Super Retail Group is raising $203 million to boost its online offering. The business has reported a surge in online traffic during the pandemic, of which the raised funds will help boost further growth.
The raised funds will not create any dramatic changes to the current strategy, the CEO explained.
“We want to be in a position of confidence to invest strongly in stuff that we know that works,” Anthony Heraghty, the CEO of Super Retail Group (SRG), told The Age. “There are no radical departures from the strategy, it’s about having the confidence to execute on what’s working.”
Super Retail Group will invest in its digital capabilities, which includes better supply chains, simplification of business strategy and increased analytics.
“Combined with other initiatives announced, it will allow the group to continue executing its growth agenda, invest in its market-leading brands, further differentiate its proposition and provide additional flexibility in an uncertain environment,” said Reg Row, the Founder of Supercheap Auto and a major investor in SRG.
While sales declined 26.2percent in April compared to the previous year, the number bounced back up 26.5 percent in May compared to 2019.
Online sales rose 126.2 percent during April and May, which represents nearly 20 percent of the company’s overall sales.
“In April we started to see everyone buying home gym equipment, and we saw strong demand. But as we enter football season…the business needs to very quickly pivot back to a more traditional organised sport mode,” said Heraghty.
“It’s about having the customer data and the analytics team to be able to know when those trends are shifting and being able to pivot the business and point out promotional energy towards the categories that are firing.”
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