and represented 59 per cent of online sales during this period.”
“The Group is well positioned for the key cyber and Christmas trading period with a fortified inventory position across all four of its core brands.”
Shares in Super Retail Group closed at $13.23, up 1.69 per cent.
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