Super Retail Group, the owner of sports, auto and outdoor chains, is navigating a challenging retail backdrop where strong top‑line demand clashes with rising stock losses and customers hunting for bargains. In Victoria, reported shoplifting offences have jumped by almost 40% in a year to more than 41,000 incidents and New South Wales is also seeing theft trend higher, putting extra pressure on store teams and margins. In this environment the group is trying to keep its brands relevant and stores appealing while dealing with higher operating and security costs.
In the first half of the financial year, Super Retail lifted revenue by about 4.2% to $2.2 billion, but net profit dropped roughly 20% to $104.1 million as heavier discounting in its auto and sports businesses cut into earnings. The company also booked around $24 million in legal and advisory expenses linked to court proceedings involving former senior leadership, adding another drag on the bottom line. Rebel, the sports chain, grew sales by about 4.8% helped by strong footwear and licensed team apparel, but margins tightened because of promotions and a spike in theft. To stem losses, the group is trialling new store layouts, body‑worn cameras for staff, gated entrances and entry screens that make shoppers aware they are on camera, while Supercheap Auto’s 358‑store network delivered sales and profit growth but faced similar discounting pressure.
Looking ahead, trading early in the second half seems to be stabilising but remains mixed across brands. Group like‑for‑like sales are up around 3.5% in the first eight weeks, with Supercheap Auto gaining about 4% and outperforming expectations, while Rebel is growing only about 1.8% as it contends with supply disruptions from key suppliers and a new international sports retailer opening local stores. Outdoor brands BCF and Macpac appear to be regaining momentum, with Macpac tracking ahead of market expectations going into its winter‑heavy fourth quarter. Encouraged by this, investors have pushed Super Retail’s share price up nearly 8% to around $15.19, as the group commits about $155 million this year to refurbish stores, complete a new Victorian distribution centre, expand its digital capabilities, open 12 additional stores in the second half and maintain an interim dividend of 32 cents per share, moves that may support long‑term growth even if retail crime and discounting continue to cloud the near‑term outlook.
