Super Retail Group (ASX:SUL) is up today, after unveiling a new five-year growth strategy aimed at expanding across Australia and New Zealand while accelerating its operational efficiency through a group-wide transformation.
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The retail conglomerate, which owns Australian super chains like Supercheap Auto, Rebel, BCF and Macpac, said the five-year strategy is designed to “strengthen its position across the auto, sport and outdoor leisure sectors” while capturing a larger share of an estimated $65 billion addressable market.
Central to the plan is an expansion of the store network from ~790 locations to more than 900 by CY31. Growth is expected to be focused on underrepresented regional markets, new store formats and expanded fitment capabilities, supported by continued growth in online sales and a disciplined store renewal program.
Each brand has been assigned specific growth priorities. Supercheap Auto plans to broaden its offering to meet rising EV demand while rolling out new store formats and fitment services. Rebel is targeting significant network expansion, particularly in regional areas, alongside range optimisation initiatives.
The company also announced its “Ignite” transformation program, which is intended to improve innovation, scalability and productivity across the group.
The initiative will focus on five pillars, Super Retail says: Customer, Team, Flow, Value, and Foundation, and will build on recent investments in loyalty programs, customer data capabilities and supply chain operations.
Ignite will be funded within Super Retail’s existing annual capital expenditure envelope of approximately $150 million. The company expects the program to incur project costs of around $30M per year over the next three years and deliver annual cost savings of approximately $75M by FY29.
The strategy was outlined as part of Super Retail’s update and provides the framework for the company’s growth ambitions through to CY31.
SUL last traded at $12.28/sh.
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