Considered among the best long term dividend stocks, this stock is still favour with investors.
Super Retail Group Limited (ASX: SUL)
Super Retail Group Limited operates a diverse portfolio of 4 strong retail brands (Supercheap Auto, Rebel, BCF, and Macpac) each leading in their respective categories of auto, sports and outdoor leisure. These sectors are typically resilient, helping buffer performance in varied economic climates. SUL has built a substantial customer base with 12 million active club members generating nearly 80% of group sales. This large, engaged base presents a major opportunity to further leverage first-party data for tailored promotions and loyalty programs enhancing customer retention and increasing lifetime value.
The company has a national footprint of over 770 stores across Australia and New Zealand by 92% of transactions involving in-store elements, highlighting the success of its omni-channel approach. Recent investments have enhanced digital capabilities including modernised e-commerce platforms and better use of data analytics for personalisation. The company is also upgrading its supply chain infrastructure with a new semi-automated distribution centre in Truganina and a new national strategy to treat physical stores as mini distribution hubs. This supports faster and more cost-effective deliveries. Capital investment in the retail network including store expansions, refurbishments and relocations continues to improve returns and supports long-term growth.
SUL, one of the growing companies to invest in, is expanding its store network and upgrading its property portfolio to initiate stronger returns on capital. The company is focusing on larger format stores, gradually phasing out smaller 400–650 sqm formats in favour of stores around 1,000 sqm, particularly in Supercheap Auto. Rebel is also seeing significant capital directed toward its rCX concept stores, which enhance customer experience and brand differentiation. BCF’s superstores have proven especially successful, generating two to four times more revenue than average and SRG plans to expand these further into regional areas. The Group is concentrating on high-quality, strategically located stores and leveraging co-location opportunities to appeal to landlords and developers.
In FY25 up to now, the Group has seen 4.2% total sales growth for the first 44 weeks with like-for-like sales improving in the 2nd half to +3.1% driven by strong performance from BCF. Gross margins remain slightly lower compared to the previous year. The auto category has shown signs of stability, while Rebel has gained momentum despite weather-related disruptions. BCF continues to benefit from well-timed investments in inventory and merchandising, sustaining strong customer demand. However, Macpac has underperformed due to weak retail conditions in New Zealand. As winter approaches, it is focused on inventory management to prepare for its peak trading period.
(Source: Company Announcements)
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