Rebel owner Super Retail Group says RBA interest rate rises ‘rattled’ shoppers in December
The company behind some of Australia’s best-known brands says consumers were “rattled” about interest rate hikes as early as December, which led to a more cautious shopping behaviour during Christmas.
The company behind some of Australia’s best-known brands says consumers were “rattled” about interest rate hikes as early as December, which led to more cautious shopping behaviour during Christmas.
Super Retail Group — behind big-box outlets Rebel, Supercheap Auto, BCF and Macpac — said the renewed angst over the trajectory of interest rates also coincided with the Bondi attack, which claimed 15 lives.
“It is difficult to distinguish between what was what there, but certainly the consumer was more cautious running into Christmas,” Super Retail chief financial officer David Burns said on Thursday as it delivered a near-20 per cent slide in half-year net profit to $104.1 million.
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By continuing you agree to our Terms and Privacy Policy.“We haven’t seen the benefits yet from the original rate cuts coming through, that takes up to nine months to pass through.
“And similarly, I don’t think we’re yet seeing the impacts of the (February) rate rise.”
Mr Burns echoed comments made by Woolworths boss Amanda Bardwell this week, saying crunched consumers, particularly young families and singles, are increasingly chasing discount promotions after this month’s interest rate increase.
Super Retail said normalised profit before tax hit $173m, in-line with the guidance provided last month, but tracked behind what analysts had expected.
Group sales were up 4.3 per cent to $2.2 billion, thanks to a 5.1 per cent jump at Supercheap Auto and a 13.1 per cent improvement at Macpac. Rebel reported sales growth of 4.8 per cent but BCF managed just a 0.3 per cent gain to $250m.
Newly-appointed Super Retail chief executive Paul Bradshaw said he was pleased to deliver positive same-store sales growth in what was an “increasingly competitive retail environment”.
Gross margins were crunched during the half because of increased promotions and sales at sports store Rebel.
Super Retail noted the level of theft remained high at its 163 Rebel stores — which include Carousel and Karrinyup in WA — but that “actions taken to date have halted the upward trend”.
The group’s positive outlook for the rest of the year pleased investors, sending shares up 8.2 per cent to $15.23 by midday.
Jarden analyst Ben Gilbert said it was an in-line result, “with few surprises with focus on the trading update and margin”.
In the first eight weeks of the second-half, group same-store sales were up 3.5 per cent.
Sales at Supercheap was better than expected, up 4 per cent, while Rebel was only up 1.8 per cent, hurt by inventory challenges following supply chain disruptions at key suppliers.
BCF returned to growth and Macpac beat market expectations as it prepares for its peak winter trade in the fourth quarter.
