Rebel to return serve on giants

SUPER Retail Group says it is well placed to increase its share of a 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 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 new competition from the US online giant and two foreign sportswear chains, British group JD Sports and French outfit Decathlon.

Super Retail will have a fleet of 157 Rebel stores generating $920 million in full-year sales, accounting for about a quarter 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.

“This change positions the organisation very strongly for the change in consumer behaviour and for the change in the competitive dynamic,” Super Retail chief Peter Birtles said.

“It gives us a war chest to make the necessary investment both in capability and prices as we go forward.”

Mr Birtles 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.

“The market leaders have generally been able to grow their market share,” he said.

JD Sports opened its first Australian outlet earlier this year, while Decathlon is working to open the first of 100 warehouse-style stores by the end of the year. It operates a local online store.

Mr Birtles said Super Retail had not been impacted by JD Sports, which was focusing on the “athleisure” side of the industry.

Rebel was well placed to take on Decathlon given the French group mainly sold own-branded goods, he said.

“All of these players bring different things but our focus will be on our customer and making sure we are meeting those needs,” Mr Birtles said.

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

Shares in Super Retail rose 2.3 per cent yesterday to close at $8.61.