Super Retail Group effectively tackles Amazon’s foray in Australia, explores options to expand its digital offering pipeline

Super Retail Group, a massive retail chain based in Australia, is one of the few firms that seems to have an ace plan up in its sleeve for coming to grips with Amazon’s forthcoming entry in the Australia retail turf. If sources are to be believed, the Australian retail firm has opened up its communication channels with Amazon and has simultaneously prepped up its digital offerings.

Australia’s marketplace, in the recent months, has been ablaze with the news of Amazon’s decision to completely establish its presence in the country’s retail fraternity. The online retail market giant’s announcement of penetrating the Australian belt took half the world by storm, including prominent investors, economists, and the Australian stock market in its entirety. Post its announcement, most analysts predicted the genesis of an era of doom for the Australian retailers, while many others categorically declared that the region would remain markedly untouched by Amazon’s embrace. The ASX-listed Super Retail Group was among the several retailers that Morgan Stanley predicted, would experience downfall post the arrival of the U.S. online behemoth.

For the uninitiated, the Super Retail Group is a massive retail biggie in Australia, and the proud parent honcho of recognized brands such as Rebel, Ray’s Outdoors, Amart Sports, Infinite Retail, and many more. In the last six months, the shares of Super Retail Group shares have fallen by around 25%, possibly due to the fact that investors remained perpetually doubtful about Amazon’s impending influence on the company. However, Super’s annual result announcement has depicted a positive result of sorts – the company exhibited more than 62% increase in the net profit, amounting to around USD 101 million. The shares opened to positive response, and closed at around 7%, with an individual pricing of more than USD 8.

These positive results have led the company to remain upbeat about its success, with or without the entry of Amazon. Also, having recognized the changing dynamics of the retail industry in recent times, the company’s heads have been unanimously planning to devise novel strategies for product sales and revenue generation.

Super Retail Group now plans to expand aggressively in digitization. In the last financial year, the digital sales in the company’s sports segment depicted a rise of 73%, the leisure division rose by 150%, while the auto sector was up by 75%. The company’s top shots claimed that these numbers were hugely driven by the ‘click and collect’ strategy – a rather remunerative advantage that brick-and-mortar storeowners possess, as opposed to the owners of businesses that solely operate online. The chief executive of the company was quoted stating that ‘we can serve customers in whatever way they want to be served’, thereby affirming that Super Retail Group could certainly corner the market with its digital offerings. For the record, the company’s digital sales have, on an average surpassed 70% in practically every division.

The company has also held insightful conversations with Amazon with regards to whether it would be willing to market and commercialize its goods through Amazon. And, if sources are to be believed, the Australian retail mega company has given an affirmative nod for the same. Consumers may, in all probability, expect Super Retail Group explore its options with Amazon, as it did with eBay.