Rebel, Supercheap Auto owner Super Retail Group warns of profit margin squeeze, cost blowout
Super Retail Group has warned shareholders of a profit margin squeeze and soaring costs, blaming subdued trading conditions, heavy discounting and an expensive overhaul of an ageing payroll system.
The ASX-listed SRG is behind big box outlets Supercheap Auto, Rebel, BCF and Macpac.
In an aftermarket announcement on Wednesday, the company disclosed group gross margins for the second half to date were tracking below the prior comparable period. This was 'broadly consistent' with the year-on-year decline recorded in the first half of the 2025 financial year, it said.
The trading update sent shares 0.2 per cent lower to $13.37 just before 10am on Thursday.
While group like-for-like sales growth is up 3.1 per cent since January, Super Retail warned retail trading conditions remained subdued, particularly for its New Zealand stores.
Supercheap Auto sales fell 0.1 per cent for the second half to date amid heavy discounting in the auto category. Supercheap Auto is facing greater competition in the category with Wesfarmers-owned Bunnings' bigger push into the automotive sector.
'The team has focused on moving away from lower yielding promotional activity whilst maintaining competitiveness and managing costs in what remains a lower growth environment near term,' Super Retail said on Wednesday.
Sales at Rebel — set to face competition with the entry of British sporting goods giant Sports Direct in Australia — rose 3.5 per cent as it experienced an acceleration in growth.
This was despite a $5 million hit from disruptions caused by cyclone Alfred on the east coast.
BCF was the star performer for Super Retail with a 9.1 per cent lift in sales.
The retailer is also replacing its ageing payroll system and building a new HR management platform, while transitioning to a new distribution in Victoria.
These initiatives were expected to push the retailer's unallocated costs to $42m this year, compared with $36m in 2024.
SRG has been embroiled in allegations of an illicit affair between boss Anthony Heraghty and the company's former chief human resources officer Jane Kelly.
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West Australian
13 hours ago
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World Gold Council working to lure artisanal miners across globe away from ‘illicit actors'
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19 hours ago
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The Advertiser
20 hours ago
- The Advertiser
Mal's Mission: How Meninga plans to poke the Bears
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Already the local Seven West-owned newspaper The West Australian has been critical of the venture which has been backed by WA State government cash. "Normally if you're doing something right, you have a few critics along the way," De Ceglie said. "I've been totally blown away by the amount of messages of people who want to get involved in the Perth Bears … I'm very optimistic this will be a huge success. "It'll be up to the Perth Bears to earn the respect of the newspaper. "If we're a success on the field, and if we're a success off the field, then we should be in those sports pages. "If we're not, the only people missing out are the readers of the newspaper." Meninga is yet to finalise his coaching staff nor a recruitment team who can help him bring the Perth roster together with a relatively short lead-in time. When the Redcliffe-based Dolphins entered the NRL in 2023 they missed out on several big-name targets in the recruitment space. But their squad - which won nine of their 24 games in their inaugural season - earned the respect of rival clubs for their effort and determination. "I don't think we'll have too many worries about talking to players and managers about the opportunity to come play in Perth," Meninga said. "We've got a story to tell. We have to understand what we're trying to achieve and that's my job initially to get the right people and resources around us to help understand what that story is." After unveiling Mal Meninga as the Perth Bears' inaugural head coach, the club's chief executive says criticism of the NRL's start-up franchise is proof they are on the right track to winning new supporters in the AFL-made West. At a press conference at League Central in Sydney on Friday, Meninga signed a three-year contract with the Bears, who will enter the NRL in 2027. It marks the 64-year-old's first foray into club coaching since he left the Canberra Raiders in 2001. Meninga will be 69 by the time his contract expires. The Immortal, who has enjoyed a decorated representative coaching career in charge of Queensland and Australia, will relinquish his role with the Kangaroos ahead of this year's Ashes series to help the Bears build a roster to be competitive in a little over 18 months time. "This is bigger than me," Meninga said. "This new pioneering venture over to WA and the opportunity to be involved in the growth of the game, to grow a club the Perth Bears is too good to refuse. "I feel very honoured, very nervous, and I think it's a huge responsibility." The Bears can talk to off-contract players come November 1, but their hardest challenge may be winning over fans, sponsors and a media who are already heavily invested in the AFL. 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"I've been totally blown away by the amount of messages of people who want to get involved in the Perth Bears … I'm very optimistic this will be a huge success. "It'll be up to the Perth Bears to earn the respect of the newspaper. "If we're a success on the field, and if we're a success off the field, then we should be in those sports pages. "If we're not, the only people missing out are the readers of the newspaper." Meninga is yet to finalise his coaching staff nor a recruitment team who can help him bring the Perth roster together with a relatively short lead-in time. When the Redcliffe-based Dolphins entered the NRL in 2023 they missed out on several big-name targets in the recruitment space. But their squad - which won nine of their 24 games in their inaugural season - earned the respect of rival clubs for their effort and determination. "I don't think we'll have too many worries about talking to players and managers about the opportunity to come play in Perth," Meninga said. "We've got a story to tell. We have to understand what we're trying to achieve and that's my job initially to get the right people and resources around us to help understand what that story is." After unveiling Mal Meninga as the Perth Bears' inaugural head coach, the club's chief executive says criticism of the NRL's start-up franchise is proof they are on the right track to winning new supporters in the AFL-made West. At a press conference at League Central in Sydney on Friday, Meninga signed a three-year contract with the Bears, who will enter the NRL in 2027. It marks the 64-year-old's first foray into club coaching since he left the Canberra Raiders in 2001. Meninga will be 69 by the time his contract expires. The Immortal, who has enjoyed a decorated representative coaching career in charge of Queensland and Australia, will relinquish his role with the Kangaroos ahead of this year's Ashes series to help the Bears build a roster to be competitive in a little over 18 months time. "This is bigger than me," Meninga said. "This new pioneering venture over to WA and the opportunity to be involved in the growth of the game, to grow a club the Perth Bears is too good to refuse. "I feel very honoured, very nervous, and I think it's a huge responsibility." The Bears can talk to off-contract players come November 1, but their hardest challenge may be winning over fans, sponsors and a media who are already heavily invested in the AFL. "Mal is an Immortal of the NRL, he is also an Immortal of our national sporting landscape, Mal is part of the Australian identity and we're honoured he's taken this opportunity," said club chief executive Anthony De Ceglie. "We've gone from one Bear in me, to two Bears in Mal, we've doubled our staff overnight. "It's small steps, we need to listen to the legacy of the North Sydney Bears and the fans in WA who have a proud tradition and who have kept the candle burning and we need to marry those two things together to make this a huge success." A former high-ranking executive at Seven West Media - the company which owns the AFL broadcast rights - De Ceglie knows the NRL's 18th side has work to do. Already the local Seven West-owned newspaper The West Australian has been critical of the venture which has been backed by WA State government cash. "Normally if you're doing something right, you have a few critics along the way," De Ceglie said. "I've been totally blown away by the amount of messages of people who want to get involved in the Perth Bears … I'm very optimistic this will be a huge success. "It'll be up to the Perth Bears to earn the respect of the newspaper. "If we're a success on the field, and if we're a success off the field, then we should be in those sports pages. 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