Cop709 corporate r

2013CORPORATE REviEW

COP709 Corporate Review.indd 41 17/09/13 9:32 AM

ABOUT US .............................................4

OUR NETWORK .....................................6

YEAR IN REVIEW ...................................8

GROUP DEVELOPMENT ........................12

CORPORATE RESPONSIBILITY................13

ENVIRONMENT .....................................14

COMMUNITY ........................................16

SYSTEMS ...............................................18

SUPER RETAIL COMMERCIAL ................19

INTERNATIONAL OPERATIONS ..............20

LOGISTICS .............................................21

AUTO RETAILING ...................................22

LEISURE RETAILING ...............................24

SPORTS RETAILING ................................30

OUR PEOPLE .........................................32

APPENDIX .............................................36

PERFORMANCE TRENDS .......................37

FINANCIAL STATEMENTS ......................38

CONTENTS

FEEDBACK

ABOUT THIS REVIEW

This review is designed to be an easy to read

record of our achievements against the objectives

and deliverables of our strategic plan. It also sets

out our financial position for the 2012-2013 year.

Each chapter outlines the performance,

challenges and key initiatives within our core

business units during the past twelve months.

The Corporate Review, along with our Annual

Report, is one of the methods we use to report

on our activities to our stakeholders and the

general public.

This review and past reviews are available to view

online at www.superretailgroup.com

Only 700 copies of this review were printed, using

forestry sustainable paper.

© 2013

Super Retail Group Limited

751 Gympie Road

Lawnton Queensland 4500

AUSTRALIA

www.superretailgroup.com

We welcome your feedback and suggestions

on this review.

Please refer any comments to our Group

Communications team:

Telephone: +61 7 3482 7900

Fax: +61 7 3482 7161

Email: [email protected]

INTRODUCTION 3


ABOUT US

Super Retail Group is one of Australasia’s Top 10 corporate

retailers and is listed on the Australian Stock Exchange.

Our portfolio of retail brands includes Amart Sports, BCF Boating

Camping Fishing, Goldcross Cycles, FCO Fishing Camping Outdoors,

Ray’s Outdoors, Rebel and Supercheap Auto.

In addition to our retail brands, the Group’s business-to-business

division, Super Retail Commercial offers a single point of contact

for corporate clients throughout Australia, New Zealand and

Asia Pacific to leverage off the Group’s sourcing and supply chain

capabilities and purchase products across multiple specialised

categories available within our retail brands.

Started in 1972 and publicly listed in 2004, the Group has grown to

become one of Australasia’s leading specialty retailers with more

than 600 stores and annualised turnover in excess of $2 billion.

With operations in Australia, New Zealand and China, Super

Retail Group’s success is underpinned by a continued focus on

maintaining and enhancing our culture, products and core values,

which are embodied by our passionate team of more than 12,000.

Our ability to deliver great value, choices, products and service to

our customers, in whichever manner they prefer to experience our

brands, is achieved through our continued focus on new product

introduction, sourcing and supply chain initiatives, and the further

development of our integrated multi-channel customer offer.

The defining principle of our businesses is to offer products and

services that will enhance our customers’ leisure time. In many

cases we are selling products to enable our customers to enjoy their

passion, whether it’s the car that’s their pride and joy, taking the

family fishing or training to take part in a triathlon.

OUR MISSIONTo provide solutions and engaging experiences that enable our customers to make the most of their leisure time.

OUR VISIONTo be Australasia’s most highly regarded specialty retailer.

OUR GOALS• To be one of the five largest Australasian retail

companies

• To achieve the highest team member engagement across the retail sector

• To achieve higher customer satisfaction ratings than our competitors in the markets in which we operate

• To provide returns to our shareholders that exceed the benchmark ASX200 by 5%

ABOUT US4


DIFFERENTIATORS

PRODUCTS & INNOVATION

Identifying and launching innovative brands, products, services and concepts quicker than our competitors whilst maintaining the relevance of our core range

PASSIONATE TEAM

MEMBERS

Providing opportunities and maintaining a culture that attracts, develops, engages and retains loyal and passionate team members

CUSTOMER ENGAGEMENT

Having a clear understanding of our customers’ requirements and delivering friendly, informative, engaging experiences which allow them to shop their way

PARTNER ENGAGEMENT

Developing collaborative business relationships with our partners to enable delivery of mutual goals

BUSINESS SYSTEMS

Leveraging our core systems, infrastructure and processes to provide agile and cost effective multi-channel solutions

SPEED & DISCIPLINE

Executing our plans with speed and discipline to ensure we achieve our objectives

ABOUT US 5


CHINA

INDIA

VIETNAM

THAILAND

SINGAPORE

EUROPEOUR NETWORK

BRAND ACT NSW NT QLD SA TAS VIC WA NZ TOTAL

AMART SPORTS - 2 1 26 6 - 7 - - 42

BCF 3 30 1 31 6 - 18 16 - 105

FCO - - - - - - - - 13 13

GOLDCROSS CYCLES - - - 7 - - - - - 7

RAY’S OUTDOORS 1 8 - 11 5 3 20 7 - 55

REBEL 2 35 - 10 6 1 27 11 - 92

SUPERCHEAP AUTO 4 63 3 77 17 5 49 26 44 288

TOTAL 10 138 5 162 40 9 121 60 57

STORE NUMBERS BY STATELEGEND

AMART SPORTS

FCO

RAY’S OUTDOORS

SUPERCHEAP AUTO

BCF

GOLDCROSS CYCLES

REBEL

OUR NETWORK6


CHINA

INDIA

VIETNAM

THAILAND

SINGAPORE

EUROPE

LEGEND

SUPER RETAiL GROUP DiSTRiBUTiOn CEnTRE

SHiPPinG

ROAD FREiGHT

AiR FREiGHT

OUR SUPPLY CHAIN

OUR NETWORK 7


YEAR IN REVIEW

The key drivers of performance continue to

be merchandise renewal and presentation,

private brand development, engaging

marketing, sourcing and supply chain

execution and the passion of our team

members.

Each of the Group’s larger businesses

(Supercheap Auto, BCF Boating Camping

Fishing, Rebel and Amart Sports) performed

well; opening new stores, delivering strong

like for like sales growth and generating

improved profit.

We have completed a review of the

Ray’s Outdoors, FCO Fishing Camping

Outdoors and Goldcross Cycles businesses

and a number of business improvement

initiatives have commenced to grow

their sales and profit. Early results are

encouraging. Associated non-recurring

restructuring costs of $16.2 million have

been recognised.

Last year, the Group commenced a program

of initiatives to develop the capabilities

that our businesses will require to

successfully operate as integrated multi-

channel retailers. During the year, the

Group invested circa $53.9 million in capital

expenditure and $4.1 million in operating

expenses on these programs.

Progress to date is on track with notable

achievements during the year including

the launch of the Supercheap Auto loyalty

program in Australia, the implementation

of integrated real time information

systems across the Group’s functions,

the development of an integrated freight

solution for internet and trade customers

and the foundation for the integration of

the Sports businesses onto the Group’s

Information Technology systems. Traffic

to the Group’s websites increased by 50%

compared to the previous year as our

customers increasingly research potential

purchases before visiting stores.

GROUP RESULTS

Group sales grew by 22% to $2.02 billion

and profit after tax also grew by 23% to

$102.7 million. This strong overall growth

reflected solid growth in the Auto and

Leisure Retailing Divisions and a full year’s

contribution from the Sports Retailing

Division (as compared to eight months

contribution in the prior period).

Costs of $16.2 million relating to the

restructuring of the Ray’s Outdoors and

Goldcross Cycles businesses were expensed

during the year while costs of $11.7 million

associated with the acquisition of the

Sports Retailing businesses were expensed

in the prior period.

The Group’s larger businesses generated

strong like for like sales growth, opened

new stores and delivered improvements in

gross margins. This was achieved through a

combination of new product introduction,

private brand development and marketing,

sourcing and supply chain initiatives.

The Group has continued to invest in the

development of the Group with $63.1

million capital expenditure and $4.1 million

operating costs associated with the Group’s

multi-channel development projects and

$43.6 million capital expenditure associated

with new and refurbished stores. Despite

this investment, Group Net Debt at $329.3

million was $11.7 million below the prior

year reflecting the strong operating cash

flow generated across the Group.

AUTO RETAiLinG

The Supercheap Auto business has

continued to perform strongly with its

strong like for like growth driven by

increases in transaction numbers, units

sold and average unit value. EBIT margins

reached the target of 11%, growing by

0.4 percentage points over the prior

comparative period. Further gross margin

improvement driven by ranging and

sourcing initiatives was partially offset by

increases in the cost of doing business as

a result of increases in power costs and

investment in the development of business’

multi-channel capabilities.

The business launched its customer

loyalty program Supercheap Auto Club

Plus in Australia in October 2012 following

the successful trial of the program in

New Zealand earlier in the year. Club

membership had grown to over 500,000 by

June 2013 and incremental club member

spending contributed circa 1% sales growth.

The business expects to grow membership

in excess of one million members over the

next three years.

EACh OF ThE GROUp’S LARGER BUSINESSES pERFORMED WELL; OpENING NEW STORES, DELIVERING STRONG LIkE FOR LIkE SALES GROWTh AND GENERATING IMpROVED pROFIT.

in a generally flat retail environment, the Group’s

focus on retailing products that our customers

predominantly use as part of a leisure experience

has served us well. We believe that our customers

will continue to spend on their passions deferring

expenditure in other areas.

We are pleased to be able to report on a further year of growth and achievement for our company.

YEAR IN REVIEW8


The business has continued to focus on

store refurbishment, ranging initiatives,

private brand development, partnering with

the world’s best automotive brands and

team engagement as drivers of underlying

consistent growth.

All the major product categories performed

well during the year with particularly

strong growth being achieved in the car

care, lubricants, electrical and power

categories. Positive like for like growth was

achieved across all states and territories of

Australia and in New Zealand. The Western

Australian performance was particularly

strong reflecting both a lift in team member

engagement and retention and the benefits

of the increase in Sunday trading.

The business opened a further nine stores

and closed two stores during the year

while 25 stores were refurbished and

seven were converted to superstores. At

the end of June there were 288 stores

across Australia and New Zealand with the

business targeting an additional 30 stores

over the next 4 years. The business expects

to refurbish around 32 stores in the coming

year which will bring the current round of

refurbishments to a close.

Towards the end of the year, the business

refurbished two of its superstores on the

north side of Brisbane as concept stores

to test a number of initiatives which

are designed to create a more engaging

interactive shopping experience for the

customer. The business also intends to test

similar ideas in two mid-size stores and

two small stores in the coming year before

determining which initiatives to rollout

across the rest of the network.

The division commenced the trial of its

new trade supply business, Auto Trade

Direct in the North Island of New Zealand

in November 2012. The division is testing

the opportunity to supply auto parts and

accessories to auto mechanics from a

number of hub stores and directly from its

distribution centre and from trade partners.

Much of the supply chain capability

required to support this line of business is

consistent with the capability required to

service retail customers ordering products

for home delivery. Experience to date has

highlighted areas in which the business

model needs to be adapted and further

trials will be conducted in the coming

year before a decision is made on further

rollout.

LEiSURE RETAiLinG

The BCF Boating Camping Fishing business

had a solid year with like for like sales

growth of circa 2% and improvement

in gross margin. Like for like customer

transactions were in line with the prior

year, units per transaction were lower while

average unit value increased. This reflected

the performance of the fishing category

as adverse fishing conditions during the

year resulted in flat sales growth. The

Boating, Camping and Apparel categories all

delivered solid growth.

The business opened 14 stores during the

year taking total store numbers to 105. The

business expects to reach 120 stores in the

next four years. One store on the north side

of Brisbane has been refurbished as a trial

store to test initiatives designed to provide

a more interactive and engaging experience

for the customer.

A number of new ranges were introduced

during the year including the initial testing

of a boat, motor, trailer offer, which will

be rolled out across all stores in the new

year. The business successfully trialled

a new inventory demand planning and

replenishment system in the fishing

category and this will be rolled out across

the business in the coming year with

objectives of supporting improved ‘in stock’

position, reduced inventory and store space

rationalisation.

The repositioning of the Ray’s Outdoors

business continued during the year and

following successful trials at two stores,

it was decided to focus the business on

four core categories; camping, footwear,

outdoor apparel and travel. As a result,

it was decided to commence a clearance

program to exit the outdoor furniture

category, reduce the range of BBQs and to

reposition the apparel and footwear offer.

Costs associated with the restructure of

$6.0 million have been recognised.

The key drivers of performance continue to be merchandise renewal and presentation, private brand development, engaging marketing, sourcing and supply chain execution and the passion of our team members.

ThE BUSINESS hAS CONTINUED TO FOCUS ON STORE REFURBIShMENT, RANGING INITIATIVES, pRIVATE BRAND DEVELOpMENT, pARTNERING WITh ThE WORLD’S BEST AUTOMOTIVE BRANDS AND TEAM ENGAGEMENT AS DRIVERS OF UNDERLyING CONSISTENT GROWTh.

YEAR IN REVIEW 9


The repositioning of the business has

generated positive momentum. Total like

for like sales growth was circa 5% but after

adjusting for the decline in sales of BBQs

and Outdoor Furniture underlying like

for like sales growth was 8%. Particularly

strong growth was achieved in both the

Apparel and Footwear categories. The

business also delivered good growth in

gross margin through ranging initiatives and

management focus.

Five new stores were opened and two

stores were closed during the year resulting

in 55 stores trading by the end of June.

It is anticipated that total store numbers

will grow to around 75 over the next four

years. Following the successful trial of a

new concept store at Frankston in Victoria,

the business will commence a wider store

refurbishment program in the new year.

The business has commenced a program of

store right sizing to exit excess space across

the store portfolio.

In New Zealand, the FCO Fishing Camping

Outdoors business traded through its

first full year following the launch of the

business in November 2011. Thirteen stores

traded throughout the year. Although like

for like sales growth was pleasing at circa

14%, average sales per store was below

target, reflecting a shortfall in customer

traffic.

A business review was conducted in the

second half of the year which highlighted

improvement opportunities including

adopting a more aggressive pricing and

promotional strategy and changes to brand

marketing. The review also identified

opportunities for the business to extend its

range into adjacent areas. Consequential

changes to the business are underway and

will continue into the new year targeted

towards improving sales per store and

lifting operating margins.

SPORTS RETAiLinG

The Group benefited from a full year

contribution from the Rebel and Amart

Sports businesses as compared to eight

months contribution post acquisition in the

prior comparative period. The Goldcross

Cycles business was transferred into the

Sports Retailing Division at the start of the

financial year.

Growth was strong in all the major

categories in the Rebel and Amart Sports

businesses with Sport Equipment and

Fitness Equipment particularly strong. New

ranges, better inventory and promotion

management, stronger relationships with

trade partners and a more engaged team

continued to be the drivers of the strong

performance.

Both the Rebel and Amart Sports brands

were relaunched during the year and

revised store designs completed. Nine

Rebel stores were refurbished, four stores

were relocated and two new stores opened

and one store closed during the year.

The Amart Sports brand was launched

in Victoria with eight new stores open

by the end of June, five of these stores

being former Goldcross Cycles stores. A

further Amart Sports store was opened

in Queensland and one store was closed.

There were nine Amart stores refurbished

during the year. At the end of June there

were 134 Rebel and Amart Sports stores

with a potential of 185 stores in the next 5

years.

Following a strategic review of the

Goldcross Cycles business, it was decided

to convert the business to a store within

a store concept inside an Amart Sports

store. Five stores were converted into

Amart Sports stores during the year and a

further two stores were converted into a

Supercheap Auto store and a BCF store.

The remaining stores will be converted

or closed during the next financial year

and $10.2 million costs associated with

the restructuring of the business have

been recognised. Four new Goldcross

Cycles store in store concepts have

opened in other Amart Sports stores.

The performance of the Goldcross Cycles

store in store concepts to date has been

promising.

SUSTAinABiLiTY

The Group has continued its support of a

number of charitable organisations during

the year. At the Group level, the focus is

on raising funds for children’s healthcare

charities while at a business level, support

is provided to organisations in areas related

to the activities serviced by the business’

products, for example safe driving at

Supercheap Auto and Coastguard at BCF

Boating Camping Fishing.

The Group has also maintained its focus

on a number of environmental initiatives

including reducing packaging and power

consumption and increasing recycling.

The Group was recently recognised by the

Australian Packaging Covenant in their 2013

annual report ratings for being the highest

achiever in the retail industry.

Since the establishment of its international

sourcing operations in China in 2006, the

Group has been committed to ethical

sourcing. The Group undertakes audits of

ThE GROUp hAS ALSO MAINTAINED ITS FOCUS ON A NUMBER OF ENVIRONMENTAL INITIATIVES INCLUDING REDUCING pACkAGING AND pOWER CONSUMpTION AND INCREASING RECyCLING. ThE GROUp WAS RECENTLy RECOGNISED By ThE AUSTRALIAN pACkAGING COVENANT IN ThEIR 2013 ANNUAL REpORT RATINGS FOR BEING ThE hIGhEST AChIEVER IN ThE RETAIL INDUSTRy.

10 YEAR IN REVIEW


all factories manufacturing products for

the Group to ensure compliance with the

Group’s ethical sourcing policy, a copy of

which is set out on the Group’s website.

The audits cover a number of factors

including workplace health and safety and

employment and payroll practices.

TEAM MEMBERS

There are now close to 12,000 team

members employed by the Group in over

600 locations across three countries.

Retention rates have continued to improve

and were at 72.7% at June 2013, an

increase of 1.2 percentage points over the

prior year.

Particularly encouraging was the

improvement in team member engagement

which was measured at 66% during the

year compared to 60% in the prior year

and compared to a retail industry average

of around 55%. It was especially pleasing

that team members of the Rebel and

Amart Sports businesses recorded an

engagement score of 60%, which was a

dramatic improvement on the score of

43% in a survey conducted for the previous

owners of the businesses some 18 months

previously.

The Group is reviewing the measures that

it uses to assess safety performance and to

ensure these are consistent with industry

best practice. A number of initiatives are

underway to improve safety performance

which was below industry averages during

the year, in particular, focusing on the safe

handling of stock in the retail environment.

The results and performance of the

Group are testament to the passion and

commitment of our team members and

we would like to thank all of them for their

contribution during the year.

LOOkinG FORWARD

The year ahead will be another year of

growth and development as we maintain

our focus on growing our existing

businesses and building our multi-channel

capabilities.

We will be investing in opening new stores

and refurbishing existing stores in all of our

businesses, with around 25 stores opening

across the Group. Although retail conditions

are forecast to remain patchy, we expect

to continue to deliver solid like for like

sales growth across our businesses and to

maintain or grow operating margins while

generating working capital improvement.

We will complete the development of two

new distribution centres at Brendale in

Queensland and Erskine Park in New South

Wales.

We will continue to enhance our

information technology platform with the

development of our customer relationship

marketing system, the further rollout of the

JDA forecasting and replenishment system

and the completion of the Group wide SAP

integration amongst the major projects for

the year.

We will relaunch a number of our loyalty

programs and increasingly use data

analytics to develop targeted marketing

campaigns. We will also continue to

develop our fledging Auto Trade Direct and

Super Retail Commercial businesses.

We have a full agenda but our team are

excited by the challenge and committed to

maintaining the strong performance of the

Group. We look forward to reporting on our

progress in the year ahead.

PETER BiRTLESGroup Managing Director and

Chief Executive Officer

The results and performance of the Group are testament to the passion and commitment of our team members and we would like to thank all of them for their contribution during the year.

pARTICULARLy ENCOURAGING WAS ThE IMpROVEMENT IN TEAM MEMBER ENGAGEMENT WhICh WAS MEASURED AT 66% DURING ThE yEAR COMpARED TO 60% IN ThE pRIOR yEAR AND COMpARED TO A RETAIL INDUSTRy AVERAGE OF AROUND 55%.

11YEAR IN REVIEW


GROUP DEVELOPMENT

Given the rapid pace of change occurring

in the retail industry, we recognised the

need to further enhance our capability

in the areas of customer insight and

engagement, supply chain effectiveness

and productive working arrangements, at

the same pace we have historically rolled

out brand-specific growth projects such as

new and refurbished stores.

To achieve this, the Group established

a dedicated program and project

management team in 2011/12. The

team, comprising three full-time program

managers and a number of internal and

contracted project managers, has two

broad objectives:

1. Implementation of a standardised

methodology to implement change

projects throughout the Group. The

use of the methodology is intended to

ensure projects are delivered on time

and budget, and realise the expected

benefits; and

2. Delivery of a number of change projects

to build the multi-channel capabilities of

the Group.

We are pleased to say the program

management team successfully

implemented a number of significant

change projects in 2012/13 to improve the

Group’s multi-channel capabilities.

From a customer understanding

perspective, we have continued to develop

our customer relationship management

system and leverage its capability to

execute a number of marketing campaigns

for BCF and Supercheap Auto Club

members during the year. These campaigns

are delivered via direct e-mails (eDMs)

to club members and allow the Group to

generate additional sales without the costs

of catalogue or TV advertising; thereby

generating excellent returns on marketing

spend.

In the previous year, we provided

our customers with ‘Click & Collect’

functionality, offering the capability to

order the product online and collect it from

their nominated store. We also reduced

delivery times for online orders through the

establishment of hub fulfillment stores in

the network. In 2012/13, we built on this

customer experience by providing dynamic

freight costs for online orders, giving

customers the most cost-effective and

timely options for home deliveries.

To ensure we provide customers with up-

to-date information about stock availability

across all channels, we have invested to

ensure we get near real-time sales and

inventory updates.

Finally, ongoing development has continued

to ensure our various brand websites

provide an engaging experience when

customers are researching or purchasing

products online. It is pleasing to note the

Group’s share of online traffic is at least

equal to that of physical store traffic, across

all our brands.

The 2012/13 year represented the second

of our five year plan to transform the

Group’s supply chain operations. The

projects are broken into two broad areas

– development of the Group’s distribution

centre (“DC”) network, and improvements

to our inventory management systems

and processes. During 2012/13, the

Group commenced the construction of a

new DC in Sydney, as well as completing

the selection of a site for a larger DC in

Brisbane. This site will ultimately replace

the two distribution centres currently in

Brisbane. These new DCs, when combined

with recent upgrades in New Zealand and

future upgrades in Melbourne and Perth

in 2014/15, will deliver multi-million cost

savings to the Group as well as enhancing

our ability to meet customers’ expectations

in terms of delivery times. A re-engineering

of our secondary freight operations was

completed during the year to assist in

meeting our targets.

Other significant achievements include

the upgrading of the inventory forecasting

system in our Leisure Retailing Division and

enhancing our stock receipting process

in BCF and Ray’s Outdoors stores. These

activities are designed to grow sales and

reduce out-of-stock while investing less in

the way of inventory purchases.

Finally, we have trialled the use of ‘drop

ship’ functionality for our Auto Trade Direct

business, which is intended to enhance our

range without the consequent investment

in inventory.

Lastly, the Group embarked on the

integration of the Sports Retailing Division

into the broader Group, including the

major project of moving the division onto

the same IT platform as the rest of the

Group. Our finance and property areas

were completed during the year, with all

other functions to be completed prior

to Christmas 2013. The IT platform will

underpin the growth of the Sports Division

over the long-term, enabling the division to

fully benefit from the Group’s supply chain

and sourcing capabilities.

In order to differentiate ourselves from our competitors and to provide a seamless customer experience regardless of the channel they use to engage with us, as a Group we must ensure:

• We understand our customers’ needs and wants

at a detailed level and we communicate with our

customers in a timely and relevant way;

• Our supply chain has the capability to deliver

products to customers in line with their

expectations, while ensuring our inventory levels

are as efficient as they can be; and

• We work productively as an organisation, to

maintain our cost competitiveness and maximise

the time we spend in value-adding activities,

such as product & range selection and customer

interaction.

GROUP DEVELOPMENT12


CORPORATE RESPONSIBILITY

We are committed to achieving and demonstrating profitable and sustainable

growth in a manner consistent with our group values and with our

commitment to social and environmental initiatives for the benefit of our

team, customers and suppliers and the communities in which we operate.

Examples of this philosophy in practise include:

With our fourth group value defined as ‘Care’, we strive to lead by example and invest our time, financial support and resources in a variety of initiatives.

We have a commitment to: paper usage

reduction, power usage reduction,

catalogue paper reduction/recycling, and

customer oil and battery recycling. In

addition, we are a proud signatory to the

Australian Packaging Covenant, working

towards reducing the volume of packaging

used across the Group.

ENVIRONMENTAL INITIATIVES

We have a commitment to supporting

several children’s charities, responsiveness

in times of community crisis, e.g. natural

disasters (fires, floods, earthquakes)

and active participation in improving

community wellbeing, e.g. safe driving and

safe recreation initiatives.

SOCIAL EDUCATION &

PHILANTHROPIC INITIATIVES

We have a commitment to: equal

employment opportunities and to a

bullying, harassment and discrimination-

free work environment, open door

communication and the gathering of

team member feedback, fair trading

practices, team member development

and involvement in negotiations over pay

and conditions, product quality standards,

workplace health and safety and ethical

sourcing.

ETHICAL WORKING &

EMPLOYMENT PRACTICES

CORPORATE RESPONSIBILITY 13


ENVIRONMENT

ETHiCAL PRODUCT SOURCinG

Super Retail Group has continued to

develop our compliance frameworks

governing our sourcing of product from

overseas, including our Ethical Sourcing

and Imported Goods Policies for all our

trade partners. This policy addresses

environmental and socioeconomic criteria

including labour relations, packaging and

environmental requirements. In addition,

the Group has invested in developing our

own quality assessment team in China

to support the specialist independent

auditors periodically engaged to ensure

that requirements are understood and that

compliance is maintained by trade partners.

PACkAGinG OPTiMiSATiOn PROjECT

In addition to the above, our packaging

team overseas liaises with suppliers on a

regular basis to ensure they are complying

with our packaging specifications. To this

end, last year we reduced a significant

amount of waste through our overseas

packaging optimisation project, which

involved reducing air space and changing

packing methods to reduce the amount of

packaging material.

The Group’s existing compliance and

quality assurance programs include use of

accredited auditors to inspect and test to

certify that products meet Australian

legal requirements, to ensure that good

quality, safe and innovative new products

are provided to customers and are good

value for money.

EnviROnMEnTAL MAnAGEMEnT SYSTEM (EMS)

As part of the Group’s EMS development,

a Committee has been formed to assist

with the EMS implementation and drive

environmental initiatives including the

reduction of waste, packaging and energy

consumption.

AUSTRALiAn PACkAGinG COvEnAnT (APC)

The Group is committed to establishing

a framework for the effective life cycle

management of consumer packaging

through an educational approach with

our team, our trade partners and our

customers. Since becoming a signatory

to the Australian Packaging Covenant

in July 2008, the Group has embraced

the principles of product stewardship

to ensure the environmental impact of

new or existing packaging is continuously

monitored and minimised, via a

collaborative approach with our trade

partners.

During the year, the Group has continued

to develop processes that embody the

principles of product stewardship with

an aim to continually improving our

environmental impact with respect to

packaging and waste management via:

• Development of internal policies and

procedures, such as the Sustainable

Procurement Policy, to govern product

packaging and operations in accordance

with the Sustainable Packaging

Guidelines;

• Extension of recycling processes within

current waste management activities to

reduce waste disposal;

• Promotion of existing recycling activities

to customers and team members to

improve knowledge and awareness of

recycling options;

• Use of recycle logo in our packaging and

catalogues to encourage waste recycling;

• Regular articles on waste and

environmental topics in our internal

media to increase our team members’

awareness;

• Engaging with our waste management

provider on a regular basis to improve our

waste management practices;

• Inclusion of environmental and APC

compliance checks in our internal audits;

• Monthly waste reports to the Board and

retail managers to monitor and improve

our recycling rates; and

• Development of a Waste Management

Plan to reduce waste and increase

recycling.

In July, the APC released their annual report

ratings for signatories to the Australian

Packaging Covenant. The APC congratulated

22 signatories that have achieved the

highest results in their industry category.

Super Retail Group was recognised as

one of two high achievers in the Retail

category, with our annual APC report rating

increasing from 3.7 to 4.3 stars (out of a

possible 5).

CUSTOMER AUTOMOTivE BATTERY RECYCLinG

In accordance with our Environmental

Policy, the Group continues to explore

options to offer our customers the ability

to return directly to our retail stores

selected products which will be collected

and distributed to recycling facilities.

Supercheap Auto now accepts used car

batteries in all retail stores. These are

collected and returned to a recycling facility

where the lead and plastic is reused in

manufacturing new products. In addition

to this, the Group continues to explore

other recycling opportunities as an added

service and convenience to our customers

in support of the environment.

SUpER RETAIL GROUp WAS RECOGNISED By ThE AUSTRALIAN pACkAGING COVENT AS A hIGh AChIEVER, WITh OUR ANNUAL ApC REpORT RATING INCREASING TO 4.3 STARS OUT OF A pOSSIBLE 5.

ENVIRONMENT14


CATALOGUE PAPER REDUCTiOn/RECYCLinG

Super Retail Group is committed to using

recycled paper for catalogue printing

and reducing advertising waste through

greater targeted delivery. Through our

major printing and distribution partners,

Super Retail Group uses paper which is

PEFC certified and comes from sustainably

managed plantation forests. Similarly,

our use of customer targeting software

and greater emphasis on email marketing

has enabled us to reduce catalogue

distribution quantities with little or no

loss in effectiveness. A great win for the

environment and our business.

POWER USAGE REDUCTiOn

We continue to explore opportunities to

reduce power usage and monitor company

performance. These include:

• Organisational culture initiatives -

educating team members on how to

reduce power usage;

• Structural initiatives – building

specifications, e.g. Super Retail Group

is currently trialling heat reflective roof

paint and efficient lighting fixtures to

assess the benefits;

• Energy saving devices and control

equipment, e.g. ‘smart’ thermostats, light

sensors; and

• Procedural initiatives – optimising the

hours of operation of equipment, e.g.

air conditioning, lighting and illuminated

signage through timers & PE cells.

ENVIRONMENT 15


COMMUNITY

Super Retail Group is a corporate supporter of children’s charities

including @Heart Inc. (NZ), CanTeen (Bandanna Day), SIDS & Kids (Red

Nose Day) and BrashA-T; raising over $350,000 in 2012/13. The Group’s

involvement with the charity BrAshA-T includes developing a range of

promotional products sold exclusively throughout our Australian retail

stores each year. This promotion assists in raising awareness and much

needed research funds for the disease Ataxia-Telangiectasia (A-T) which

is a rare degenerative disorder that first shows during early childhood.

It is a complicated illness that affects a number of different parts of the

body, particularly the brain and the immune system.

Amart Sports takes great pride in supporting its Community Kickbacks

initiative. Free to join and open to all registered clubs and schools, the

program offers a 5 per cent rebate on all member purchases. Clubs and

schools accrue credits that they can then redeem to buy or upgrade

equipment. Last year, through the Community Kickbacks initiative,

Amart Sports contributed $750,000 to grass roots sports and will

continue in its mission to encourage young people’s participation in

sports and activities.

As part of BCF’s community sponsorship program for the Australian

Volunteer Coast Guard (AVCG) and Marine Rescue NSW (MRNSW),

the team has raised over $220,000 through its in-store “round-up”

initiative throughout the year. This is a significant achievement for the

BCF team and we are proud to assist in raising funds and awareness

for the role the Coast Guard and Marine Rescue play in marine safety

and protecting the wellbeing of Australians; many of whom may be

valued BCF customers. The funds raised will be distributed between

the flotillas and will assist AVCG and MRNSW in search and rescue,

purchasing vital rescue equipment and public boating education. In

addition to supporting the AVCG and MRNSW as well as numerous

other charities, BCF continues to hold a strong affinity with the

environment by promoting sustainable fishing practices and a generally

environmentally responsible ethos. This is underlined by our decision

in 2010 to remove plastic bags from the business, which has been well

received by customers and is now being emulated by other retailers.

In 2012 FCO announced a partnership with New Zealand’s

primary maritime search and rescue service, Coastguard NZ. The

organisation comprises more than 2,140 dedicated and highly

trained volunteers, 92 dedicated search and rescue vessels and two

small fixed wing single engine aircraft. FCO supports the Coastguard’s

fundraising efforts via an in-store ‘round up’ function. This allows

customers to simply roundup the value of their transactions to the

dollar value they nominate. A number of additional activities are

undertaken throughout the year such as the Mayday appeal, which

assists Coastguard NZ in raising additional funds to make New Zealand’s

waterways a safer place for boaties. The initiative has so far raised over

$38,000.

COMMUNITY16


Goldcross Cycles has continued its strong community focus supporting

State Cycling bodies and the National Cycling Promotional Fund via

promotional activity on the Goldcross Cycles website, email, catalogues

and in store. Goldcross Cycles has supported mass participation bike

rides such as Brisbane Bike Week, Ride to Work day, Brissie to the

Bay, Victorian Schools Cycle Championships, BSX and many other

smaller events. The Goldcross Cycles team has visited local schools and

businesses to run free cycling clinics and donate products to school

raffles. We continue to run our free Smartrider courses, which are open

to the community and teach safe cycling and basic bike maintenance

techniques.

Since July 2011 Ray’s Outdoors’ customers have assisted us in our

support of Cancer Council Australia’s vision to minimise the threat of

cancer to all Australians. The generosity of customers has contributed

much-needed funds for cancer research, prevention and support

services by simply rounding up the value of their purchase, or by

making a standalone donation at the register. Ray’s Outdoors achieved

approximately $135,000 in the first year of the Round-up program and

in our second year we raised an additional $174,000.

Rebel is excited to partner with The Heart Foundation and its iconic

Jump Rope for Heart Program. Rebel’s support for Jump Rope for

Heart includes providing sporting goods and equipment as part of

the fundraising prize incentives and leverage of our communications

channels to further help the Heart Foundation raise awareness of heart

disease. Over the past year this has amounted to $600 000 towards the

cause.

Fundraising support is also provided to Blue September, which raises

awareness about cancers that affect thousands of Australian men each

year; some of which may be preventable through lifestyle choices.

Funds raised assist Blue September in their continuing efforts to

increase awareness of cancer in men, whilst supporting the Australian

Cancer Research Foundation and Australian Prostate Cancer Research

in funding vital cancer research. Rebel is also the major sponsor of the

NewsLocal Junior Sports Stars awards. The program recognises and

celebrates junior sporting talent aged between 10 –16 and brings the

endeavours and successes of these future champions to the attention

of their local area, giving the community the opportunity to embrace

and support their sports stars of the future.

Following Australia’s highly-successful Supercheap Auto – Driving Home

Road Safety campaign, Supercheap Auto has continued the partnership

with driversafety.com.au and V8 Supercar champion Russell Ingall to

support CARMA, a landmark national road safety campaign aimed at

improving road users’ awareness, behaviour and attitude to driving on

Australian roads. A series of community service announcements and

a dedicated CARMA website www.yourcarma.com.au feature useful

driver tips and avenues to practical driver training for all Australian

drivers. Supercheap Auto has also embarked on a behavioural and

skill-based road safety education campaign for Queensland schools.

The school education initiative is designed to better equip both young

drivers and their parents with well researched skills and techniques to

create better drivers on our roads.

COMMUNITY 17


SYSTEMS

Super Retail Group’s iT Systems are being

strategically developed to meet the

demands of a major specialty retailer

undergoing significant growth and

dynamic change as part of our ongoing

shift to becoming a multi channel retailer.

OUR CURREnT iT STRATEGY ADDRESSES THE FOLLOWinG CRiTiCAL nEEDS:

• Support our team members in providing

the best possible service to customers;

• Deliver a platform that leverages group

scale to support consistent business

processes across all brands;

• Develop business processes to maintain

the unique characteristics of each brand;

• Provide appropriate security and

resilience to keep the business operating

effectively and efficiently;

• Scalability to support future organic

growth;

• Simplify the integration of new businesses

as opportunities occur; and

• Contribute business value by using IT to

solve existing problems or provide new

opportunities.

We took the first step in delivering this

strategy in 2002, with the installation

of SAP as our core Enterprise Resource

Planning (ERP) system. SAP is a leading ERP

system and provides key merchandising,

finance, human resources and customer

relationship capabilities.

Our focus is on enhancing the Group’s

multi-channel capability, improving the

effectiveness of our supply chain and

supporting our retail divisions in the

development of their customer offers. We

help our customers “shop their way” by

providing shopping choices across multiple

channels as well as choices in how the

customer’s order can be fulfilled. Our

customers can buy products through our

online or physical stores as well as through

online aggregators such as eBay.

The suite of applications we use, from

leading vendors such as JDA, Manhattan

Associates and SAP, integrated with our

own developments, help customers to

choose and get the product in the most

convenient way. We have the ability for our

customers to “click-and-collect” the product

from a store or to deliver direct to them

from our hub stores, distribution centres or

to “drop ship” products from third parties

for a limited range of products.

DURinG 2013/14, WE WiLL DEvELOP OUR CAPABiLiTiES in THE FOLLOWinG AREAS:

• Our initial ‘store of the future’ trials will

be rolled out to additional stores; this

supports customer access to rich media

in stores to support the new store layouts

focused on customer solutions. This is

supported through touchscreens in store

as well as wifi access for customers; and

• We will extend our data warehouse

capabilities using SAP’s HANA

infrastructure to introduce a real-time

analytics and visualisation capability.

OUR CORE SAP EnviROnMEnT iS AUGMEnTED BY inDUSTRY-LEADinG APPLiCATiOnS AnD PARTnERSHiPS in OTHER AREAS, inCLUDinG:

• Manhattan Associates’ system continues

to support our significant growth in

warehouse management needs;

• JDA systems are being introduced and

extended to improve our supply chain

planning and execution;

• Optus will be taking on our Australian

telecommunications services with

our New Zealand needs delivered by

Vodafone New Zealand;

• IBM delivers our robust, scalable and

reliable server infrastructure;

• Cisco Systems provides IP networking

technologies and services; and

• LANDesk’s suite of support tools allows

a small support team to administer a

network of over 4,000 devices.

Information Technology has been, and will continue to be, a critical success factor for Super Retail Group by providing a major competitive advantage.

WE hELp OUR CUSTOMERS “ShOp ThEIR WAy” By pROVIDING ShOppING ChOICES ACROSS MULTIpLE ChANNELS AS WELL AS ChOICES IN hOW ThE CUSTOMER’S ORDER CAN BE FULFILLED.

SYSTEMS18


SUPER RETAIL COMMERCIAL

Super Retail Commercial (SRC) is the trading arm of Super Retail

Group which is focused on developing new business opportunities

across a variety of non-retail channels that deliver incremental

sales for the Group and its brands. The business was launched

in 2012 to leverage off the Group’s sourcing and supply chain

capabilities, and to focus on building long term commercial

relationships with a range of businesses throughout Australia,

new Zealand and Asia Pacific.

Super Retail Commercial prides itself on delivering value via

innovative business solutions through strong partnerships that

are supported by a passionate team offering excellent customer

service.

Over the past year Super Retail Commercial has been focused on

developing business and capability within three important sales

channels, as listed below.

Our rewards and incentives arm, Supergifts, is a web based business

that allows commercial customers to purchase gift cards from all

of the Group’s retail brands. Over the past three years this area of

the business has enjoyed steady growth for our brands along with

the addition of the Rebel and Amart Sports brands. The addition

of recent digital gift cards into the SRC offer will add another

dimension and enable us to provide low cost fulfilment in the B2B

channel and the ability to target new customer sectors. Coupled

with our high level of customer service and the ease of use via the

Supergifts website, this should see us achieve further growth in this

channel.

REWARDS & INCENTIVES

Over the past year Super Retail Commercial has developed a

successful product replacement program for a number of Australian

insurance companies. SRC supplies gift cards and products via Super

Retail Group’s store network to assist insurance claimants rebuild or

restore their possessions. In the upcoming year we plan to extend

our operations by partnering with new insurers within Australia and

New Zealand and leveraging a combination of Super Retail Group’s

high-profile brands.

INSURANCE

In 2013 Super Retail Commercial began exporting automotive

products to retailers in Nauru and Papua New Guinea. In 2014

we will continue to develop our export capabilities and expand

the distribution network for the Group’s retail brands’ products

across the Pacific Rim. In 2014 we also plan to develop a wholesale

distribution program and explore opportunities in the convenience

market.

WHOLESALE & EXPORT

SUPER RETAIL COMMERCIAL 19


INTERNATIONAL OPERATIONS

The year saw our attention turn to supporting the Sports Retailing

Division and introduce new exclusive ranges to Rebel and Amart

Sports. To accommodate the pace of growth and change within

the business and inside the engine room of China, we expanded

our office space in Shanghai and are presently relocating to new

facilities in the developing new CBD of Hangzhou.

This year International Operations built on last year’s extended

breadth and scope of services to enable efficient international

source-to-store supply chain capability. We leveraged international

store-ready processing facilities in Singapore and Hong Kong to

further streamline the movement of goods from source to store for

Rebel and Amart Sports.

This year, the team rose to the challenge of handling significant

growth in imports within Leisure Retailing, as the BCF business grew

and new categories were introduced in Ray’s Outdoors.

Our team continued to develop product category specialisation and

leverage cross-brand knowledge and skills to tailor products to best

suit customer requirements. Team development and high retention

rates allowed for internal team member promotions as Supercheap

Auto continued to power ahead, requiring additional resources to

manage the many exciting product opportunities.

COnTinUAL iMPROvEMEnT

Productivity improved at so many levels throughout the supply

chain whilst the team continued to seek the best sources of supply.

Auditing factories, designing packaging and artwork, co-ordinating

production schedules, quality assurance and border management

right through to pre-shipment inspections underpins the effective

dispatch of goods to Australia and New Zealand.

Our packaging optimisation program consistently achieved 18.1

per cent pallet utilisation improvement and 7.8 per cent container

utilisation improvement, reflecting the Group’s commitment to

sustainability and responsible approach to reducing packaging

waste whilst delivering commercial benefits.

The continued alignment of off-shore capabilities and integration

to process productivity programs will support the new domestic DC

network under development in Australia.

The year ahead will offer exciting opportunities to not only deliver

good product and extract value from our supply chain infrastructure

but to work closely with valued international trade partners as

they manage other regions’ volatility. Our strong relationships and

consistency is paying dividends as suppliers also help us to identify

new products with the new features and value propositions for our

customers.

The International Operations team continues to explore new horizons seeking new products and new ways to add value to the business.

ThE OFF-ShORE ExpANSION OF OUR LOGISTICS SERVICES hAS LEVERAGED INTERNATIONAL STORE-READy pROCESSING FACILITIES IN SINGApORE AND hONG kONG TO FURThER STREAMLINE ThE MOVEMENT OF GOODS FROM SOURCE TO STORE FOR REBEL AND AMART SpORTS.

ThE yEAR AhEAD WILL OFFER ExCITING OppORTUNITIES TO NOT ONLy DELIVER GOOD pRODUCT AND ExTRACT VALUE FROM OUR SUppLy ChAIN INFRASTRUCTURE BUT TO WORk CLOSELy WITh VALUED INTERNATIONAL TRADE pARTNERS AS ThEy MANAGE OThER REGIONS’ VOLATILITy.

INTERNATIONAL OPERATIONS20


LOGISTICS

investment in our supply chain is entering the most critical and

important development period in the Group’s history. We have

commenced the construction of two new distribution centres (DCs),

the first of which is based in Sydney and will open in the first quarter

of 2014, followed closely by the second site, in Brisbane, in the first

quarter of FY15. The re-engineering of the existing distribution centre

at Altona in Melbourne has also commenced.

The introduction of a new voice picking system at all distribution

centres commenced in August 2013. Both the refreshed physical

infrastructure and systems add to the ongoing investment in safety,

capacity and capability to support planned growth over the next ten

years, with resulting lower overall supply chain costs.

In preparation for the commissioning of the new distribution centres,

secondary freight services (DC to stores) was tendered and finalised in

2013, resulting in reduced costs and enhanced capability. Our focus also

continues on the development and implementation of enhanced online

/ B2B transport and fulfilment capability, especially service experience.

Inventory stock turns are improving across all brands and will

continue to be a main focus (with quantified targets) into 2014 and

2015. Optimum inventory levels and a supporting forecasting and

replenishment system are an adjacent enabler for the new DC and

freight network, helping us achieve our speed to market and stock turn

objectives.

BOTh ThE REFREShED phySICAL INFRASTRUCTURE AND SySTEMS ADD TO ThE ONGOING INVESTMENT IN SAFETy, CApACITy AND CApABILITy TO SUppORT pLANNED GROWTh OVER ThE NExT TEN yEARS, WITh RESULTING LOWER OVERALL SUppLy ChAIN COSTS.

OpTIMUM INVENTORy LEVELS AND A SUppORTING FORECASTING AND REpLENIShMENT SySTEM ARE AN ADjACENT ENABLER FOR ThE NEW DC AND FREIGhT NETWORk, hELpING US AChIEVE OUR SpEED TO MARkET AND STOCk TURN OBjECTIVES.

LOGISTICS 21


The Supercheap Auto business is a

thriving specialty retail business, with 288

stores across Australia and new Zealand,

specialising in automotive parts and

accessories. We also stock a wide range

of tools and accessories for the DiY home

handyman as well as products for travel,

touring, outdoors, garage and the shed.

There are many and varied activities that

continue to drive and grow the Supercheap

Auto business; below are some of the key

strategies along with a preview of some

new and exciting initiatives.

MULTi-CHAnnEL CAPABiLiTY

Our range is now available for sale online

in both Australia and New Zealand, which

we see as a key growth platform for the

future. We have also recently launched a

“Click & Collect” (order online and pick up

from your local store) service and strongly

believe we must continue to improve

and develop our multi-channel capability,

allowing our customers to shop their way.

BRAnDS AnD nEW PRODUCTS

Driving quality known and private brands

is a very important element in growing our

business and building integrity and trust

with our customers. We continue to launch

thousands of new and innovative products

each year faster than our competitors and

we firmly believe that new products are the

lifeblood of any good retail business.

FiTMEnT PROGRAM

The fitment program was launched in

2007, driven by customer demand for basic

items to be fitted for them at the time of

purchase. The fitment program continues

to be strongly supported by our customers,

with over 233,000 fitments performed

last year alone. Our friendly team loves to

go above and beyond and this service is

another great way for our team members

to engage, surprise and delight our valued

customers.

CLUB PLUS LOYALTY PROGRAM

Following the success of the New Zealand

launch in May 2012, we launched the Club

Plus loyalty program to our Australian

network in September 2012, leveraging our

Bathurst 1000 sponsorship as the major

launch platform. We set what we thought

would be a challenging target for year one

at 400,000 club members. The response to

our club program has been overwhelming

and it is pleasing to say we underestimated

the initial target - our club is now 500,000

strong.

Some benefits for club members are the

‘Price Promise’, which provides a credit

to the member’s card when items they

purchase go on sale at a better price, along

with receipt-free warranty and much, much

more planned for this year.

The program rewards loyalty and provides

a window into individual purchasing habits.

This gives us the opportunity to send

targeted offers to members without large

marketing costs attached, increasing the

frequency of these customers’ visits to our

stores.

SUPERCHEAP AUTO STORE OF THE FUTURE PROjECT

Our store refurbishment program

commenced in 2006 and is now drawing

to a conclusion, with more than 270 stores

now completed. This has coincided with

the Group’s launch of the Engaging and

Integrated Customer Experience program,

creating a platform for us to review and

redefine the in-store experience of the

future.

The program vision is “to build an engaging

and integrated customer experience that

provides solutions and real reasons to shop

in-store, supporting our customers getting

the most out of their shopping experience

and leisure time”.

We took this opportunity to ensure

Supercheap Auto stores remain the first

choice destination in the categories in

which we operate, launching the store of

the future project in September, 2012 with

our target to develop the best auto store

in the world. As a result of this initiative,

we launched two prototype stores in

Queensland during April and May 2013,

the first at Caboolture and the second at

Lawnton.

AUTO RETAILING

DRIVING QUALITy BRANDS IS A VERy IMpORTANT ELEMENT IN GROWING OUR BUSINESS AND BUILDING INTEGRITy AND TRUST WITh OUR CUSTOMERS. WE CONTINUE TO LAUNCh ThOUSANDS OF NEW AND INNOVATIVE pRODUCTS EACh yEAR FASTER ThAN OUR COMpETITORS AND WE FIRMLy BELIEVE ThAT NEW pRODUCTS ARE ThE LIFEBLOOD OF ANy GOOD RETAIL BUSINESS.

AUTO RETAILING22


STORE FEATURES

Updated look and feel:

• Updated external signage and finishes to

reflect the new store;

• Revised store layout sorting and grouping

products by usage occasion or project; and

• Improved store navigation signage, aisle

markers and internal signage with updated

colour palette.

Customer engagement:

• Customer solutions kiosk providing in-store

access to a wide range of product and “how

to” information;

• Product feature displays incorporating

informational touch-screens or TVs;

• Free wireless internet access for customers

combined with use of QR codes to provide

in-store access to “How to” and product

information; and

• Engaging displays incorporating fun and

theatre.

New and improved services:

• Vehicle diagnostics service providing fault

code reading, reset and analysis, supporting

increased customer involvement in their

vehicle’s care and maintenance;

• Paint mixing service providing over 74,000

auto paint colours mixed in-store;

• Home delivery of bulky and heavy products;

and

• Designated Click & Collect pick up point for

online purchases.

Improved customer service:

• Team member development program;

• Solutions-focused service model;

• Increased frequency of stock deliveries

supporting improved in-stock position; and

• Customer call-buttons linked to team member

walkie-talkies for improved service.

All new elements will be trialled and the

successful initiatives rolled out to future stores.

ThE RESpONSE TO OUR CLUB pROGRAM hAS BEEN OVERWhELMING AND IT IS pLEASING TO SAy WE UNDERESTIMATED ThE INITIAL TARGET - OUR CLUB IS NOW 500,000 STRONG.

AUTO RETAILING 23


With more than 100 stores, BCF Boating

Camping Fishing is the largest outdoor

retailer in Australia and is recognised for

having the widest quality product range

and most helpful team members in the

market. BCF offers everything customers

could possibly need for their next outdoor

adventure under one roof, with the same

honest and reliable advice that you would

get from a ‘mate’.

AUSTRALiAn CATALOGUE AWARDS

BCF was recognised at the 2012 Australian

Catalogue Awards, which were held in

August. These awards were judged by a

group of more than 40 industry experts

drawn from the print, advertising and retail

sectors. From over 650 entries, BCF was

selected the winner of the ‘Technology on

Paper’ category (up to 250,000 catalogues)

for our ‘Barra Championship’ entry. We

also ranked highly for our ‘Father’s Day’

catalogue, securing a place as a finalist. The

judges stated that this year brought a high

level of innovation and quality.

nEW STORE OPEninGS

This year marked a milestone for the BCF

business, with the opening of our 100th

store in Cleveland, Queensland. The event

was marked by a national club night (a long

journey from the inception of BCF in 2006).

During the financial year, BCF extended

our physical network with the opening of

several new stores, including

• Emerald, QLD

• Busselton, WA

• Taree, NSW

• Nerang, QLD

• Port Adelaide, SA

• Mt Barker, SA

• Griffith, NSW

PLAnOGRAM PROjECT

In the coming year, all BCF merchandise

categories will be fully planogrammed,

which will offer:

• Improved space efficiency in store;

• Maximised sales opportunities for new

initiatives;

• Consolidation of current range and

stock display leading to an improved

shopping experience for customers; and

• Greater consistency in all stores and

aid the store team in merchandising

efforts.

Planograms will link to range review

process to enable stronger focus on range

planning and inventory metrics.

STORE OF THE FUTURE

BCF’s commitment to delivering an

engaging store environment for our

customers requires continual assessment

and adaption. During the year we made the

decision to pilot a concept store, with the

internal working title, ‘Store of the Future’,

as a platform to trial new technologies,

layouts, fixtures, fittings and signage.

One of the major focus points of the

concept was to increase customer

engagement in store by increasing the level

of information provided about product

selection and use, communicated through

technology and signage. Another aspiration

of the concept was to enable customers

to readily touch and feel products that

were previously housed in a cabinet, while

still retaining product security. Particular

attention was paid to putting the fishing

reel category in front of customers to

enhance their tactile experience. After

experiencing the product first hand, the

customer then takes a selection card to

the front counter. From here the register

operator can quickly and easily access the

product, which is located behind the front

counter.

So far, feedback about the new store format

has been incredibly positive from both our

team members and customers. The format

will continue to be assessed before any

future rollouts are committed to, but as

many aspects have been hugely successful,

it is likely that the new store concept will

naturally feed into the existing network.

LOCAL LEvEL MARkETinG

This year BCF launched ‘Think Global,

Act Local’, a new sponsorship initiative

designed to help build mutually beneficial

relationships between our stores and local

organisations. To encourage team members

to get involved with their local community,

an annual sponsorship budget of $1,000

was allocated to each BCF store. With the

final approval of their Area Manager, team

members are now empowered to select

which local boating, camping and fishing

clubs and organisations they would like to

sponsor. With over 300 local level events

being supported throughout the year, the

initiative has been very positive for both

the local community and team members.

• Cleveland, QLD,

• Kingaroy, QLD

• Belrose, NSW

• Gympie, QLD

• Belconnen, ACT

• Glendale, NSW

• Smithfield, QLD

ThIS yEAR MARkED A MILESTONE FOR ThE BCF BUSINESS, WITh ThE OpENING OF OUR 100Th STORE IN CLEVELAND, QUEENSLAND.

LEISURE RETAILING

LEISURE RETAILING24


CLUB BCF

Our club team has been busy this year with

approximately 18,072 members attending the

82 club nights hosted Australia-wide. This year

we also launched nation-wide club events, with

two held throughout the year, and introduced

exclusive everyday club deals. The ‘Swipe to

Win’ competition, which kicked off in January

2011, has gained further momentum, with

one lucky BCF customer per store scoring a

$50 BCF gift card each month. With $50,000

worth of prizes distributed so far, the initiative

has encouraged increased participation by

members in our Club BCF activities.

Throughout the year, our club members have

enjoyed access to more exclusive competitions

than ever before! Among the many impressive

giveaways, one lucky Club BCF member won

a trip to XXXX Island with a mate, valued at

$5000, while another claimed the Barra Champ

title, taking home a BCF fishing pack, valued at

$1000, 25% off all in-store purchases for a year,

plus the ultimate bragging rights of being the

BCF Barra Champ!

WITh MORE ThAN 100 STORES, BCF BOATING CAMpING FIShING IS ThE LARGEST OUTDOOR RETAILER IN AUSTRALIA AND IS RECOGNISED FOR hAVING ThE WIDEST QUALITy pRODUCT RANGE AND MOST hELpFUL TEAM MEMBERS IN ThE MARkET.

LEISURE RETAILING 25


As ‘the gateway to your next getaway’,

Ray’s Outdoors offers families everything

they need to enjoy the outdoors, from

the backyard to the bush. Recognised as

the market leader for quality camping

and outdoor apparel products and with

more than 50 stores across Australia, Ray’s

Outdoors provides a vast range of camping

gear, tents, outdoor furniture, barbeques,

kayaks and apparel including footwear and

work wear.

This year the business has further

expanded into Tasmania, with three stores

now trading in Launceston, Moonah and

Devonport.

nEW STORE OPEninGS

Ray’s Outdoors opened three new stores

this financial year, extending our presence

to Hervey Bay in Queensland, Traralgon in

Victoria and Devonport in Tasmania.

The Mackay Camping World store

was acquired during the year and was

rebranded as Ray’s Outdoors Mackay. The

600sqm tenancy is located in a busy bulky

goods precinct and boasts a long history

in the region, celebrating its centenary in

2012.

nEW LOGO/ BRAnDinG REFRESH

This year we evolved the Ray’s Outdoors

identity to better communicate the brand

essence and what we offer to our target

audience. Activities undertaken during the

rebrand project included:

• Logo refinement

With slimmer text and a grey element

added, the updated Ray’s Outdoors

logo appeals to both male and female

customers while remaining true to the

original character.

• Tagline

‘Make the outdoors yours.’ The new

tagline sends a positive message to

inspire our customers and encourage

them to get outdoors.

• Store restructure

A Ray’s Outdoors pilot store has been

refitted to match the new branding. The

outside authenticates the look and feel

of the new logo. The use of shadow

images and grey and red work together

to demonstrate the adventures awaiting

our customers. The refit also includes an

improved store layout to focus on our

Apparel, Footwear, Camping and Tent

ranges.

• Rewards program rebrand

Ray’s Outdoors appeals to the average

Australian family and for this reason, the

retitled Ray’s Rewards communicates

a more down to earth program for our

loyal customers. The rebooted program

structure will also be more financially

beneficial for the brand.

• Catalogue

The new catalogues have a personal

feel and feature images that depict a

positive outdoors lifestyle. The flow and

structure of the catalogues promote the

elements that are of most interest to our

customers.

• Television ads

Our new television commercials have a

strong family focus, linking families to

the outdoors. We have looked to position

Ray’s Outdoors within the great times

that families have outdoors. Our key focus

was to be clearly recognisable as the

enabler of great outdoor experiences.

Ray’s Outdoors’ target audience is families

(parents aged in their late thirties to

mid-forties). Our audience can range from

experts to novices, but primarily they are

looking for enjoyable outdoor experiences.

It’s part of wanting to get the family “off

the grid” and away from television and

computer games. At Ray’s Outdoors, we

want to both inspire and enable these

experiences.

Previously the brand had maintained a very

broad product focus and was struggling to

connect with customers and establish itself

as the destination for camping equipment

and outdoor apparel, as the offer was often

diluted by a focus on outdoor furniture and

barbeques.

Our aim now is for customers to engage

with us on a more meaningful basis, beyond

a basic transaction. Becoming more aligned

with their inspiration and experience allows

Ray’s Outdoors to become a key component

of our customers’ leisure passions.

STORE OF THE FUTURE

Ray’s Outdoors’ first refitted store, in

Frankston Victoria has set the tone for

our new direction. The store incorporates

all new branding, including the logo

and external and internal signage. The

Frankston store layout is tailored to suit

our target audience and showcases our

first camper trailer range and expanded

travel section, which includes the Deuter

and Tatonka range. Outdoor furniture has

been removed and the barbeque range

reduced. The layout of our Frankston store

focuses on first impressions by locating our

‘stand for’ categories - camping, footwear

and apparel - at the front of the store. The

new look and layout has received a positive

response at our new store openings in

Devonport, Hervey Bay and Traralgon.

Ray’s Outdoors Frankston demonstrates

our direction as a family-orientated and

accessible brand and is another element of

our integrated marketing approach.

LEISURE RETAILING

LEISURE RETAILING26


APPAREL AnD FiSHinG REFRESH

A key strategic initiative saw an apparel

and fishing merchandising refresh project

commence in February 2012. Every Ray’s

Outdoors store received new fixtures to

better display apparel; ‘call-out’ brand

signage was supplied for the new fixtures

and for the existing four-way fixtures, to help

differentiate products and brands. There

was also a complete refresh of the store flow,

incorporating a larger and more comprehensive

work wear section.

Our fishing range was extended and on average

each store gained an additional ten gondolas

to reflect this expansion. We have found the

Ray’s Outdoors customer wanted more variety

and a greater family focus in their fishing gear.

All stores have now undergone the apparel

and fishing refresh, and feature the extended

product ranges and new fixtures.

‘MAkE ThE OUTDOORS yOURS.’ ThE NEW TAGLINE SENDS A pOSITIVE MESSAGE TO INSpIRE OUR CUSTOMERS AND ENCOURAGE ThEM TO GET OUTDOORS.



FCO Fishing Camping Outdoors is a

specialist outdoor and leisure retail brand

unique to the new Zealand market. FCO

offers a true one-stop customer experience

and a comprehensive product range

with a specific focus on fishing, camping,

tramping, boating, kayaking and outdoor

apparel. The FCO brand was officially

launched in november 2011, after a period

of extensive planning and research into

the new Zealand market.

CLUB FCO

There have been many FCO success stories

during FY13 but arguably none greater

than the continued success of Club FCO.

Last year our loyalty program had just over

27,000 members, of which 14,000 were

available to communicate with via email.

Due to some great work by the store teams

and some behind the scenes work from the

marketing and CRM teams, club numbers

have continued to soar. Today Club FCO

membership sits at more than 50,000, of

whom, 31,000 are subscribers to our email

communications.

Initiatives such as the Product Guru

program, exclusive club products,

informative eDMs and superb member-only

offers ensure that our FCO club members

are among the most engaged in the leisure

business. These efforts are reflected each

week in the club sales numbers and the

thousands of Club FCO members who

attend the many club events at their local

store.

As the club continues to grow, so in turn

will the Club FCO offering. The FCO team

will continue to deliver new and innovative

ways to ensure our club members keep

their membership cards at the front of their

wallets.

OUTDOOR CHAMPiOnSHiPS

Following the success of our ‘Outdoor

Championship’ photo competition, which

offered FCO customers the chance to

submit their best outdoor adventure photos

and win great prizes, we then took the

promotion to the next level, encouraging

customers to submit outdoor video footage

and mini-films. This competition was

designed to showcase the creativity and

talents of FCO customers doing what they

love.

Eligible videos were required to be between

30 seconds and three minutes in length and

were uploaded to the FCO website, for the

public to scrutinise and cast their votes. The

top ten most popular videos were selected

by a panel of FCO and Super Retail Group

judges, who selected the winning entry

based on brand alignment, creativity and

overall impact.

In total, the entries received more than

4900 online votes and more than 2000

Facebook likes. The judges were in

unanimous agreement, declaring Nick

Binks’s video montage titled “Living for

the next mission” the embodiment of the

FCO brand and the ultimate winner. As

reward for his great work, Nick received

a $5000 FCO gift card and a $5000 travel

voucher that he used for an 11 day trip to

Steward Island (a true outdoor champion’s

destination!)

FCO plans to capitalise on the success of

the inaugural competition and build a

bigger and better competition in FY14.

LEISURE RETAILING

INITIATIVES SUCh AS ThE pRODUCT GURU pROGRAM, ExCLUSIVE CLUB pRODUCTS, INFORMATIVE EDMS AND SUpERB MEMBER-ONLy OFFERS ENSURE ThAT OUR FCO CLUB MEMBERS ARE AMONG ThE MOST ENGAGED IN ThE LEISURE BUSINESS. ThESE EFFORTS ARE REFLECTED EACh WEEk IN ThE CLUB SALES NUMBERS AND ThE ThOUSANDS OF CLUB FCO MEMBERS WhO ATTEND ThE MANy CLUB EVENTS AT ThEIR LOCAL STORE.

LEISURE RETAILING28


FCO OFFERS A TRUE ONE-STOp CUSTOMER ExpERIENCE AND A COMpREhENSIVE pRODUCT RANGE WITh A SpECIFIC FOCUS ON FIShING, CAMpING, TRAMpING, BOATING, kAyAkING AND OUTDOOR AppAREL.

This year alone FCO has:

• served 300,000 customers;

• sold 1.5 MILLION items; and

• sold nearly 2,000 Monster 250 Tackle kits.

SOME FUN FACTS



The Sports Division (incorporating Rebel,

Amart Sports and Goldcross Cycles) has

had an outstanding year with like-for-like

(LFL) sales of 8.0 per cent. This growth was

on the back of 5.6 per cent growth the

prior financial year, and was underpinned

by several significant achievements:

• Every geographical region achieved its

budget for the year

• Ten stores achieved sales growth above

$1m on the prior year

• Four stores achieved sales growth above

$950k on the prior year

• 41 stores achieved sales growth above

$500k on the prior year

• 26 team members achieved “Platinum

Club Status,” each delivering over $200k

in GP$ as our best sales performers for

the year.

Aside from this outstanding financial

performance, several pieces of work

were identified as critical to rebuilding

the business upon acquisition, which are

outlined below.

AGED invEnTORY CLEARAnCE

From the moment we acquired the

business, a lot of work was undertaken to

identify and clear aged inventory which

at the time of acquisition represented 14

per cent of Rebel’s inventory and 18 per

cent of the Amart Sports inventory. We set

ourselves a goal of reducing aged inventory

to five per cent as an industry-best

benchmark, and we are pleased to have

achieved 3.5 per cent at year-end in both

brands. As a result new product ranges

are able to take front and centre in stores,

much to customers’ delight.

TEAM EnGAGEMEnT AnD CORE vALUES

Just prior to acquisition, the Rebel and

Amart Sports businesses participated in

an engagement survey which delivered a

low score of 42 per cent (the retail industry

averages at 55%). Over the past twelve

months we have worked hard to identify

the most significant issues and whilst we

still have a lot of work to do in this area,

we have made some progress with the

survey result for 2013 coming in at 60 per

cent. Analysis shows our stores with higher

engagement scores have higher average

transaction values and lower shrinkage

rates than stores with lower engagement

scores; so not only do we see a financial

benefit in improving our team member

engagement, our team members will enjoy

working for us as we strive to become an

employer of choice.

SYSTEM UPGRADES

With ambitious plans to grow the Rebel

and Amart Sports brands, we realised the

systems we were using were inadequate,

constraining our potential future store,

sales and margin growth. They would

also restrict our ability to tap into group

resources that would deliver cost benefits

to the business such as supply chain,

logistics, CRM and the merchandise

sourcing office in China.

SAP has already been rolled out to the

Sports Retailing Finance department, which

has enabled a greater level of control and

visibility around our financial accounting.

Meanwhile, a very capable project team

from across the Group has been working

on the broader SAP implementation project

which will see SAP rolled out to the rest of

the business in September 2013.

In addition to SAP we will be rolling out

a new stock allocation system which will

allow us to interact with our trade partners

much more efficiently when ordering stock,

and see a significant reduction in hours

spent on administrative tasks within the

merchandise buying team. This system will

also be implemented in September 2013.

SUPPLY CHAin AnD EXCLUSivE BRAnDS

We are working in particular with our

apparel trade partners to have 70 per cent

of our apparel ranges delivered to store

already ticketed and on hangers. This will

allow us to get product from the receiving

dock to the shop floor much more quickly

and therefore maximise sales opportunities.

There is also a lot of work being done in

exploring ex-Asia freight consolidation

where we can capitalise on the Group’s

sophisticated supply chain and logistics

capabilities to pick up our stock direct at

SPORTS RETAILING

ThE kEy WORD FOR ThE SpORTS DIVISION IN Fy14 IS ‘CONSISTENCy’ AND WE WANT OUR CUSTOMERS TO ENjOy WORLD-CLASS ShOppING ExpERIENCE WITh US EVERy TIME AND EVERyWhERE ThEy ShOp WITh US.

SPORTS RETAILING30


the trade partner’s source in Asia and deliver it

directly to store or into our distribution centre

much more efficiently and cost effectively.

In particular, we are looking to do this with

our exclusive product, a portfolio which has

grown recently to include Reebok, Umbro,

New Balance apparel, Super Natural and Under

Armour, among others.

We are also producing our own-brand product

via the sourcing office in China which allows

us to not only tap into better supply chain and

logistics processes, but better pricing and more

consistent quality from having our own highly

capable team based at directly in country of

origin.

MARkETinG OvERHAUL

During FY13 the Sports Division created our

own in-house graphic design and content

management team which has not only allowed

us to operate more cost-effectively than

outsourcing work to agencies, it has allowed us

to generate a greater quantity and quality of

content much more quickly.

Additionally, we have reworked our social

media strategy with segmented Facebook

communities (Amart Sports, Rebel Women,

Rebel Running, Rebel Football) and Twitter. We

have also sampled a lot more digital advertising

including YouTube, a space we will look to move

more into in FY14.

Our online stores for Rebel, Amart Sports and

Goldcross Cycles continue to deliver “more than

just a store”. With engaging content, product

and brand information, we will be moving the

websites onto the common group platform

following the SAP implementation and this will

deliver an even more robust environment in

which to grow our business this year.

WE WILL BE ROLLING OUT A NEW STOCk ALLOCATION SySTEM WhICh WILL ALLOW US TO INTERACT WITh OUR TRADE pARTNERS MUCh MORE EFFICIENTLy WhEN ORDERING STOCk, AND SEE A SIGNIFICANT REDUCTION IN hOURS SpENT ON ADMINISTRATIVE TASkS WIThIN ThE MERChANDISE BUyING TEAM.

SPORTS RETAILING 31


REBEL REBRAnDinG

Rebel had a logo and name change during FY13, along with new store

designs to better showcase fresh and innovative product, as well as the

rollout of our head-to-toe footwear and apparel ranges. This world-best

store design has been deployed in our Warringah Mall, Macquarie Centre,

Mid City Centre, Brisbane City, Canberra Civic and Fountain Gate stores

and the new Warrawong store.

AMART SPORTS EXPAnSiOn

Amart Sports launched seven stores into Victoria, with another three to

open very quickly during the first half of FY14. Many of these stores were

converted from Goldcross Cycles stores, which has allowed us to deliver a

better overall result to the Group as well as quickly establishing the Amart

Sports brand in Victoria.

This rollout has demonstrated the ‘two-customer two-brand’ strategy that

we developed at the time of acquisition was the right one and with the

Rebel business unaffected by the launch of Amart Sports into the Victorian

marketplace, we are now focussing on launching the brand into Sydney,

starting with a new store in Penrith in October 2013.

GOLDCROSS CYCLES inTEGRATiOn

Goldcross Cycles has been wholly integrated into the Sports Division

which offers many more avenues in which to showcase the brand: ranges

in all Rebel and Amart Sports stores nationally (over 150 stores), 150sqm

store-in-store concepts within all new and refurbished Amart Sports stores

nationally, as well as the Rebel, Amart Sports and Goldcross Cycles online

stores.

The aged inventory in the Goldcross business has been cleared, and we

have new ranges and brand strategies that will roll out to all of these store

formats in FY14.

FY14

The key word for the Sports Division in FY14 is consistency and we want

our customers to enjoy world-class shopping experience with us every

time and everywhere they shop with us.

We will achieve this through an exciting and engaging in-store experience

in all store formats (whether they be in the traditional format or the new

store design), and there are new signage packs, visual merchandising

standards and informative point of sale materials being introduced to all

stores nationally in October 2013.

We are also rolling out sales and product training modules via an online

learning management system which will allow us to better service our

customers’ needs in store as we become known as a knowledge base for

all things sport.

SPORTS RETAILING32


OUR PEOPLEThe culture and people within Super Retail Group make this a fantastic

business to be a part of. We foster growth and development from within

and allow the opinions and ideas of team members to be heard and

considered. We are passionate about our team members, who are the

foundation for our success. We create an environment where people can

live and breathe their passions inside and outside of work. Most of all, our

team members take pride in helping our customers make the most of their

leisure time.

We are committed to our team-based culture in which each individual team

member is encouraged to contribute to the success of the company and to

pursue their own personal development plan. Our culture is underpinned by

a set of five values:

PASSION

We create an environment in which we share a

passion for our business and our contribution

and successes are recognised. This means we:

• are committed

• show enthusiasm

• recognise others’ contribution

• celebrate success.

OPENNESS

We are committed to open and effective

communication and respect others’ opinions.

This means we:

• share information

• confirm understanding

• have our say

• listen openly.

INTEGRITY

We only say things that we know are true and

we only commit to things that we can do.

This means we:

• are truthful

• maintain confidentiality

• deliver on our commitments

• accept responsibility.

CARE

We value each member of our team and have

a commitment to ensuring our business is safe

for everyone. This means we:

• work safely

• are considerate

• encourage each other

• consider the impacts of our actions.

DISCIPLINE

We commit to the plan, resource effectively

and follow the agreed processes and standards.

This means we:

• explain expectations

• collaborate as a team

• take pride in all that we do

• monitor progress and take action.

OUR PEOPLE 33


LEARninG AnD ORGAniSATiOnAL DEvELOPMEnT

We are committed to growing our team members and focus on

both succession planning and personal growth. We encourage

our team members to make the most of learning opportunities

available to them, including: retail training, management training,

leadership development programs, post graduate and personal

development programs.

Super Retail Group operates as an Enterprise Registered Training

Organisation which allows us to offer a range of qualifications

aligned to our internal development needs. Our overarching focus

is to provide our team members with the opportunity to have a

career in retail.

We truly value investing in and developing our people and offer

an extensive range of internal and external opportunities. We

empower our team members to define their own pathways to

success; working with their manager to identify how well they are

performing, how they can improve, and what skills they need to

achieve that success.

SAFETY, HEALTH AnD WELLBEinG

We are committed to providing a healthy and safe workplace for

our team members and customers. To that end, our Health, Safety

and Wellbeing Strategic Plan ‘Healthy, Safe & Productive Lives’

reflects a proactive behaviour-based approach. We integrate

health, safety, wellbeing and injury management into our team

culture and core values, and the way that we do business. We

provide a range of health and wellbeing activities and initiatives

designed to educate and assist team members to live a safe and

healthy life. Our ‘Get Active’ framework focuses on bringing

information, promotions and offers, tools and tips to support team

members in achieving a healthy and active lifestyle.

COMMUniCATiOn AnD EnGAGEMEnT

Our people shape our business. We care about our team members’

opinions and what they have to say. As a business we are

committed to providing a great place to work for every member of

our team.

The Group introduced a new engagement survey in 2012 and we

are proud of our second year results which see us exceeding the

Australia/New Zealand retail average by six per cent and entering

the ‘High Performance/Best Employer’ range. The feedback

provided by our team helps us make a real difference for our

people, culture, communications, leadership behaviour and

training. As a business we have set aggressive targets for the future

and aim to be one of Australasia’s best employers.

ATTRACTiOn AnD RETEnTiOn

In a period of growth, we are committed to attracting and retaining

the best people. We are committed to providing the best start for

our team and assisting them to be the best they can be.

We are passionate about providing tools to our team to assist them

in their day to day role. We continue to review our approach to

ensure we are providing a range of mechanisms to support the

recognition, reward, attraction and retention of our team.

Our annualised retention rate for the Group in 2013 increased to

72.72% with this figure including both permanent and casual team

member turnover. We are continuing to build on our retention

rate and are proud that this continues to increase year on year. We

benchmark ourselves against the industry to ensure we continue to

deliver a rewarding experience to our team.

Our commitment to attracting the best candidates has led to

innovation in our recruitment processes, allowing us to identify the

person that best suits our culture and our business.

WORkPLACE GEnDER EQUALiTY

Super Retail Group lodged a report with the Workplace Gender

Equality Agency (WGEA) for the 2012/2013 reporting period that

includes a workplace profile and a commitment to complying with

the new notification and access requirements of the Workplace

Gender Equality Act 2012 (Act). Super Retail Group is committed to

meeting our WGEA reporting requirements on an annual basis.

PERMANENT FULL TIME31%

PERMANENT PART TIME18%

TEMPORARY FULL TIME1%

TEMPORARY PART TIME1%

CASUAL49%

PERMANENT FULL TIME31%

PERMANENT PART TIME18%

TEMPORARY FULL TIME1%

TEMPORARY PART TIME1%

CASUAL49%

TEAM MEMBER EMPLOYMEnT STATUS

OUR PEOPLE34


2013

2012

2011

2010

2009

2008

2007

73%72%71%65%68%55%54%

TEAM MEMBER RETEnTiOn

117931138760415616555749904469

2013

2012

2011

2010

2009

2008

2007

TEAM MEMBERS YEAR On YEAR

30%

14%

9%

6%33%

6%

1%

1%

SUPERCHEAP AUTO

BCF

AMART SPORTS

RAY’S OUTDOORSREBEL

GROUP SERVICES

GOLDCROSS CYCLES

FCO

30%

14%

9%

6%33%

6%

1%

1%

SUPERCHEAP AUTO

BCF

AMART SPORTS

RAY’S OUTDOORSREBEL

GROUP SERVICES

GOLDCROSS CYCLES

FCO

TEAM MEMBERS BY

BRAnD

AMARTSPORTS

BCF

FCO

GOLDCROSSCYCLES

GROUPSERVICES

RAY’SOUTDOORS

REBEL

SUPERCHEAPAUTO

53%64%60%88%60%49%45%62%

47%36%40%12%

40%51%55%38%

MALE FEMALE

GEnDER BY BUSinESS UniT

OUR PEOPLE 35


2012 - 2013FINANCIAL SUMMARY

APPENDIX

APPENDIX36


NET DEBT ($m)

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

93.

5

117.

8

114

.7

78.8

73.5

341.

0

329

.3

DIVIDEND (¢)

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

10.5 13

.0 18.0 21

.5

29.0 32

.0 38.0

SALES ($m)

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

624

.8

715.

4

828.

8

938

.0

109

2.3 16

54.1

2020

.0

EBIT ($m)*

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

38.1

45.

7

55.1

65.

8 87.5

140

.7 172.

3

*excludes goodwill impairment charge in 2010

EPS (¢)*

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

19.5 22

.6 28.1 32

.1 40

.9 46

.4 52.3

* historical EPS adjusted to take into account the bonus element in the 2011 entitlement offer

POST TAX ROC (%)*

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

13.9 14.1

15.4 16

.8 17.3

15.9

12.6

* return calculation adjusted for goodwill impairment, acquisition costs and restructuring provisions

GEARING RATIO (%)

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

43.

3

46

.7

42.

3

22.6

19.5

33.1

31.0

POST TAX ROE (%)*

JUN07

JUN08

JUN09

JUN10

JUN11

JUN12

JUN13

18.8 19.8 22

.0

18.8

19.4

19.5

16.1

* return calculation adjusted for goodwill impairment, acquisition costs and restructuring provisions

PERFORMANCE TRENDS

PERFORMANCE TRENDS 37


FINANCIAL STATEMENTS

BALANCE SHEETCurrent assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

net assets

Total assets

Contributed equity

Reserves

Retained profits

Total equity attributable to equity holders of Super Retail Group Limited

517.2

962.3

1,479.5

313.3

434.7

748.0

731.5

542.3

9.5

179.7

731.5

492.3

893.1

1,385.4

226.9

469.8

696.7

688.7

541.8

(0.8)

147.7

688.7

20122013$m $m

CASH FLOW STATEMENTnet cash inflow from operating activities

net cash (outflow) from investing activities

net cash inflow (outflow) from financing activities

net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at end of year

225.1

(109.4)

(140.5)

(24.8)

22.3

135.3

(681.9)

567.9

21.3

47.0

20122013$m $m

INCOME STATEMENTRevenue from continuing operations

Cost of sales of goods

Operating expenses

Profit before income tax

Profit attributable to Members of Super Retail Group Limited

2,020.0

(1,121.9)

(751.3)

146.8

102.7

1,654.1

(929.5)

(604.5)

120.1

83.5

20122013$m $m

FINANCIAL STATEMENTS38


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