Retail group’s Rebel yell

SUPER Retail Group says it is well placed to increase its share of a highly fragmented sporting goods retail market as the sector’s smallest players fall prey to Amazon.

The retail group, which yesterday announced plans to convert its Amart Sports stores into Rebel outlets, is also eyeing opening more than 40 new stores over the next five years.

The move to convert 65 Amart Sports stores to the Rebel brand comes as the retailer prepares to take on US online giant Amazon and global sports retailers JD Sports and Decathlon.

Super Retail will be left with a fleet of 157 Rebel stores generating $920 million in annual sales and accounting for about 25 per cent of the nation’s sporting goods market.

The rebranding exercise will dent its bottom line by $34 million, with the bulk of that associated with writing off the value of its Amart brand.

It expects to eke out $15 million in annual ongoing cost savings within two years via lower marketing and administhe

tration costs and better stock management.

“This change positions the organisation very strongly for change in consumer behaviour and for the change in the competitive dynamic,” chief executive Peter Birtles said. “It gives us a war chest to make the necessary investment both in capability and prices as we go forward.”

He said Rebel could take on all newcomers, noting smaller sporting goods retailers in the US and Europe had been the main casualties from new competitors such as Amazon.

Market-leading groups had increased their market share as a fragmented retail space consolidated, Mr Birtles said.

“That is what we will probably see here as well,” he said.

UK sportswear chain JD Sports opened its first Australian outlet earlier this year.

French-based Decathlon is working to open the first of 100 warehouse-style stores by the end of the year. It already operates a local online store.

Mr Birtles said Super Retail had not been impacted by JD Sports, which was focusing on athleisure.

Rebel was well placed to take on Decathlon given the French group mainly sold private label goods, he said.

Super Retail plans to have all of its Amart stores converted to Rebel outlets by November.

Mr Birtles said the savings would be used to open new stores, invest in the business or lower prices, depending on how a changing competitive landscape played out.

Super Retail said it expected to hit the upper end of its previous profit guidance, of 16 to 18 per cent earnings growth, when it handed down its fullyear results next month.

Its shares rose 2.25 per cent, or 19¢, to close at $8.61.