Slide 1: Sports Division Strategy Update
For personal use only Sports Division Strategy Update 24 July 2017
Slide 2: Overview
Overview Super Retail Group has a strategy of building businesses in high involvement categories. Since For personal use only acquisition in 2011, the Group has successfully differentiated and grown the Rebel and Amart Sports businesses through focusing on different customer segments by assuming tai
Slide 3: Historical Sports Division Strategy
Historical Sports Division Strategy The growth and development of the two businesses to a total network of up to 200 stores to achieve For personal use only overall category authority with both businesses targeting different customer segments with differentiated ranging / promotional strategies and
Slide 4: Sports Division Performance Trends
Sports Division Performance Trends The current strategy has delivered strong growth in revenue and profit since acquisition, supported by For personal use only increasing customer and team engagement Rebel & Amart Sports FY13 FY14 FY15 FY16 FY17 (2) Store Numbers (1) 134 143 146 150 157 Sales ($m) (
Slide 5: Evolving Sports Retail Market
Evolving Sports Retail Market For personal use only The dynamics of the sports retail market are set to evolve in the next few years with changes in customer buying behaviour and increased competition from large international sports retailers and on-line specialists. Customer expectations will conti
Slide 6: Implications for Sports Division Strategy
Implications for Sports Division Strategy The Group has concluded that the optimal strategy to sustain its position as the market leader in sports For personal use only retailing in Australia and to deliver the best outcomes for customers, team members and shareholders will be to focus on building o
Slide 7: New Sports Division Strategy
New Sports Division Strategy The growth and development of the Rebel business to a network of up to 200 stores (1) delivering For personal use only inspiring solutions and engaging experiences for all Australians…Rebel is the leading sports retailer in the country. We are Australia’s most inspiring
Slide 8: Financial Impacts
Financial Impacts The gross margin uplift and synergy benefits from the conversion are expected to reach an annualised For personal use only $15 million after two years and will provide capacity for re-investment in building the Rebel business and in sustaining a competitive offer as market dynamics
Slide 9: Key Risks & Mitigations
Key Risks & Mitigations For personal use only RISK CONSIDERATIONS MITIGATION Customer Retention The key drivers of customers who The new strategy for the Rebel business will include have a preference for Amart over initiatives to address these risks: Rebel are: • Store locations will be retained • S