Super Retail Group has reported “record” online and digital sales, and plans to invest a further $12 million in customer loyalty capabilities.
In its 2022 full-year results, the company reported its online sales and digital sales rose 44 percent over the year to $601 million, accounting for 17 percent of total sales.
Chief executive officer and group managing director Anthony Heraghty said the “record sales” result demonstrated SRG's “retail execution is continuing to improve, and we are capturing and expanded digital market share”.
SRG, which owns brands such as Boating Camping Fishing (BCF), Macpac, Rebel and Supercheap Auto, also saw a 73 percent increase in click-and-collect sales, reaching $332 million.
“Since FY19, online sales have increased by a factor of three times and they've increased as a proportion of overall sales from seven to 17 percent,” Heraghty said.
“Click-and-collect, which leverages the strength of our store network, continues to outgrow and outpace home delivery.
“In FY22, click and click represented 55 percent of total online sales and nine percent of total sales.
“The importance of our national store footprint is underscored by the fact that despite the pandemic in FY22 over 90 percent of our sales were transacted in store, whether it be through in-store sales or click-and-collect.”
Heraghty said SRG's order management system investment “is continuing to reap benefits in terms of reduced numbers of split deliveries adding to the profitability of a home delivery sales.”
He added the company is “investing a further $12 million in loyalty and customer loyalty capability.”
“This investment will help redesign our loyalty programs and build our customer analytics that allow businesses to make increasingly personalised offers to our customers, utilising analytically driven data and insights.”
Super Retail Group is seeking to better leverage its 9.2 million active club members' data as it builds out a loyalty and personalisation program.
“This program of work is well underway and its fruits can already be seen in the acceleration of club growth in the last 12 months, especially within Supercheap Auto,” Heraghty said.
“Looking forward, the group will launch new loyalty programs for Rebel, Supercheap Auto and BCF which will enable the business to focus growing at annual customer value by incentivising visitation and transaction value.
“Concurrently the group will continue to invest in advanced analytics capability.
"Our first use cases in personalised one-to-one promotions. The algorithm is built and the test-and-learn phase is well underway.
“In short, encouraging 9.2 million customers to visit that one more time or purchase that one more item generates a material benefit and this is the key goal of the program.”
Heraghty added Super Retail Group is aiming to hit a capital expenditure of $125 million over the next year as it continues to push forward through its investment in omnichannel and digital capability, as well as store development.
The retailer has already set aside $25 million in corporate costs and $19 million of expensed costs in personalisation and loyalty capability investment.
Its total capital expenditure over the past financial year included $65.9 million spent on omni-retail, loyalty and personalisation, and IT projects, partly reflecting investment in its loyalty and personalisation goals.
Another $58.8 million of its capital expenditure was spent on new stores and refurbishments programs.
The company reported sales of $3.55 billion, rising by 2.8 percent over the year.
It also reported a statutory net profit after tax of $241.2 million and a normalised net profit after tax of $244.1 million.
