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Super Retail Group raising $203 million to grow omnichannel business

Image of a Rebel storefront

Super Retail Group is tapping shareholders to improve the customer experience, analytics and supply chain of its omnichannel business and take advantage of new opportunities as a result of the disruption caused by COVID-19.

The company, which owns and operates the Supercheap Auto, Rebel, Macpac and BCF retail chains, is issuing approximately 28.2 million new shares to raise $203 million at a fixed price of $7.19 a share.

The equity raising, which comprises an institutional entitlement offer that opened on Monday, June 15, and a retail entitlement offer, has the support of company founder, Reg Rowe, who has committed through the entities he controls to take up his full entitlement of $59 million.

Super Retail Group CEO Anthony Heraghty said he was pleased with the company’s trading performance during COVID-19, adding that it is well positioned to take advantage of shifts in consumer behaviour observed during the pandemic.

“We are very pleased with the robust trading performance of the Group despite COVID-19 and thank our team members for their dedication to the business during the pandemic,” Heraghty said in a statement released to the ASX on Monday.

“The execution of our strategy has continued during COVID-19, with our four core brands well positioned to take advantage of shifts in consumer behaviour that have been observed through the pandemic.

“The equity raising enables us to continue the execution of our strategy, further strengthen our omni-retail capabilities and continue to organically grow our four core brands.”

Super Retail Group saw a 26.2 per cent drop in sales during the month of April (March 29-April 25) compared to the previous corresponding period, but like-for-like sales rebounded in May (April 26-May 23), growing 26.5 per cent.

Group online sales more than doubled during April and May compared to the previous corresponding period to represent 18.2 per cent of overall sales.

The company attributed to the strong performance to its recent investment in its omni-retail platform and supply chain, which enabled it to meet the significant shift to online and click-and-collect purchasing. It also repurposed costs to areas of high activity to meet demand.

Super Retail Group said it has continued to benefit from the strong consumer environment in June.

Supercheap Auto’s sales for FY20 to May 23 totalled $987 million, a 4.6 per cent increase on the previous corresponding period. Rebel’s sales for the same period were $945 million, up 2.1 per cent on the previous corresponding period.

BCF’s sales were $478 million, down 0.6 per cent on the previous corresponding period, and Macpac’s sales totalled $109 million, down 10 per cent.

Macpac was impacted more than the group’s other core brands by the New Zealand government-imposed closure.

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